How to use call auction for stock selection? Practical Skills

For short-term operations, it is often necessary to make full use of the time of the call auction to conduct stock selection operations, because the trend of the stock price during the call auction stage largely represents the direction of the stock price operation on that day. And short-term traders are trading in the short term, even indirectly doing T+0 trading, so there is no need to consider and pay attention to fundamental information. However, despite this, we still need to strictly set stop loss and take profit levels before operating to avoid being too greedy and fearful.

How to use call auction for stock selection? We need to focus on the following points when selecting stocks through call auction: 1、 The standard for judging the high opening of stock prices During the call auction period, it is best for the stock price to open high within 1-4 points. If it is higher than this range, we need to be careful that the stock price may open high and fall low. We analyze based on the strength of the market. Stocks that open high during the call auction period have a higher probability of reaching the limit up, especially those that open close to 4 points high. In a weak market, it is best not to operate because after the high opening, it is likely to fall. 2、 Limit up experience The focus of our selection is on stocks that have previously hit the limit up or have a more active trend of hitting the limit up. 3、 The current position of the stock price It is best to choose stocks that are in an upward trend or have just started to rise at the bottom. If the stock is in an upward trend, the stock price should move upwards along the 5-day moving average, and should not fall below the 5-day moving average during retracement. In addition, stocks that receive strong support near the 10 day moving average or support at other important support levels are also acceptable. 4、 Focus on fundamental and technical aspects On the fundamental level, stocks with high market share and strong competitiveness perform well, while on the technical level, stocks that conform to the bullish trend are the best. 5、 Pay attention to turnover rate and volume ratio There is actually no clear definition standard for this, and it is often determined based on the size of the circulation disk. It is usually best to choose small cap stocks with relatively small circulating stocks.