Last year, the stock market opened up. The initial implementation of the fusing mechanism made the stock market just in a mess. The Shanghai Composite Index dropped sharply from 3536 to 2638 in January last year. Many investors, even a large number of institutions, did not slow down until the end of last year. This situation is unlikely to happen this year.

Both low absorption and rising prices are only a means of dealing, not the purpose of trading. They both have their own advantages and weaknesses. Here is a brief summary.

The core secret of low absorption.

1, trend support

The best low absorption should be the reverse line of the K-line, and there is no reverse trend in the moving average system. When the 5/10/20/30/60 (short and medium term) average line system diverges upward, there is no occurrence of the reverse 5 day or 10 day moving average 20/30/60 average line.

2. Moving average.

In order to prevent the location of low suction from occurring locally, the normal value of the 5 day moving average and the 30 day moving average can not be greater than 5%. Otherwise, it may seem to be low absorbing but actually high.

3. Index environment

Low suction requires high index environment, general requirements.

In the bull market pattern, in the weak market structure, the center of gravity continues to move down and is subject to unanimous counter pressure from the big average, which is much more risky than the chase.

4. Low volume.

Generally, this happens precisely in the case of poor index, or at the end of the fall. A small number of stocks begin to attack continuously. The width of the volume generally breaks through the reverse pressure of the large average line in 3-5 or 5-10 trading days, and returns to the place not far from the big moving average. When the 30/ 60 days average return test is not broken, it usually generates 1-3 or 5-8 days of rising action.

There are also some.

It is through this way that the interim trend will turn, and then there will not be a rapid upward attack. Instead, the shift will slow down and then turn into a rising pattern. The subsequent rise will last for a long time, which will probably be seen only after the 20 trading day.

If the market environment has not been able to turn better, and the next day after the low volume of volume rises, and lose the attack power again, we must know how to get good results, because the market is running in extremely weak environment. Once these stocks are added, the speed is fast and fierce, and the space is huge.

5, stop loss settings

No matter how exquisite and superb the technology is, it can be wrong, so we must set stop loss. When important key points are broken, we should know how to stop.

Because of this, the main tactics are constantly changing. Sometimes all important positions are broken and then turned upward. There are two ways:

One is that after the formation of a short stock pattern, the V reversal will suddenly occur in the way of trading. If it is used to low absorption, it will not catch up at this time, so that the main force will be able to achieve the goal of combating low absorption so as to successfully complete the main lift.

The second is to break up the position again after slowly breaking up the sun plate, eat the loss of not dare to breathe low in this position, but this time it came true, it directly entered the acceleration main stage.

Therefore, we should pay enough attention to the rising of some important locations. Two, if we produce two low absorption points, we should pay more attention to the paction. In fact, the low suction point here will be more reliable than the first time.

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