Identification and application of turnover:

Only when the stock price is on an upward trend, do we need to pay attention to the size of the turnover rate, also known as the turnover volume. This is because during a large-scale downward trend, there is no need for trading volume coordination. As long as the price moving average is short and suppresses the downward movement of the stock price, regardless of whether the trading volume increases or decreases, the probability of the stock price inertia falling in the future is relatively high. Therefore, investors do not need to pay attention to and study the stock price decline market.

However, the upward trend of stock prices is different, especially when the stock price crosses an important resistance level during the upward trend. For example, if the stock price crosses the neck line of the negative reversal high point in the early stage, more turnover must be provided to resolve the unwinding of the negative reversal high point in the front of the stock price and the short-term profit taking in the relatively low position of the stock price. When the stock price crosses an important resistance level upwards, the trading volume can only be fully changed, and the stock price is likely to continue to rise.

The two trading volume techniques analyzed today, also known as pre closing or post closing washout by investors, refer to the sudden increase in daily trading volume at these two positions, which belongs to the benign trading volume washout behavior during the rise of stock prices. As long as the stock price can hold the low point of the daily K-line of trading volume in the future, the probability of continuous rise in the stock price is still relatively high. Usually, the daily turnover before or after the stock price closes is around 10% or at least greater than 8%. And after changing trading volume, the stock price is prone to a phenomenon of shrinking volume and washing out the market.

Technical graphics for turnover:

Firstly, draw a water pressure neck line at the high point of negative reversal in the early stage of the stock price, and observe the change in trading volume after the stock price attacks near the neck line. If the trading volume suddenly increases to 8% or more on a certain day, the increased trading volume on that day is considered as the turnover volume on the way to the upward trend of the stock price. If the sudden increase in trading volume of this transaction does not exceed the horizontal neck pressure level of the corresponding K-line closing price on the same day, it is called pre closing turnover. On the contrary, if the sudden increase in trading volume corresponds to a candlestick closing price above the horizontal neck level, it is called post closing turnover.

Turnover operation strategy:

The upward breakthrough of the stock price through an important checkpoint and the occurrence of a large turnover volume belong to the phenomenon of benign stock price rise. Without sufficient turnover, the stock price will be difficult to break through the important resistance level on the way to the upward trend. However, turnover volume can only indicate the desire of the stock price to rise through the checkpoint. At the same time, the large trading volume near the stock price checkpoint also indicates that there is a large divergence between long and short positions at this point, and the sudden amplification of turnover volume will activate the stock nature and attract market investors' attention. At the same time, it will also attract short-term market investors to follow the trend and buy.

At this point, a contradiction arises: the main force wants to attract market attention, but is unwilling to let too many short-term investors follow the trend and enjoy the benefits of fishing before the stock price rises. So after a sudden increase in turnover, it is often accompanied by a decrease in stock price volume and market washing. Therefore, it is recommended that investors do not rush to intervene on the day of turnover in practical operations. It is important to patiently wait for the end of the stock price's trading volume reduction and washing before intervening. Additionally, investors should be aware that trading volume before or after the stock price closes may not necessarily lead to a successful rise in the future. Therefore, after investors intervene, they also need to strictly set stop loss levels.  

Precautions and classic cases for changing hands before closing:

The so-called pre closing turnover refers to the large trading volume that occurs when the stock price is close to the previous high point and the closing price has not reached a new high. Since the stock price has not reached a new high, there is naturally no effective breakthrough. Therefore, while the trading volume increases on a single day before the closing, there may be signs of the stock price breaking upward, but at the same time, the stock price may also encounter obstacles and fall back, resulting in a top pullback without success before the closing. Therefore, investors who are involved in trading volume before closing should always pay attention to the construction of a double top trend in stock prices. Once they discover that the stock price has dropped below the lowest price of the daily candlestick due to trading volume, they should unconditionally stop loss and exit the market as soon as possible.  

Classic case of changing hands before closing:

During the upward trend of the stock price, when it breaks through the negative reversal pressure level of the previous stock price peak, the daily turnover rate of trading volume increases to over 11%. Then, the stock price shrinks and consolidates for two days, and once again relies on turnover volume to launch a rapid upward trend.

Precautions and classic cases for changing hands after closing:

The so-called post market turnover refers to the large trading volume that occurs after the stock price breaks through an important resistance level. Due to the fact that there are real and fake cases of stock price breakthroughs, real market breakthroughs generally manifest in two trends. One is that although the stock price breakthrough is accompanied by short-term volume washing, the lowest point of the washing candlestick usually does not fall below the support level of the neck line, and then attacks upwards again. Another type of true breakthrough is when the stock price breaks through without taking a break, and continues to rise in one go. However, a false breakthrough is different. Since a false breakthrough is a bullish trend, the market will inevitably fall below the neck line in the future. Continuously callback downwards. So investors who switch trading volume after closing can still boldly operate as long as they strictly cut losses at the neck level. Obtain a significant increase in profits after the stock price breaks through the neck line.  

Classic case of changing hands after closing:

On the way to the upward trend of stock prices, after the closing price broke through the previous peak of negative reversal of stock prices, there was a turnover volume accompanied by trading volume. Subsequently, the stock price took a short break above the neck line level and entered a bullish accelerated upward trend again.