Abnormal stocks refer to alternative individual stocks that are significantly different from the overall market trend. If the market experiences a sharp decline, abnormal stocks will rise against the trend; When the market rises, the volatile stocks emerge from their own independent market trend. Abnormal stocks belong to a relatively special category of individual stocks, which can be either in terms of quantity or price. The exchange classifies stocks with daily fluctuations of more than 7% and fluctuations of more than 10% as abnormal stocks, and also classifies stocks with significant high or low opening and sudden increase in trading volume as abnormal stocks.
In the increasingly severe differentiation of individual stocks in the market, large bull stocks can often emerge from abnormal stocks. If we can find such a large bull stock in abnormal stocks, it can improve the accuracy of operations and ensure the maximization of profits. However, there are also traps in volatile stocks, and if you are not sure, you may fall into the trap designed by the market maker, causing significant operational errors.
One is the abnormal stock with high trading volume, jumping short and opening low. At the opening of the morning session, a stock suddenly experienced a gap and opened lower by more than 5 points, and millions of shares were traded during the call auction stage. We need to closely monitor this abnormal situation. If such abnormal stocks are not due to significant policy changes or systemic risks in individual stocks, then they can be considered as a precursor to market manipulation. A large volume of jumping short and opening low indicates that the banker is still potentially involved and has not been eliminated. Opening low is clearly a behavior of shaking positions and washing away funds, clearing obstacles for the next upward trend.
The second is the abnormal stock with a significant gap and high opening. Generally speaking, stocks that hit the limit up the day before will have a short opening and a high opening the next day. However, for stocks that did not hit the limit up the day before, if they significantly jump short and open high the next day, there are two possibilities: one is the trial trading action of the market maker to see how big the selling above is and whether it is suitable for boosting the stock price; The second possibility is that the market makers intentionally make upward movements to attract small and medium-sized investors to follow suit, with the intention of selling. This kind of high opening can easily lead to low walking.
The third is the tail market suppression, with the K-line leaving a long bearish candlestick and rapidly rebounding stocks the next day. Investors may sometimes find that some stocks have a stable trend throughout the day, but suddenly drop in volume towards the end of the day, leaving a long bearish candlestick on the candlestick, and easily recovering lost ground the next day. If the 30 day moving average of this stock is in a clear upward trend and the stock price has not increased significantly, it can be fully considered a typical suppression of money laundering behavior.
The fourth is the sudden increase in volume of stocks without reason. Some individual stocks suddenly saw an abnormal increase in trading volume during the trading session, with thousands of lots of buy and sell orders appearing at the market, with a daily turnover rate of over 20%, giving the impression that they were trading. In fact, in addition to a significant increase in trading volume, there is also a clear phenomenon of stagflation in the stock price of these volatile stocks, which can be considered as a deliberate attempt by market makers to attract small and medium-sized investors to participate and create a false impression of increased trading volume. If neither the 30 day moving average nor the OBV indicator shows an upward trend at this time, it can be further confirmed as a tempting behavior of the market makers, and small and medium-sized retail investors must not participate.
The fifth is a fishing rod that has continued to rise moderately, but occasionally experiences sudden drops, resembling a stock with unusual movements. Some stocks showed a 45 degree upward trend during trading, with continuous small bullish lines on the daily candlestick chart, but occasionally experienced a downward trend during trading. For such a volatile stock, it is advisable for small and medium-sized investors not to participate, because you simply cannot figure out when it will truly plummet. For stocks that we cannot understand, it is better for small and medium-sized investors not to touch them and to observe them calmly.
