The analysis of the establishment of stock low is an important skill that investors need to master when trading stocks. It can help investors determine the bottom area of the stock price so that they can buy at the right time. The following are several commonly used methods for analyzing the establishment of stock lowsPinballfrvr:
onePinballfrvr. Technical index method
Technical index method is a commonly used analysis method, which mainly analyzes the changing trend of stock price through a variety of technical indicators. The commonly used technical indicators are MACD, RSI, KDJ and so on. These indicators can help investors judge whether stock prices have reached the bottom area. For example, when the value of the RSI is less than 30, it is usually considered oversold, which may mean that the stock price has hit bottom.
two。 Trend line method
The trend line method is to draw the trend line by connecting the high or low points on the stock price chart, so as to judge the trend of the stock price. When the stock price falls below the trend line, it may mean that the price has hit bottom. However, it should be noted that the effectiveness of the trend line needs to be judged by other technical analysis methods.
3. Bracing pressure method
The support pressure method is to judge the bottom area of the stock price by analyzing the support level and pressure level on the stock price chart. The support level is the resistance that may be encountered when the stock price falls, and the pressure level is the resistance that may be encountered when the stock price rises. When the stock price falls below the support level, it may mean that the price has hit bottom.
4. Fundamental analysis
The fundamental analysis method is to judge the value of the stock by analyzing the company's financial statements, industry prospects, management team and other factors. If the fundamentals of a company are good, but its stock price continues to fall, it may mean that the stock price is undervalued and in a low area.
The following is a table showing the advantages and disadvantages of the above four approaches:
The advantages and disadvantages of the analysis method are simple and easy to use, and the lag trend line method may exist in quantitative analysis. Intuitive, easy to operate, need to be combined with other methods to determine the effectiveness of support pressure method can help determine the timing of buying and selling may be affected by market sentiment fundamental analysis can be in-depth understanding of the company situation requires a lot of financial and industry knowledgeIt should be noted that any analysis method has its limitations, and investors need to combine a variety of methods to make a comprehensive judgment in practice. At the same time, there is uncertainty in the stock market, so investment should be cautious.
