Band operation is the best operation technique to obtain short-term income when the market is in turmoil. Moreover, this flexible operation method can also effectively avoid market risks, preserve financial strength and cultivate market sense. A complete swing operation process involves buying, selling and selecting investment points in three aspects.
First, the choice of band operation.
Those that are more suitable for band operations will have an unnatural increase in volume during the bottoming stage, and the effective amplification of volume energy shows that incremental funds are actively involved. Because retail funds will not flock to build positions under the double blow of bad fundamentals and bad technicals. Therefore, the heavy volume at this time shows that some panicked stocks are fleeing regardless of cost, and the price keeps falling during the heavy volume just proves that In addition, mainstream funds are waiting for opportunities to build positions. Therefore, it can be inferred that the price of gold is extremely rich in short-term opportunities in the future market.
Second, the timing of buying in the band operation.
It is necessary to refer to the central area of bottoming. The repeatedly oscillating bottoming market will naturally form a certain central area, and the market will repeatedly circle around this central area. When the index rises too rapidly, it will fall back to the central area; when the index falls Excessive, it will bounce back. According to this characteristic, investors can choose the best time to actively buy when the market falls and is far away from its bottoming center area.
3. The timing of selling in the band operation should depend on the situation.
In the process of bottoming out of the market, there will be many pulse-like rises, but there is only one real breakthrough rise. The most important basis for identifying whether the rising market is a breakthrough is the fluctuation range and trading volume of the gold price. When the fluctuation range and volume energy continue to shrink and reach the critical point, the rapid rising market that erupts is a breakthrough rising market. It is recommended to invest at this time Investors can appropriately chase the rise. For other impulsive rising markets, steady investors or investors who are not skilled in short-term skills should try not to participate.