How to use the daily limit up board to catch big dark horses and practical skills

1. If there is no trading volume at the limit up, it means there is no selling, and there is still a possibility of further upward movement or even further limit up. Be cautious in chasing the rise.

2. If the trading volume increases by the limit up, it indicates a divergence between long and short positions. The larger the volume, the more differences there will be. The future trend depends on the follow-up strength of long and short positions. There are two situations: if the selling on the limit up board is greater than the buying, then the future is favorable for a bearish trend. If buying exceeds selling on the limit up board and buying continues to dominate, it is beneficial for the market to continue to be bullish in the future. As long as there is sufficient follow-up buying, there is still room for chasing the price even after placing a large amount on the limit up board. Whether to sell a large amount of stocks on the daily limit up board needs to be analyzed in conjunction with fundamentals to determine the normal price positioning and help assess the current price level.

3. The price of the limit up board often constitutes an important technical level. If a certain limit up price falls below in the future, it often becomes a resistance level. If the stock price cannot effectively pass through this position by reverse drawing, then the vicinity of this position becomes a bearish price range. On the contrary, if a certain limit up price is tested in the future and effectively supported, it proves that this position has become a short-term support level. If the stock price tests this position again and cannot effectively fall below it, then the vicinity of this position becomes a price range for buying on dips.