Recently, we have ushered in a long-awaited bull market, during which we have seen a large number of stocks hitting the daily limit up.

But it is indeed very difficult to truly capture a stock that has hit the daily limit up.

For most investors, a limit up board is a rare occurrence.

We all know that not every limit up board can be chased, and chasing a limit up board requires taking on great risks.

So when is it better to hit the daily limit up? Now let's study under what circumstances the limit up can be followed.

A limit up board supported by performance and themes

Overall, stocks with good fundamental performance and recent market themes can generally be pursued when they hit the limit up at a low level.

If the sector where the stock is located is relatively active and has a certain degree of sustainability, investors can focus on it.

In addition, it was found from the fund flow indicator that there is a continuous inflow of funds into the stock. Once this type of stock suddenly reaches the limit up on a certain day, the stock is about to start and there is a large upward space in the future, which can be intervened.

The daily limit up after the release of all positive news

A certain stock may experience a wave of upward movement driven by positive news during a certain period of time.

After the positive news is realized, the stock price often experiences a strong adjustment.

But after a period of adjustment, the stock price will return to stability.

The first limit up board that appears after the stock price stabilizes is usually a signal for the stock to restart.

So the first limit up after adjustment can be followed up.

But when following up on such limit up boards, we must pay attention to the fact that stocks need to have trading volume to cooperate.

Only the gradual increase in trading volume signifies the reopening of the market.

The limit up board during the continuous upward phase

A certain stock quickly entered a strong trend in the short term, and its stock price closed continuously at a bullish line in a very short period of time, while the trading volume rapidly increased.

When the increase reaches around 20% compared to before the launch, the limit up board that appears at this time can tentatively follow up.

The stock price has risen by 20% in the short term, indicating that the determination of the main force to pull up is very clear, and there will be greater room for the future market.

Try not to chase the limit up in the trend of oversold rebound

If a stock has experienced a rapid decline in the early stage and has reached the limit up after hitting the bottom, people should not rush to follow up, but should observe carefully for a period of time.

Because unless there is a significant reversal of positive news, the downward trend is relatively difficult to change for a period of time.

The limit up that occurs during an oversold rebound can only indicate that the downward trend may temporarily come to an end, but it is still unknown whether there will be a technical reversal.

So investors who hit the daily limit up in an oversold state should be cautious. Don't be too hasty.