Depu Capital: How to choose a dark horse using a V-shaped inversion chart!
A V-form reversal is a form of reversal that changes very quickly and is very strong. It usually occurs after a rapid and sharp decline. The stock price is far from the heavily traded area. Once the market is bought, the stock price will rise rapidly, the short position will be heavily absorbed, and the volume will suddenly increase.

The reason for this is that this reversal itself is either a crackdown by the dealer to attract funds, or a deep wash. Once the dealer discovers that there are not many floating chips, but there are a lot of payments at the low level, the cheap chips will not fall into the hands of others, and it is reasonable to pull them up quickly. This strategic thinking originated in Lao Tzu: "If you want to get involved in it, you must strengthen it; if you want to weaken it, you must strengthen it; if you want to abolish it, you must strengthen it; if you want to seize it, you must strengthen it temporarily." This means that it will restrain it and must temporarily expand it; it will weaken it and must temporarily strengthen it; if you are about to give it up, you must temporarily rise; if you are about to seize it, you must temporarily give it. This idea is in line with dialectics. If you chase the enemy too hard, you If the enemy escapes, it collapses. Therefore, the wise commander drains the enemy's stamina and will without approaching him, so that he can win without bloodshed.
In the stock market, it would cost a lot of money and cost a lot of money for the market makers to push up forcibly. Instead, it would be better to wash the market sharply first, and then attack after the confidence and will of most investors were wiped out. "Up", must first "down"!
It is necessary to pay attention to the use of V-reversals:
① It is found that individual stocks are showing a clear V-shaped reversal, combined with the research and judgment of individual stock fundamentals, when there is the courage to cut through the mess quickly.
② The bottom of the V reversal is preferably close to the previous bottom, or supported by an uptrend.
③ In the early stage, the stock used to be a bull stock in the market (except for new stocks), or there was a strong rise. Such individual stock makers are usually not out, and V-reversals are more credible.
The above is the main content of using the V-shaped inversion chart to select the dark horse, and it is recommended that you visitDepu Foreign ExchangeCollege to improve your theoretical knowledge
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Disclaimer: The content of this article does not represent the views of the Institute of Foreign Exchange. The content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.
