If the stock price surged yesterday but suddenly fell back today, how can we determine whether this is a normal daily retracement or a signal to sell?

Is it a normal rollback? It depends on whether it meets two criteria:

Is the decline in the first round more than half of yesterday's increase.

Is today's trading volume more than a quarter of yesterday's trading volume.

If both answers are "yes", then we cannot view it as a normal rebound, and there is a high possibility of a continued decline in the future market. We can consider shipping; On the contrary, if the rebound does not exceed these two criteria, then it should only be a brief rest and there is no need to panic.

Hu Liyang: How to seize the rebound?

Being able to meet both the price and quantity standards below is considered a strong rebound, not a trap, and can be purchased.

1、 The magnitude of today's rebound has exceeded half of yesterday's decline.

2、 Today's trading volume is more than one-fifth higher than yesterday's trading volume.

3、 If the stock market experiences a rebound after several consecutive days of sharp decline, investors can use a progressive calculation method to make judgments.