Characteristics and practical skills of dark horse stocks

Generally speaking, an increase in the volume of price increases and a decrease in the volume of price decreases are the normal forms of operation for the overall market or individual stocks. When the index or price is in an upward phase, the trading volume is often large; When the stock index reaches its peak, trading volume shrinks sharply.

However, dark horses often go in the opposite direction. They will significantly increase their trading volume at low levels, even exceeding the trading volume at the beginning of the period. This situation is called "massive volume over peak", indicating that the stock is bullish in the future.

The characteristics of this form are:

1. There is a significant trading volume during the initial construction phase (the top within one year).

2. In the early stage, it has been in a downward trend, and currently there is a trend of stopping the decline and stabilizing. Recently, it has released a huge amount at a relatively low level, with daily trading volume exceeding the trading volume at the peak, and the turnover rate generally exceeds 10%. At this point, placing a large amount at the bottom can be considered a sign of the main force's large-scale entry. At the same time, the amount at the bottom exceeds that at the head, which is extremely beneficial for resolving the resistance at the head.

3. After releasing a huge amount, the stock price continued to stabilize and quickly began to rise. This usually indicates that the stock price has a solid foundation and there is still significant room for growth in the future, which can be followed up in a timely manner.

Some dark horses can often find signs in terms of volume when absorbing their main force, while some main forces prefer to absorb silently without any obvious increase in volume at low levels. The obvious feature of these stocks' upward trend is a contraction in trading volume, and even a decrease in trading volume as they continue to rise. The main force can boost the stock price with a small amount of transactions, thus revealing reliable information such as:

1. The main force has fully controlled the market and the chips are highly concentrated. The decision on whether to increase or decrease is up to the main force;

2. Rising and shrinking volume indicates that the main force has no possibility or willingness to distribute, and the future market will still be bullish. If there are no obvious head characteristics, it is advisable to hold for the long term.

What kind of trading volume is considered as a decrease or increase in volume? This can be divided into several situations:

1. The more the stock price rises, the less transactions there are compared to the previous period, indicating that as the stock price rises, the number of people willing to sell decreases, reflecting the strong reluctance of the market to sell;

2. The turnover rate is relatively low, with a daily turnover rate generally not exceeding 10%. A sustained upward trend can be maintained with very little trading volume, indicating that the upward trend is difficult to change in the short term;

3. When the trading volume rises, it remains stable, and the daily trading volume is relatively close for a period of time without significant fluctuations.

When entering the top stage, the intraday performance is as follows: a large amount is released during the upward process, and the turnover rate generally reaches over 30%, with obvious signs of main players reducing their positions.