Teach You Three Ways To Discern The Nature Of Collapse.

In fact, due to the impact of many sudden factors, it is very difficult to predict the short-term trend of the market, but it is certain to judge the trend of the medium and long term.

Looking at the market at home and abroad, there is always a bull bear cycle in the nine stages of the downturn, the initial period, the return period, the main period, the last stage, the first fall, the rebound, the fall and the fall.

Most of the slump occurs in the bull market's return period and the bear market's initial fall period and the main fall period.

It should be emphasized that the collapse occurs at different stages of the market, and its nature is completely different.

For example, in February 27, 2007, Shanghai Composite Index fell 8.84% in a single day. In May 30, 2007 and June 4th, the Shanghai and Shenzhen stock markets also experienced a two crash. The Shanghai Composite Index fell by 6.50% and 8.26% respectively, but this is only a return after the bull market has experienced a rise.

In October 18, 2007, the Shanghai composite index only dropped by 3.50%, but it turned out to be a sign of turning the bear into a bear.

The mentality of the participating parties is different. During the bull market return period, it is obvious that most analysts and investors are trying to avoid overestimated investment types, looking for undervalued varieties, and showing a strong sense of risk prevention.

In the bull market and the bear market, the majority of analysts and investors are talking about how much room for growth.

Most of the sellers regret to blame themselves, and the stockholders are more reluctant to sell.

From the disk performance, often do not need much volume can make the index hit a new high, the whole market is full of optimism.

The collapse of the bull market on the way up, though large and full of horror, is usually not continuous.

Generally speaking, the line is more than the Yin line, and the overall trend is still upward.

When the trend reverses, it usually starts with a small drop. Usually the decline is not very large, but it has continuity.

From the view of the combination of K-line, though Yin and yang are interrelated, there must be more Yin line than Yang line.

After the crash, the overall trend will turn downward.

For example, in October 18, 2007, the Shanghai composite index had fallen by 0.92% on the day before it fell by 3.50%, and there was a quadruple negative trend on the disk. After that, it fell 4.80% again after two days of rebounding.

During the bull market's rise, especially in the early period of its rise, people's sensitive reaction to all kinds of bad news may cause a collapse at any time because of their horror memory in the recent bear market.

The two such as May 30, 2007 and June 4th are related to regulatory policies promulgated by management.

In contrast, the bear market's early fall period, because people's hearts still remain the enthusiasm of the bull market, is extremely numb to all kinds of bad news, and even sees bad profits as a good speculation. So when the crash is coming, most people still don't realize that this is the signal that the stock market has failed to boost the momentum of the stock market.