ATFXWhich is better to reduce the limit or increase the limit? Invest away from scams

There may be a limit on the rise and fall of stocks, and there are many types of limit on the fall of stocks. Shrinking limit and increasing limit are typical and common types of limit drops. Let's take a look at the analysis of both.

Which is better to reduce the limit or increase the limit?

Both shrinking and increasing the limit are not good, as users will face varying degrees of losses when falling the limit. If the impact of shrinking or even falling the limit during the early or mid-term of an increase is relatively small, but if the impact is greater, the impact is greater.

Due to the possibility that a contraction or decline may be a washing behavior, and a decrease in trading volume indicates that the chips have completed changes at high levels, leading to a significant decline in mainstream stock prices. When the stock price is at a high level, the impact of cutting the limit by volume is greater. However, if it is due to bearish news that leads to a single word drop in the limit, then the trading volume is reduced at this time. However, bearish news has a greater destructive effect on the stock price, so it is also very bad. It is best to stop losses in a timely manner.

What does shrinking below the limit mean?

Shrinkage limit refers to the limit for individual stock prices to fall, with relatively low trading volume. Compared to the previous trading day, the closing time is relatively small, and even if the stock price falls below the limit, it is still very!There is still a lot of room for individual stocks to decline despite user purchases. Of course, it is also possible for the main force to use the contraction limit to attract funds. That is to say, when the main force opens the market, they sell some chips to suppress the stock price, make the stock price limit loose, and sell them. The main force buys the limit at a low price to reduce the cost of the position

What are the characteristics of large-scale limit trading:

1The stock price must be outside the low level, and when it falls below the limit at a high level, it is usually for shipping, not for trading. At the bottom, the purpose of the trading volume limit is to suppress some non cutting users. After a round of down limit trading, some users cut the meat, while non cutting users hold firm shares, so the market is expected to rise in the future;

2When the stock price falls below the limit, there is generally no negative news;

3When washing down the limit, the market may open during the period, and the lockdown is relatively small, and the position of the stock price will not be very high;

4When the limit falls, some small orders are gradually buying, and the trading volume will continue to shrink. When the land trading volume appears, the washing is over. After the volume drops below the limit, the washing time of the limit is maintained for a short time, usually stabilizing and rebounding on the same day, or starting to open high and rise the next day.