✅ Events in which the length of the bar increases
There are two main types of stock price going up: a V-shaped rise in which a stock price drops sharply and then rises sharply, and a case in which it gradually rises after a sufficient sideways movement after a fall, that is, a period adjustment.
Among them, the content to be studied is how to effectively buy imaginable stocks at the beginning of an uptrend after going through a sideways movement.
Some people follow the strategy of buying and waiting for stocks that have been sideways after the decline. However, in practice, we see many cases where stock prices, which had been sideways for several months after the decline and were unlikely to be pushed any further, plunged further at some point without waiting for it to be worthwhile.
Items in which the length of the bar is increased
Also, there are many cases in which a stock that has been sideways for a month and was expected to rise sooner or later does not budge even after a month or two or three months or more. In this case, all other stocks go up, but if my stock just slides sideways, I end up selling it out of frustration.
For reference, it would be roughly correct to say that the stock price boosters raise the stock price only after making almost all of the stock of long-term holders come out.
Rather than unconditionally buying and waiting for an item just because it stops falling and moving sideways, it is just the right way to buy at the beginning of an item that has been moving sideways to move up.
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| Pay attention to stocks as the length of the bar increases |
✅ How to judge by trading volume and daily length
Then, how can we know at the beginning of an uptrend that the share price, which has been sideways, has turned into an uptrend?
The best way to know that is by judging by the first trading volume and the length of the daily period. In other words, if the trading volume increases but the length of the bar suddenly increases and rises to the bullish trend, you can see it as a bullish turnaround signal.
