How to sell at the top of weekly K line
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Times Source: Top Financial Writer: Stock Market Sniper -Small +Large
How to sell at the top of weekly K line
The K line in different cycles also has different effects on market analysis. The head shape of the daily K line is an important indicator to judge selling points, but sometimes the daily K line will make false heads. For medium - and long-term investors, it is more effective to judge the head by looking at the weekly K line graph.
Look at the weekly K line graph, lengthen the overall cycle, and then look at the fluctuations of individual stocks from the large bands. This can avoid the false head shape on the daily K line, and will not be confused by the small fluctuations in the middle. Sometimes, after making a false head on the daily line, a big positive line will recover and lose ground, starting a more fierce rise, which is also common in A-shares. Look at the head shape of the K line, do not be surprised, and wait for the top building signal of the Zhou K line to appear.
After the formation of the head of the Zhou-K line, it is generally a strong pressure zone that needs attention for the medium and long lines. Generally, the time period for the formation of the arc top and the M top head is relatively long. After the top of the market appears, it is generally not a one size fits all approach that does not give any opportunity to exit. Generally, after the top of the market is built, individual stocks will rebound after breaking the neck line, which is accompanied by shrinking trading volume, and the neck line is often the position where the rebound ends, which is also the last exit opportunity given by the market. If it is an inexperienced retail investor who is prone to misjudge the rebound as a pullback before the record high, it is a position for the old investors to leave the market completely. This requires retail investors to constantly improve their analytical models and make correct judgments.
Head features of Zhou-K line:
1. It occurs after continuous rise, and after a considerable rise, it is the interval of building the top. The small increase is generally just a rest in the rising trend, which can be regarded as a relay of rise. Temporary stagflation does not appear at the top. (Shareholders College: http://www.58188.com )
2. To construct the top form of K line, there must be an upper shadow line. The upper shadow line represents the strong pressure drop after the surge. In the head construction, there will be more upper shadow lines on the Japanese K line and the weekly K line, especially the long upper shadow line.
3. The top will be built only when excessive trading volume is released during the rise. The market makers could not take the opportunity to ship without a sudden increase in trading volume. Therefore, volume amplification is also a key sign.
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