[Economics study] Best stocks optimal timing part 5. A bull market peak signal, a bearish sign, a breakout signal, etc.

Last Updated: October 11, 2021 Categories: , , , Tags: ,

Best stocks, best timing, part 5

That's what I always say before I go in. This best stock optimal timing post is for myself to study stocks, so if you want to study more in-depth, I recommend that you buy the book yourself and read it. Personally, I want to move the charts in the book, but I can't draw this at all...

Last Peak Signals in a Bull Market

  1. When the daily rise is at its maximum. Be careful if it is the biggest rise since the full-fledged rise.
  2. When daily trading volume is at its peak. The trading volume on the day it hits the ceiling can record the highest since a full-fledged rise.
  3. The occurrence of an exhaustion gap. A stock that has risen sharply for several months is nearing its ceiling when it rises by a gap with an opening price that is much higher than the closing price of the previous day.
  4. final apex signs. Sell if a stock is trending very quickly for 2-3 weeks on the weekly chart, 7-8 days in a row on the daily chart, or 8 out of 10 days. This is called the final vertex.
  5. Signs of going out of business. In an uptrend, if the trading volume only increases without an additional increase, it is a signal that sales are withdrawn.
  6. stock split. Sell if 25-50% has risen for 1-2 weeks after the stock split announcement.
  7. An increase in the number of consecutive days of decline. Most stocks, once hitting the ceiling, have more consecutive falling days than consecutive rising days.
  8. uptrend line. If the stock price, which has been on a strong uptrend and has risen sharply, breaks through the uptrend line, sell the stock.
  9. 200-day moving average. It is better to sell when the stock price rises 70-100% or higher above the 200-day moving average.
  10. Sell when it hits the ceiling and comes down. If you can't sell when the stock is rising, you should sell even when it hits the ceiling.

Low volume and other bearish signs

  1. Reports with low trading volume. If the stock price is rising but the trading volume is decreasing, it means that big hands are less interested.
  2. When the closing price is at or close to the low of the day. If the daily bar shows a downward-pointing arrow on the stock price chart, it can be said that it has hit the ceiling.
  3. Third or fourth shape. After the stock price has formed three or four times, sell it when the new price is reached. It is very rare to make a shape three times.
  4. A weak rebound signal. The first large-scale sell volume near the ceiling, followed by a rebound with low trading volume and a small rise, ending in a few days.
  5. retreat from the apex. After the stock price reaches its peak and drops by about 8%, you need to take a closer look at the range, peak, and downtrend, and then determine whether the uptrend has completely ended, or whether a normal correction of 8~12% is in progress.
  6. Weakening of relative share price strength. If the relative strength of the stock is falling, it is a sell signal. If it's below 70, think deeply.
  7. lonely sport. If other major stocks in the same sector are bullish at all but are on the rise, consider selling.

collapse of support

  1. When the long-term uptrend line breaks. If one day the share price drops below an important long-term uptrend line accompanied by explosive volume, or breaks below a price point that has served as a strong support line, the stock should be sold. An uptrend line must be a connection of three or more daily or weekly points over several months. The shorter the period, the lower the value.
  2. The largest daily drop. If a stock that has been on an upward streak for a long time has fallen by the biggest drop in one day after a sudden rise, check for other signals and consider selling.
  3. A decline in the stock price accompanied by a surge in weekly trading volume. Sell the stock if the stock price drops while the stock is trading at a volume you haven't seen in years.
  4. A downward reversal of the 200-day moving average. If the 200-day moving average of a stock that has been on an uptrend for a long time has reversed downward, consider selling. Or, if you made a shape but the stock moved below the 200-day moving average or below the middle of the shape, sell when it hits a new high.
  5. If it moves sideways below the 10-week moving average. Consider selling if the stock price continues to rise for a long period of time and falls below the 10-week moving average and then moves sideways without re-rising for 8 to 9 weeks.
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