Stock Terms: What Is Band?

　　 The band operation in the stock market means: high throw and low suction.

Adjust the market, rise, fall, and fall. Investor It's like a two monk. When the foreign exchange market rises, it will catch up. Finally, inventory of their own achievements, it must be a scarred mark. The reason is that investors are not correct in their operation of adjusting the market and the way of band manipulation, especially the buying and selling opportunities, are not accurately grasped.

The operational concept of adjusting the market is first to reduce the number of operations and reduce the profit expectation of each operation. This is a prerequisite. Only by doing so can we achieve every wave band correctly and generate as much profit as possible.

If we put the above idea into practice, that is how to do every rebound and avoid every drop. This article is mainly to solve how to participate in every wave of rebound, that is, how to identify and intervene in every wave of rebound, the most important thing is to identify a safe and beneficial buy point. Many investors choose the way of operation is to determine when the market is about to bottom, and constantly intervene in the bargain until the bottom of the stage appears to get a rebound income. This method looks good, may buy low cost or even the lowest price, but in fact, this method of operation is at risk, and is not the best way of operation. A better way to operate is to see the bottom stop signal first, then use the bottom point to confirm the effectiveness of the bottom stop signal. Stop signal A distance from the rebound height after formation is taken as the buying area. This is very safe in operation and low in cost.

We know that there is a rule in the foreign exchange market: after the end of a wave of rising market, there must be a wave of downward wave that is opposite to it. Similarly, after every decline, there is bound to be a rebound with its reverse. This should be one sentence. Exchange market quotes Rise and fall is the source of inflation. Since there is such a rule, we can find the possibility of future rebound in the process of market decline. So when you make an intervention decision, please take a serious look at whether there has been a decent decline in a month or more before the recent bottom of the current market. If not, please don't make a decision on buying temporarily. This is a minor premise to intervene in a wave of rebound.

Or our current market is going down, and the preparatory work we have to do is wait for the market to fall. Observe whether the decline and the corresponding fall time of the falling market are similar to their expectations; whether the observation market has entered an accelerated decline, fell below the trajectory of the downlink, and the market has been panic; observing the situation of the low price of funds entering quietly, and the situation of individual currencies against the market. All these will be the early signs of the low level stop signal. The so-called stop signal is the classic bull line combination and bull form at the end of the market. But the stop signal is just a signal, it needs further confirmation of the market. It may be the lowest point of rebound, but it is not a buy point, because its safety factor is not high. It should be the second lowest point in the market that is slightly higher than the stop signal. It's a bit like the bottom right side of the top and bottom. Of course, the key to the problem is to identify and find the stop signal. Only after this signal appears, can we make a buying judgement through the test of the effectiveness of the market.

Of course, sometimes there will not be a definite low point. If the market is easier to identify, if the market is rising steadily after 7 or 8 trading days, the callback will not be reversed. Generally speaking, it is possible to confirm that the market has started and can make an intervention decision.

Therefore, in adjusting the market, we only need to care and look for the signal of the end of the falling band, and then wait for the purchase. This operation can greatly reduce the number of operations and increase the probability of success, and achieve the purpose of stabilizing profits in the market. Avoid chaos market and bring you aimless operation.