I thought about it at lunch time. If a stock falls below a certain price or moving average, is it a selling point or a better buying point? The essence is still a question of belief, not a simple question of the strength of its single-day trend. For example, Zhengdan was very weak on May 20, but it recovered afterwards. Judging from May 20 alone, it could continue to fall, and it may not necessarily stop falling the next day.
So it is still a question of belief or not. Today, the market is weak, but the various indexes are at the bottom of the box, a strong support position. Is it an opportunity or a risk? If the market is at a trough here, most stocks will rebound afterwards. Langyuan, as one of the highly recognizable trend stocks, will also rebound, but the strength may not be certain. Similar situations can be applied to any low-absorption of trend stocks. If it does not fall sharply, it will not return to the bottom of the box. If it falls sharply, it may fall too much and break a certain price. Should it stop loss or increase position? If you use common sense, buy it first when it falls below, and then buy it back when it stands above. But if it is a weak pullback after it stands above and buys it back, and then falls back, is it not a secondary injury? Then should it stop loss or increase position when it falls back again? You can't see anything from the discipline or the rules themselves, you have to look at the expectations. That is, whether you expect it to work, whether the market works, and then verify it with the trend, that is, how it is roughly when it falls, how it is roughly when it rises, and then see if this is still the best choice. That's how to weigh it. It's not just stepping on the rhythm, betting that it will definitely rise or fall tomorrow, but looking at the confirmation of expectations and trends.
Reflecting on it, it was wrong to buy Langyuan before. It should be okay to buy Langyuan this morning to bet on a rebound, because Zhengdan is very strong, and there is a probability that the rebound will be pulled up at the 10-line support level. In addition, the market will step back to the bottom of the box, and there will be expectations of trough repair afterwards. That is, although it is weak today, it is actually expected to rise tomorrow, so it should be okay to find recognizable trend stocks to buy low today.
If you want to know more about the relevant knowledge of the currency circle and the first-hand cutting-edge information, click on the avatar to follow me, Binance copy trading square top 5, contract reading skills free sharing, daily points #PEPE创历史新高 #现货以太坊ETF获美SEC批准 #BTC走势分析 #BTC走势分析 $ETH $BTC