pennpursuit3handle| How to use technical analysis to identify the main behaviors of the stock market?
in the stock marketpennpursuit3handleInvestors often pay attention to the main capitalpennpursuit3handleBecause the inflow and outflow of these funds can often reflect market trends and potential investment opportunities. However, the main funds are often hidden and not easily detected by ordinary investors. This article will introduce how to use technical analysis to identify the dominant behaviors in the stock market.
1. Analyze transaction volume
Trading volume is one of the key factors in identifying dominant behaviors. When the trading volume of a certain stock increases sharply, it is likely that the main force is actively operating. We can use volume histograms to observe changes in volume. If the trading volume is significantly enlarged during the stock price rise or fall, this may be the main fund in the process of attracting or shipping.
2. Observe price behavior
Price behavior is another important technical analysis tool that can help us identify key behaviors. If stock prices rise or fall sharply in a short period of time, accompanied by an increase in trading volume, this may be the main force pulling up or suppressing. In addition, if the stock price fluctuates repeatedly within a range and the trading volume is significantly enlarged, this may be the main force washing or attracting funds.
3. Pay attention to the moving average system
The moving average system can reflect the overall trend of stock prices. If the short-term moving average crosses the long-term moving average and the trading volume increases, this may be the main force in attracting funds. On the contrary, if the short-term moving average crosses the long-term moving average and the transaction volume shrinks, this may be the main force in shipments.
4. Use of technical indicators
Technical indicators can provide more information to help us identify dominant behaviors. For example, the MACD indicator can reflect the momentum changes in stock prices. If the MACD line turns from negative to positive, accompanied by an increase in trading volume, this may be the main force in attracting funds. The RSI indicator can reflect the overbought or oversold situation of stock prices. If the RSI value continues to be above 70 for a period of time, this may be the main force pulling up.
5. Comprehensive analysis
In actual operation, we need to comprehensively use the above technical analysis tools and judge the main behavior by comparing multiple factors. For example, we can comprehensively consider changes in trading volume, price behavior, moving average systems and technical indicators to improve the accuracy of identifying key behaviors.
The following are tables of some stock examples that show how to identify dominant behaviors:
Stock code trading volume changes price behavior moving average system technical indicators 00001 trading volume significantly enlarged stock price rose sharply in the short term short-term moving average crossed long-term moving average MACD line turned from negative to positive 000002 trading volume shrank stock price repeatedly fluctuated within a range short-term moving average crossed long-term moving average RSI value continues to be higher than 70Through the above analysis, we can more accurately identify the main behaviors in the stock market and make more informed investment decisions. However, it should be noted that technical analysis is only a reference factor for investment decisions. Investors also need to combine other information, such as company fundamentals, macroeconomic conditions, etc., to make comprehensive investment decisions.
