The consolidation in the decline is that the stock price stabilizes slightly after a period of decline, rebounds slightly, and then turns around again. The corresponding early decline was hit by bad news, and consolidation was just an empty strategy for rest. The share price rebounded slightly, but it could not withstand the air attack, and the share price fell again. Judging from the volume of transactions, the price decline has increased.
In fact, according to the different stages of stock price movement, we can divide it into four situations: upward consolidation, downward consolidation, high-grade consolidation and low-grade consolidation.
How to deal with consolidation?
The performance of stock in the stock market includes rising form, falling form and consolidation form. There are many manifestations of ascent, such as rocket launch, pulse ascent, steady ascent, advance and retreat, etc. Of course, there are many kinds of performances of falling, such as diving, blunt knife cutting and so on. Today I want to talk about the integration model.
Many people don't know the consolidation of the stock, and you don't know whether it will go down in the future. There is a saying in the stock market that the stock price will fall if it is consolidated for a long time. Actually, it's not. If you are in the bottom area, the longer the market is, the greater the future increase may be. There is also a saying in the stock market that how long the horizontal direction is, how high the vertical direction is. This also proves that everything has its two sides, and it is reflected in the stock price in the stock market, as well.
How to face consolidation depends on whether the stock price is at a low or high level. In fact, the stock market is not absolutely low. What you think is low is not necessarily low, and the stock price may go down. In this case, we should consider stock valuation. If the listed companies operate well, their performance is on the rise, and now the P/E ratio is relatively low, this situation can be considered as low.
If the stock price is consolidating at a low level, it may take a short time or a long time, even longer than expected. The stock price can be consolidated to your disgust and disappointment, but once this stock rises, its strength and extent will be amazing. Most people can't stand this consolidation, so the dark horse is in their hands.
If you are bullish on a stock, it may be a good opportunity for you when it is consolidating at a low level. You can use your own technology to make a T and make a price difference to dilute the cost and try to reduce your own shareholding cost. Once the stock starts to rise, it can get excess returns.
If the stock price rises from the bottom for a period of time and then starts to consolidate, we can call it a median consolidation. There are several reasons for integration in this case. First, the short-term index is too high, and the consolidation is to repair the index. Second, cleaning the profit-making disk and refueling in the air will help to continue to rise. Graphically, it is in the form of flag arrangement or rising triangle arrangement. Third, the pressure on the shift is high, the main force is unwilling to fight or the market dies halfway, then this consolidation will fall, and the triangle consolidation state may fall in the graph, but sometimes the downward triangle will break through after finishing.
If it is a high consolidation, be careful, and the probability of a long-term decline is greater. In this state, it is necessary to refer to MACD, RSI, Bollinger Band and other technical indicators for comprehensive analysis. Generally don't buy stocks with high consolidation. Now the stock market is not as ups and downs as before. The stock index has risen, but there are many stocks that have not risen, and there are many stocks to choose from. Don't hang yourself from a tree. In this case, you can choose other stock operations, or choose to rest.
This market is constantly changing every day. If you are a novice, you may wish to carefully record when the stock is consolidating, simulate and judge the future trend yourself, and come back for verification after a while. You can also open the K-line chart of other stocks and observe several forms and results of stock consolidation. In fact, this is an experience. As a retail investor, you should keep observing, learning and experiencing in order to grow in the stock market.
What is consolidation on the way down? How to deal with consolidation? The relevant content in the book is here for everyone to analyze. The consolidation state is a good opportunity for everyone to intervene halfway, but sometimes it also becomes a good opportunity for the banker to hurt the retail investors. Everyone should accumulate experience.