The main rising wave refers to the market with the largest increase and the longest rising duration in a round of market, which is similar to the third wave in wave theory. The main rising wave market is often developed rapidly after the strong adjustment of the broader market. It is the main profit-making stage for investors in a round of market. If you can capture the stocks that are developing the main rising wave market, you can expect to get rich returns in the short term. To participate in the main rising wave market, you must understand.

Characteristics and application methods of main rising wave

From a technical point of view, when the main rising wave market develops, the following characteristics generally appear: the daily K-line has a sunny line, there is an upward gap, the stock price has a daily limit, and the technical indicators are passivated at a high level:

1, there is a big positive line on the daily K-line. Under normal circumstances, if the stock price is at a relatively low level, the main force will slowly push it up in the form of a small yin and a small yang, and the increase will be controlled within 7% intentionally or unintentionally, because at this time, the main force does not want anyone to follow suit, nor does it want to be listed with an increase of more than 7%. When there is a certain increase in the stock price and the main force hopes that the market will follow up, there will be a big Yang line. For example, Changan Automobile, which took a small step in the early stage, recently began to pull the Dayang line at a brisk pace, indicating that the stock price has entered the main rising wave.

2. There is an upward gap. Generally speaking, the high stock price gap is a strong long signal. If it is high, the stock price can continue to rise, or even close at the daily limit, which is a signal that the main rising wave is unfolding. Recently, strong stocks such as Nangang, Ling Gang and Meiyan all left a big gap, and their share prices started the most explosive three-wave rise.

3. The stock price has a daily limit. In a strong market, if the stock price has a daily limit, it is generally a sign that the main rising wave is unfolding. For example, in July 2000, Ling Gang shares had a continuous daily limit trend, and recently this tough trend reappeared, and the stock price continued to pull the daily limit. For stocks whose share price has just been pulled up from the bottom, investors can follow up in time at the first daily limit.

4. High passivation of technical indicators, especially repeated high passivation of stochastic indicator KDJ. In a balanced market or a downward trend, stochastic indicators need to be prepared to sell as long as they enter the overbought area; Once there is high passivation, we must resolutely clear the warehouse and ship it. In the main rising market, the application principle of stochastic indicators is just the opposite. When the stochastic indicators are repeatedly passivated at a high level, investors can firmly hold shares and maximize the profits of the main rising waves. When stochastic indicators enter the overbought area, investors should be alert that the main rising wave market is coming to an end.

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Theory is always theory! This is the main rising wave!