The rise and fall of the stock is determined by the game between the long and the short. When the person who wants to sell is unwilling to sell at a low price or cannot sell, the person who wants to buy thinks that there is still room for decline and is unwilling to buy the stock at the current price. It will fall into an immeasurable state because of inactive trading. Generally, we think that the turnover rate is less than 1% as immeasurable. And the decline is because the short side power is temporarily stronger than the multi side power, and the degree of the decline may be a negative decline or a sharp decline. Here, Mr. Xi Cai has come to analyze several different situations in detail.
Infinite decline when the bottom is sideways
When individual stocks have fallen for a period of time, they may enter the bottom sideways stage, profit-making market gradually manages finances, losing confidence in the meat market gradually manages finances, only the hold-down market is still holding, the stock price continues to be low, and the trading volume gradually shrinks until it is unlimited .
1. When the stock decline is small, the impact is not great, and it may just be the adjustment of individual stocks following the broader market. However, at this time, retail investors are mostly blind with small orders. They may panic due to the adjustment of the market. As long as the market does not plummet, the decline of individual stocks is generally within 3 points.
2. When stocks have fallen sharply, if the broader market has also fallen sharply, it may just be that individual stocks have fallen. However, if the market is normal, and individual stocks have fallen by more than 5 points without warning, it is likely that there is a bearish situation, and the market makers give up the panic selling that caused the lock-in market, resulting in an immeasurable drop.
Infinite decline in an uptrend
The immeasurable decline in the upward trend is more common in the early and mid-term, and the decline in the later period is almost always quantitative. The following analysis is from two aspects:
1. The immeasurable decline in the early period was mainly due to the main suppression and acquisition. It is difficult for the main force to attract the attention of the followers in the low position. Before getting enough chips, in order to prevent the stock price from rising too fast, the main force will appropriately suppress the stock price and let the retail investors who think the rebound is weak to hand over their chips. In this case, the magnitude of the immeasurable decline is very small, generally within 2 points.
2. The immeasurable decline in the mid-term, mainly due to the main shuffle. When the main position is completed and it starts to rise, a certain profit will gradually accumulate, and the trading volume will also be moderately enlarged. In order to alleviate the selling pressure of the market outlook, the main force may suppress the stock price downward, and generally choose to shoot when the market adjusts. If the washing time is longer, the trading volume will gradually decrease until it is infinite.
Infinite decline in a downtrend
It is normal for the trading volume to gradually shrink in a downtrend, and the lower the trading volume is towards the end of the downturn. In the early stage, the main players will continue to ship, the stock price drops rapidly, and retail investors dare not enter the market easily, and the transaction volume continues to decline. In the middle and late stages, the main bargaining chips have almost been cleared, mainly due to the game between retail investors, and the stock price began to fall, until there was a phased bottom, and it entered an immeasurable state. If the decline at this time is small, it may be a normal decline in the process of bottoming. But if there is a decline of more than 3 points, be careful of the accelerated decline after the end of the stage is broken.
In general, if the bottom of the immeasurable decline or the immeasurable decline in the mid-term before the rise is small, part of the position can be bought. The immeasurable drop at the bottom or the immeasurable decline in a downtrend is best not to participate, otherwise it is easy to copy the bottom half of the mountain.