(Second page - normal disk analysis)
Title: The difference in volume and price of different market types in actual combat. How to judge and operate the long market and short market?
The market can be simply divided into three types of disk types, namely normal disks, long-killing disks, and short-squeezing disks. Among them, long-killing disks and short-squeezing disks are special disk types, which are also commonly known as low-grade passivation and high-grade passivation.
If investors are inexperienced and unfamiliar with market patterns and cannot directly identify them from technical charts, here we will teach you how to quickly use the visual Stoch stochastic indicator to assist your judgment (the parameter value can be modified to 9, 1, 3 or 9 ,3,3 use).
1. Normal disk:
1. Stochastic indicator assists in judgment:
The KD value falls approximately between 20-80, as shown in the corresponding position of the green box in the picture.
2.Purpose of disc type:
For general market conditions, washing and adjusting shipments under normal standards, the relationship between volume and price can be used in conjunction with the status of whales' main chips to judge and formulate trading strategies.
3. Volume-price relationship:
In the case of favorable bullish conditions, the trading volume should increase moderately as the price reaches a high when it rises; when it corrects in a downward trend, as the price hits a low, its trading volume should gradually shrink.
On the contrary, if the price reaches a high during the rise and the trading volume does not increase moderately, the multi-side divergence will begin to accumulate. At this time, there will be a need for a downward correction to test the support.
The greater the number of bullish divergences accumulated, the more severe the subsequent downward correction will be.
In addition, if the price hits a low during the decline and the trading volume continues to shrink, the short side divergence will begin to accumulate. At this time, there will be a need to rise to test the pressure.
The more accumulated short side divergence, the more intense the subsequent upward rebound will be to test the pressure.
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