1、 Get to know the limit up board
1. Limit up and limit down system
The limit up and limit down system originated from early foreign securities markets. It is a trading system in the securities market that appropriately limits the range of price fluctuations for each security on the same day in order to prevent the sharp rise and fall of trading prices and curb excessive speculation. It stipulates that the maximum fluctuation range of trading prices on a trading day is a few percent above or below the closing price of the previous trading day. The current limit up and limit down system in China's securities market was announced on December 13, 1996 and implemented on December 26. It stipulates that the fluctuation range of securities shall not exceed 10%, and the fluctuation range of ST stocks shall not exceed 5%.
In fact, at the beginning of securities listing, the limit up and limit down range in China was 1%. After it was lifted on May 21, 1992, the Shanghai Composite Index rose by as much as 105% that day. Later, in order to prevent significant fluctuations in trading prices, the limit up and limit down system was restarted at the end of 1996.
2. Limit up board
The limit up board refers to the upper limit of the daily trading price set by the state for securities trading. If a stock reaches the limit up, it indicates that the current buying power is quite strong, and the bearish side is completely dominant. On the market, it is common to buy a heavily sealed order, keeping the price firmly at the limit up, while the seller's market is often empty, with even a slight sell order being taken by the buying market.
3. The limit up board and dark horses
In the securities market, there are often some strong market makers who plan to operate certain stocks, which skyrocket wildly for a period of time, becoming the leaders of the sector and the star stocks of the market. This is what investors often call a dark horse. Observing the K-lines of these dark horse stocks, most of them have multiple limit up boards. So there is a rule in the securities market: dark horses all start from the limit up board, but not all stocks on the limit up board are dark horses. That's why one of the strategies in Black Horse's stock selection is to look for stocks from the limit up board.
Call auction hits the daily limit up
When we use call auction to directly hit the daily limit up in the short term, we must choose stocks that open high, indicating that multiple parties are in a strong position on that day. But this alone is far from enough. At the same time, we also need to consider factors such as the market, sectors, individual stocks, and the timing trend and volume ratio of call auction. The specific details are as follows:
1. Market Index
① The 60 day and 120 day medium to long-term moving averages of the overall market index are upward, ensuring a positive trend in the medium to long term. The overall trading environment is relatively warm, which is conducive to short-term operations. If the mid to long term trend of the market is downward and suddenly influenced by some favorable factors, causing an early high opening, especially when the high opening is not far from the medium to long term pressure line, it often opens high and falls low. At this time, it is absolutely not advisable to intervene. On the contrary, it is an opportunity to escape at a high price.
② It is best for the overall market index to open high on the same day, indicating that the market is bullish and conducive to operations. If there is no high opening, but at least it should be opened flat, not low opening.
③ The amount of transactions in the large-scale call auction should be large, and there should be more virtual trading volume at the opening. Indicating active market trading and warm popularity.
④ The stimulation from positive news such as domestic and foreign markets and policies is stronger.
Eight key points of individual stock trends and forms
① The 60 day and 120 day medium to long term moving averages of individual stocks are upward, indicating a good trend in the medium to long term, and the 5 day, 10 day, and 20 day short to medium term moving averages are in a bullish sequence. It is best to focus on individual stocks that are in the initial or main upward phase.
② After the jump and high opening, there is no or few resistance factors such as structural pressure level, chip intensive area, and psychological pressure level at the front high point in the price range at the early stage (that is, on the left side). At the same time, there should be no suppression of the medium and long term moving average. It is better to have a shape vacuum area or a chip real space area. This has a certain upward potential, and secondly, the selling pressure is relatively small, making the upward trend relatively easy and sustained.
③ The transaction amount of individual stock call auction is large, with a huge volume ratio. Normally, it is at least 3 times the volume, often as high as 6-10 times the volume, and sometimes even as high as 30 times or even 100 times.
④ Before jumping high, it is best to go through the process of increasing volume and then decreasing volume before starting to increase volume.
⑤ In terms of the frequency of jumping high, it is best to jump high for the first time to ensure safety while maximizing profits. If it is in other extreme situations, such as jumping high to break through the sustained gap of the dark horse form, it can be excluded.
⑥ In terms of stock characteristics, there should have been a strong bullish trend or a limit up board before, and individual stocks have a limit up gene and are more active in terms of stock characteristics.
⑦ When a stock has experienced a significant increase after a wave of upward movement, caution should be exercised when opening high at a high level, as there is a suspicion of opening high in the morning to pull out price space and then selling aggressively downwards.
⑧ The amplitude of jumping high can be divided into three types: a slight high opening below 2%; A 2-5% high opening is a significant high opening; A 7-10% high opening is a huge high opening, and the larger the opening, the stronger the performance of multiple parties and the greater the upward momentum. But if the opening is too high on that day, the profit margin after intervention will be small. At the same time, if the opening is not too high, it is worth discussing with various forces. So under normal circumstances, it is necessary to search for stocks that open 2-5% higher for short-term sniping. (When the overall market and sectors are in a bull market and individual stocks are in a strong form, it is possible to intervene in stocks with huge high openings, which often have a strong upward trend in the future.)
