There is a saying in the market that the relationship between quantity and price is like the relationship between water and a ship, where water rises and the ship rises. The only factor that can lead to a rise in stock prices is definitely the driving force of the main capital. So, with enough incremental funds entering the market, the stock price can rise.
In general, one formula that investors can use is: What is the existing trading volume (number of traded shares)? (240 minutes? The number of minutes from 9:30 am to the time of market observation). The larger the predicted trading volume on that day compared to the previous trading day, the greater the possibility of incremental funds entering the market.
When using this formula, it should be noted that the earlier the time, the greater the deviation from the actual trading volume of the day. Generally, the trading volume of the first 15 minutes, 30 minutes, and 45 minutes is used to predict the trading volume of the whole day. If it is too early, it will be distorted, and if it is too late, it will lose its predictive significance.
Tip 2: Look at the relationship between stock prices and overall market volatility
If the stock price is at a mid low level in terms of form, short-term technical indicators are also at a mid low level, and the stock price is far away from the resistance level, then the daily increase may be significant.
If the stock fluctuates horizontally in the small fluctuations of the stock price regardless of the intraday rise or fall of the market, then once it rises, be careful to intervene decisively.
If the market experiences a sharp decline and the stock remains in a sideways position with reduced trading volume, then once the market stabilizes, there is a greater possibility of an upward trend.
Tip 3: Check if there are consecutive large buy orders in the market
If there are consecutive large buy orders in a stock during trading, the sell orders are relatively small, and the buy orders are often executed at a price higher than the sell price, then the time for a rally has come. Moreover, the higher the buying commission price is from the selling price, the greater the chance of upward movement in general.
It is worth noting that if the trading volume significantly increases and the stock price actually decreases, we should be highly vigilant about whether institutions are making large shipments. This can be judged based on whether there are large sell orders during the trading session. In addition, releasing large orders at a high level can be a ripple even if it is urgent. The stock market is complex and intricate, can you travel smoothly all the way?
Tip 4: The big selling list is eaten up
The trading volume of individual stocks is light, and there may also be large sell orders. If the daily trading volume is within 1 million shares, there will inevitably be some orders of 30000 to 40000 shares or more, which is completely normal.
It is worth noting that once the price of these sell orders is close to the transaction price, they are actively bought up, which may indicate that the main players are foodies.
Why? Because before the stock price rises, the main players do not want others to get chips at a relatively low level, so they will try to buy as much as possible. Once the stock price successfully rises, these relatively low bought chips become the main force's own profit opportunities.
Tip 5: Non market large orders appear during trading
If there are orders of 100000 shares, 150000 shares, or even 300000 shares or more in a market with a daily turnover of 1 million shares, and not just once or twice, and the price of the pending order is far from the transaction price, often above the third price, and sometimes the order is cancelled, there is a feeling of ambiguity, then this type of order may be intentionally placed by the main force.
Since the main force has not left the field, the stock price may rise or fall, rather than consolidation. Of course, it is good for the stock price to rise, and even if the main force is preparing to attract a large number of shipments, it may still create a market trend before shipment, opening up a space for shipment.
Tip 6: The overall market is stable, but individual stocks first suppress and then pull
When the overall market trend is stable and there is often significant selling pressure in individual stocks, leading to a gradual decline in stock prices but a rebound in the closing market, investors must pay attention to the intentions of the main players. Because without intentional pressure from the main force, such a trend that deviates from the overall market is difficult to occur in a market with light trading volume, at least the stock price is unlikely to rebound in the closing market.
Firstly, this trend is sure to make short-term speculators cut their losses and clear their positions, and some of the larger sell orders that appear during the trading session may be the main force's reversal.
Secondly, the retail investors who should have cut meat have all left, and the main force has poured the chips bought at relatively high levels into the market, lowering the holding cost. After a slight reduction in volume and consolidation, the stock price may be boosted.
Tip 7: Pulse like uptrend during trading
The so-called pulse style rise refers to the sudden departure of stock prices from the overall market trend in a relatively short period of time and their upward movement, followed by a rapid return to their original position. Along with this wave of market trend, there is some amplification in trading volume but no obvious reversal trace.
In fact, this may be a trial session for the main force before the official rally, or it may be that the main force wants to get more cheap chips, and at the same time, shake up the meat cutting plate, and then choose an opportunity to rally.
This situation indicates that the main capital is relatively sufficient and has confidence in the rise of stock prices.