Technical analysis: The role of daily and monthly charts in stock selection

A few days ago, I happened to come across some knowledge fragments from experience-sharing conversations, and I organized and reflected on them myself.

Known:

1. He said the monthly chart is for platform accumulation, and the first board hit over eight points multiple times.
2. I see he mostly uses full positions.
3. He can do red 4 green 1 like this.
4. Regarding the chart pattern, when we hit the board, it crosses the zero line.
5. I see his shadow in my own experience.
6. No wonder he said Ningbo Construction & Investment isn’t good.
7. Tripled…
8. He cuts tickets daily, occasionally big positions, but mostly buys at the end of the session.
9. He’s a short-term, chart pattern trader.
10. He said the monthly K-line indicates accumulation.
11. Yes, he said it helps avoid traps; the first board above the zero line has a higher success rate, tolerance, and premium.
12. So did he just say nonsense? He tripled in three months, obviously has core holdings he didn’t mention. Damn, the first board was successfully taken, and he’s holding now.
13. Don’t trade stocks below the daily zero line—this is his original advice.

…

My thoughts are as follows:

a. “He said the monthly line is for platform accumulation, and the first board hit over eight points multiple times.”

I think this can be understood as a screening factor when selecting stocks, i.e., predicting future growth potential or height. Of course, this is just a probability; the actual trend may rise, stay flat, or even fall.

[Taogu Ba]

b. “No wonder he said Ningbo Construction & Investment isn’t good.”

Why does he make this judgment? Let’s look at its monthly chart:

Is it because the trapped positions on the left side of the monthly chart indicate increased difficulty in pushing up?

Now, look at the daily chart:

c. “Yes, he said it can help avoid traps; the first board above the zero line has a higher success rate, tolerance, and premium + stocks below the zero line on the daily chart shouldn’t be traded—this is his original advice.”

Let’s look at the real trend charts:

First, an example where Shun Na’s first board is above the daily MACD zero line:

Another example, Tianji has its first board below the daily MACD zero line:

The MACD double lines are below the MACD zero line, indicating the current market is in a bearish trend, overall weak, meaning the stock’s “momentum” has turned negative, and market sentiment leans bearish.

…

The above analysis was written before the market opened yesterday (Tuesday). After Tuesday’s opening and today (Wednesday), the trend has yet to unfold.

Now, after Wednesday’s market close, the daily chart trend has also emerged.

Those interested can compare and see.

Disclaimer: Not stock recommendations, not trading advice, just recording my own insights and reflections. Please do not trade based on this. Investing involves risks; enter the market cautiously!