The main approach to seeking opportunities in low-priced oversold stocks follows the strategy of price game theory. Stocks with a greater decline than the overall market during the same period, as well as those with significant comparative advantages in the stock price within the entire market and among similar stocks, are the focus of tracking.
Technically speaking, trading volume is crucial for assessing the potential of low-priced oversold stocks. It is best for individual stocks to experience a high degree of volume contraction during their decline, which belongs to the category of volume contraction and short selling. Once funds attack, it can easily lead to a V-shaped reversal.