Detailed Introduction to the "Shrinking Volume Yang K Line" Stock Selection Method
Stock selection has always been a challenge for retail investors. Mastering certain stock-picking techniques can make the process easier. Today, the editor of Winner’s Academy brings you the "Shrinking Volume Yang K Line" stock selection method, which can help you effectively capture limit-up stocks.
What is the "Shrinking Volume Yang K Line" stock selection method? In this method, "shrinking volume" does not refer to the conventional meaning of reduced trading volume. Instead, it means that the "volume bar" of a stock’s shrinking volume matches the previous "main volume platform." Similarly, the "Yang K Line" is not the conventional bullish candlestick but rather a small bullish candlestick rather than a large one.
If we summarize this strategy based on the stock’s trend, it is clearly a low-buying approach. Therefore, it is less suitable for high-price levels showing such a pattern. When applied at low-price levels, the risk is relatively small, and if the situation does not unfold as predicted, you can exit safely. The downside is that the stock selection process is somewhat tedious, requiring daily selection during the closing session, which demands quick execution.
In practical application, the "Shrinking Volume Yang K Line" stock selection method cannot precisely indicate entry and exit points. Thus, when determining specific buying points, investors still need to rely on other indicators for comprehensive analysis to improve the success rate of their operations.
That concludes our brief introduction to the "Shrinking Volume Yang K Line" stock selection method. We believe you now have a good grasp of it. If you wish to learn about futures trading, you can click on the "Futures Knowledge" section to explore further. Finally, we hope everyone has a great start to the week on Monday.