Lesson 18 of the Hong Kong Stock Lecture: Deeply study the changes of the Hong Kong stock market

In the stock market, there are only three movements of prices: up, down and sideways. If we subdivide these three trends, we can get nine trends, namely, rapid rise, steady rise, repeated rise, rapid fall, steady fall, repeated fall, sideways partial stability, sideways partial softness and narrow sideways. If you ask why the price in the futures market will rise, you will inevitably say: "There are more buying orders than selling orders, and the price will naturally rise. This is a very simple relationship between supply and demand." Sorry! This answer is too simple, which also reflects that your understanding of the futures market is not deep enough. According to the author's market experience over the years, under different supply and demand relationships, the following different phenomena will occur in the futures market When demand exceeds supply, friends will actively hold good positions. They will match the buying order with the selling order under the best selling price, or list the buying order whose buying price is higher than the best buying price, reflecting their eagerness to complete the transaction.

When the demand is less than the supply, the weak friends will show their weakness, retreat to the high position, and test their strength. They adopt the average short selling method of accumulating short positions in batches; The more you sell, the higher you get in the market, but the price will not rise for long. Slowly, people will feel that the upward momentum is gradually weakening, and the downward momentum is gradually increasing When demand is similar to supply, the price will rise and fall repeatedly in a relatively small range. Although the price often deviates from the market equilibrium point of both the good and the bad, the range of higher or lower prices is limited to a certain extent in the market situation where prices are out of line. Whenever the price is excessively high or excessively low, market forces will soon pull the price back near the market equilibrium point.

When demand is similar to supply, the emergence of some positive/negative market news or chart signals will easily attract speculators into the market, pushing the price up/down to a higher/lower level, making the market fluctuate. Sometimes, you will find that there will suddenly be some active orders with significant quantity in the futures market, regardless of the transaction price. The normal order is based on the rise or fall of the future market, but these buyers/sellers did not follow up after the completion of the transaction, and the price tends to move in the opposite direction. So why do they enter the market? Could it be that they were forced to cut their positions because they did not have enough funds to make up their position deposits? In fact, these market participants may be option makers forced into the market for trading. The following examples can help you better understand the truth of this market phenomenon and identify the actual orders and orders that have no direct implications for the future direction.

     Related reports:

     Lesson 15 of Hong Kong Stock Market Lecture Hall: Understanding the Face of Small Stock Makers

     Hong Kong Stock Lecture Lesson 3: Initial Public Offering and Trading Operation