How to find stocks that have reversed at the bottom

Answer 1

Looking for stocks that reversed at the bottom could be done from the following aspects:

** 1. In terms of technical form **
1. ** Pay attention to the changes in stock prices and moving average **
- At the end of the stock price decline, the negative line changed from big to small, and the volume gradually shrank. This indicated that the bearish signal was exhausted and the bulls began to exert their strength. If at this time the moving average is reversed from the short position, there will be a large positive line and the volume can gradually enlarge, the market can confirm the reversal, and this stock can follow up.
- When the stock price fluctuates at a low level, if it suddenly continues to shrink and fall to a new low, many individual investors will be washed out by the main force and the cross star will find out the bottom. The next day, there will be a big positive line (sometimes reverse), and the average line will change from a bonded state to a long position, and the reversal form will be established.
- The stock price continued to fall to a new low, and the moving average was arranged short. When the short-term moving average deviation was less than 1%, there would be a big positive line, and the moving average would bond. There would be a chance for the main wave to rise in the market.
2. ** Distinguish typical bottom reversal patterns **
- ** V-shaped bottom **: Quickly build a bottom in the process of stock price decline and form a V-shaped bottom before quickly reversing. The left half of the stock price quickly fell and shrank, and the duration was short; the right half of the stock price quickly rose and the trading volume increased, and the duration was also short. However, this form was more aggressive and difficult to grasp, and the technical analysis method should be treated with caution when it was not mature.
- ** Double bottom (W-bottom)**: The stock price rebounded slightly after the first downward movement to form a bottom. After that, it continued downward and formed a bottom again near the previous bottom. If the second bottom is higher than the first bottom, the reversal of the trend is strong; if the second bottom is flat or lower than the first bottom, the reversal is weak. There was volume when it broke up, and there was volume when it fell, indicating that there was new capital injection.
- ** Head, shoulders, bottom **: There are three bottom patterns formed during the downward trend of the stock price. The first and third bottom lows are close to each other, and the second bottom is the lowest point. The left and right bases were like shoulders, and the middle was like a head. When building the bottom, shrink the volume, and when the second shoulder is higher than the first shoulder, the market will increase the momentum. The small rebound in the construction lacked volume coordination, but the volume continued to increase during the reversal. The high point of the second ridge was near the high point of the first ridge. After the effective breakthrough of the two ridges, the shape of the bottom was reversed and confirmed.
- ** Triple bottom **: The stock price has dropped to the bottom several times after the previous decline has slowed down, forming a bottom pattern with three similar lows. The high point of the ridge formed by multiple bottom bounces is the resistance line of the late reversal, and the volume needs to be matched when breaking through. During the formation process, the more the volume shrank when it fell to a low point, the higher the rebound height, the larger the volume during the rebound, and the greater the rebound time and height. It was suitable for medium-term investors.
- ** Round bottom **: The stock price formed a smooth bottom shape without obvious fluctuations. It is the performance of the main force patiently absorbing chips. The stock price rise on the left side of the circular bottom form was a buying point, and the strong stock price reversal was supported by the dense Yang K line form.

3. ** Special K-line form **
- ** Embryonic line form **: Appears in an obvious downtrend. If the entity is very small on the first day and very large on the second day, it may indicate that the driving force of the original trend has subsided and the potential power of the new trend has grown. On the second day, the entity will swallow more than one entity, or the bullion-engulfing form appears after a very long-term or very rapid market movement. The possibility of forming an important reversal signal is greatly increased.
- [Single needle bottom probe]: It was also a K-line form with the bottom reversed.

- ** Continuous Yang Line at the bottom **: For example, the bottom of the continuous Yang line (7 consecutive Yang, 8 consecutive Yang, etc.) or the compound continuous Yang line (such as 7 consecutive Yang + Yin +6 consecutive Yang), as long as you carefully filter and patiently follow, you may find dark horse stocks.

** 2. Volume **
1. If there are multiple consecutive times of trading volume in the bottom area, the trading volume red column below the stock price will be significantly enlarged at the beginning of the stock price (more than double the volume column in front and the K line will close the positive line). In the following weeks, there will be three or four times of trading volume, which may be the main institutions or large hot money at the bottom. The time interval between the appearance of multiple Yang is long, the main capital enters slowly, and the probability of a short-term rise is small; if the interval is close, the market may be brewing.

** 3. The relative performance of stock prices **
1. Low stocks that resisted the trend were worth paying attention to. When the overall market was not good and the market or the corresponding sector continued to fall, some stocks could rise against the trend or decline less than the sector and the market. This indicated that the main force was highly controlled and the external environment had little influence on it. Although it might not rise sharply, it would gradually rise. He just needed to find the right trend line.

** 4. Main force behavior **
1. A stock that washed up after the daily limit rose at a low price. When the market was consolidating at the bottom, it suddenly rose to the limit, followed by a big Yin correction. This was the main test behavior. Through the daily limit to confirm the upper selling pressure, the big Yin correction washed out the unstable position. He had to observe whether the Great Yin's correction would break through the previous lows. If it didn't, he could pay attention to it.
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