1. Is the market in the early stages of an upward cycle.
2. Which sector is favored by macroeconomic policies and public opinion guidance, what are the representative stocks of that sector, and whether the trading volume is significantly higher than other sectors. Identify 5-10 target stocks.
1. Trading volume helps to predict when a trend will reverse: a high volume long bearish line is a sign of a top, while extremely shrinking trading volume indicates that selling pressure has disappeared and is often a signal of a bottom. Mnemonic: Price stability and quantity contraction are the bottom.
2. The continuous trading volume of individual stocks exceeding 5% is a clear sign of active main players. Short term trading volume is high, and the stock price has good elasticity, so short-term trading opportunities can be sought.
3. After a large volume increase and sideways consolidation, a stock shows no volume increase, which is a sign of high concentration of main chips and controlling the market to rise. At this time, transactions are extremely rare, which is a good opportunity to buy in the middle line.
4. In the event of a sudden high and large bearish candlestick, the situation is unclear, and immediate elimination is necessary to prevent major bearish factors from leading to a catastrophic decline.