What do you mean by contraction and rebound?

Shrinkage rebound means that the short-term financial strength of the stock is in a recession stage, and the stock may reverse the market. Shrinkage rebound may be caused by the stock's word board or rapid daily limit, or it may be a slight rebound in low shrinkage caused by the weakening of short-term strength.

If the stock price has a word board or a shrinking rebound formed by the rapid daily limit, then the high probability is that the stock has good news recently or the market hot money is speculating, and the stock price is likely to go out of the reverse upward market.

Different disks or stocks will give different market signals when shrinking and rebounding.

1, shrinkage rebounded daily limit

Because A shares have a daily limit of 10%, if a stock has a daily limit of one word or a rapid daily limit, it will be blocked. At this time, individual stocks are blocked, and investors in the market will basically not sell, so even if there are many people who want to buy and no one sells, there will be no turnover. This is a kind of news that the price is rising and the turnover is shrinking, which means that the disk or individual stocks are good, and the funds are promoted to stimulate the price increase.

2. There was a slight shrinkage rebound in the box adjustment.

If the disk or individual stocks are in a downturn, the strength of the empty side will gradually weaken, and the selling pressure of the disk or individual stocks is small. A small amount of long-term funds can promote the rise. The trading volume of the disk or individual stocks was less than that of the previous period, while the stock price rebounded slightly. This shrinkage rebound shows that the disk or individual stocks are in a downturn, and the short-term multi-party strength is weak, which is easily affected by market funds and market news, and the follow-up trend is uncertain.

3. The downward trend rebounded slightly.

After the stock price or market turnover fell in the previous trading days, the turnover of the disk or individual stocks decreased, while the price rebounded slightly because the phased stop of selling was driven by a few markets to make more money. This shrinkage rebound shows that selling has gradually eased, but the overall trend has not changed. In the future, the disk or individual stocks are likely to continue to adjust downwards.

What do you mean by shrinking after the plunge?

The increase in shrinkage after the plunge means that the negative factors of the plunge on investors have not been completely eliminated, and most investors still maintain a wait-and-see attitude, which also shows that the current market sentiment is relatively lax and investment sentiment has not been stimulated.

In this case, investors can pay attention to the market outlook and analyze the future trend of stock prices. Generally speaking, if it is a period of shrinking after the plunge, the stock price may be in a consolidation stage in the future. In the consolidation stage, investors can operate in bands. In addition, many stocks will rebound slightly after the plunge, but the rebound is limited, so it is shrinking.

If the stock price shrinks after the plunge, it may also be because there is a big single pressure plate above, that is, the main funds do not want the stock price to rise too fast, so they will shrink the stock price in the form of a big single pressure plate. In this case, investors can buy appropriately and hold shares patiently.