A stock saying goes: "Anything in the stock market can deceive people, only trading volume can't deceive people." Today I will share with you some relevant knowledge about trading volume stock selection.
1. The principle of stock selection by volume
1. The position where the volume appears determines the trend of the stock price. After a long-term consolidation, there will be a continuous huge volume and a small stock price Rising stocks can step in boldly, and can't hold back.
2. Don't chase stocks that have a huge amount of stocks in the high price zone but have little stock price changes.
3. One of the tricks to choosing dark horse stocks is that according to changes in trading volume, stocks that can rise sharply must have a large bottom momentum, otherwise they will not rise sharply. The greater the momentum of the bottom of the stock, the stronger the rise.
4. Attention must be paid to the bottom of the arc of the trading volume. Pay special attention when the average volume of the trading volume goes flat. Once the trading begins to gradually increase and the stock price rises slightly, you should buy immediately.
5. The key to making a profit in the stock market lies in stock selection. You can't just look at the general trend to make money. Otherwise, it is easy to "earn the index and lose money".
6. Trading volume is a thermometer of stock market sentiment. Many stocks have skyrocketed not because of fundamental gains. They are purely caused by the supply and demand of chips, but the huge changes in trading volume. Measure the potential of the stock price change.
7. During the rising process, if the trading volume enlarges and the price keeps rising continuously, the upward trend remains unchanged.
8. In a downtrend, if the trading volume is enlarged, it indicates that the selling pressure has not decreased, and the price keeps falling, the down pattern remains unchanged.
9. In the process of rising, if the trading volume increases substantially, but the price does not continue to rise, it indicates that the resistance is increasing, which is a sign of a reversal.
2. Trading volume is a window to reveal the main intentions
In the case of stock prices that are easily manipulated by large funds, trading volume becomes small and medium investors The most powerful "weapon" in hand. As a small and medium investor, as long as you can carefully study the subtle changes in trading volume, it is easy to discover the true intentions of the main force. The following is an explanation for the majority of investors on how to use trading volume to identify the main intention.
(1) Using the size of the transaction volume to discover the main intentions
The size of the volume change reflects the activity of the market through the turnover rate. . Generally speaking, the greater the trading volume, the less the market’s recognition of the current stock price, and vice versa.
(2) Use the abnormal phenomenon of trading volume to observe the main intentions
There is an abnormal phenomenon in the trading volume, which mostly indicates that the market is about to undergo major changes. When the stock price is at the relatively bottom area, if the stock price does not rise significantly while the trading volume is enlarged, it means that the main force is actively engaged in fund-raising; on the contrary, if the stock price is at a relatively high level, while the trading volume is enlarged, the stock price However, there has not been a significant decline, so this indicates that the main force is likely to be quietly shipping.
(3) Observe the main force’s intentions through the activity level of individual stocks
Generally speaking, when a new main force appears, the time from collecting chips to controlling the plate is relatively long. Long, the trading volume will gradually become active. However, after entering the stage of controlling the market, the main force will inevitably not linger near its cost area for a long time, but will quickly raise the stock price, resulting in a wave of rising market. The activity level of individual stocks can often reflect in a timely manner whether it is a new main force or an old main force and their strength.
(4) Analyzing the main intentions through turnover rate
The activity level of trading volume indicates the explosive strength of individual stocks after the breakthrough, and the greater the turnover rate High, the more participants, once the market breaks in a certain direction, the original huge long-short divergence will force the other side to join the other side because of the victory of one side. Although the main force uses the method of directly and quickly building positionsNot much, but the real intention of the main force can also be understood from the turnover rate over a period of time.
The content mentioned above is only part of the application knowledge to discover the main intentions of the trading volume. In actual operation, the analysis of the trading volume must be developed together with the trend of the stock price, so as to maximize its use. Effectiveness in analysis.
3. How to use trading volume to select stocks?
1. At the initial stage of stock price startup, the trading volume in a single day is greater than the moving average of the stock in the previous five days The trading volume was 2.5 times, which was 3 times greater than the moving average trading volume in the previous 10 days.
2. The intraday intraday volume ratio at the initial stage of the stock price should be at least 10 or more, and the closing volume ratio should be at least 2.5 or more.
3. At the beginning of the stock price start, the trading volume maintained a moderately enlarged state, the volume energy deviation rate indicator VBIAS can maintain a rapid and continuous rise for 3 to 5 days, and within a period of time after the stock price starts, VBIAS can Cross the 0 axis multiple times.
4. The moving average volume VOSC indicator is greater than the 0 axis, and gradually moves upward. Even if it is adjusted occasionally, the time for the VOSC indicator to be positive is much longer than the time it is negative.
5. When the volume standard deviation indicator VSTD quickly rises to a very high position that is rare in the history of the stock, it indicates that the stock's trading volume is over-amplified. This extremely high position is different due to the different size of the circulation of various stocks and the different activity levels, so there is no certain quantitative standard. Investors can compare the historical performance of individual stocks based on the VSTD indicator.
Fourth, the fundamental law of changes in trading volume-the "eight-order law"
1. Volume increase, flat price, turn positive signal.
2. The volume increases and the price increases, a buy signal.
3. Volume parity rises and prices continue to buy.
4. Volume reduction and price increase, continue to hold.
5. Volume reduction and price flatness, warning signal.
6. Volume reduction and price reduction, sell signal.
7. Volume parity and price decline, continue to sell.
8. The volume increases and the price decreases, abandon the sale and wait and see.
Matters needing attention:
(1) When using stock selection methods, We must first make a certain judgment on the general trend. As the saying goes, look at the general trend and be a stock. You can’t blind your eyes to the mountain;
(2) In the stock selection process, try to discard high- and heavy-weight stocks. This kind of stock has a higher risk factor;
(3) Regarding the setting of the turnover rate, appropriate adjustments should be made according to the changes in the market. Increase it in the hot market of the bull market, and decrease it in the consolidation of the bear market;
(4) The OBV indicator is very useful. You can take a closer look at the indicator usage given by the system;
(5) Reluctant to discipline, philosophy, and mentality, methods and techniques are often compromised. The unity of knowledge and action is the foundation for the survival of the stock market.
Fifth, trading volume stock selection techniques
1. Infinitely lower limit, continue to lower limit, and stop until a large amount
The stock has a limit down, and the trading volume is very small. This is called an infinite limit. Then the stock price may continue to have a limit down until there is a large number. It is possible to end the lower limit, a rebound or a reversal.
2. Infinite daily limit, continue the daily limit, until a large number does not stop
Infinite daily limit is actually the same as infinite daily limit The nature of the stock is similar. When the stock has the first limitless daily limit, it means that the market outlook may continue to increase the limit until the end of the daily limit when there is a large amount in the later period, and a retracement or reversal occurs.
3. Volume and stock price W double bottom
After a long period of decline in stock price, the transaction The volume formed a trough, and then the stock price began to rebound, but the trading volume did not gradually increase, indicating that the stock price rose weakly. Then the stock price began to fall near the previous trough to form a second trough, and the second trough was lower than the first trough, forming a trading volume. The double trough pattern of the stock price W indicates that the stock price has insufficient momentum to fall, and the stock price will see a wave of rising market.Investors can boldly buy.
Sixth, the actual volume of stock picking
Cheat 1: the method of buying a large amount of money
The so-called large volume is the stock that has released the largest trading volume in the recent period, we call it large volume! And the large volume buying method is that the trading volume of the day suddenly releases the largest trading volume in the near future, and the next two trading days Stock prices are higher than the day of the storm.
1. A large number of K lines can be either Yang or Yin lines.
2. If the K The line is a doji line, and the highest price is used as the standard.
3. This large amount is greater than the trading volume in the past 20 days
As shown in the above picture, this stock was issued on November 4, 2015. After the market washing and shock, the stock's trading volume suddenly soared to a new high on that day, and the stock price appeared Changyang. It also hit a new high, which is an excellent buying opportunity. Subsequently, the stock has also risen all the way, with an amazing increase!
Cheats 2: The method of selling in large quantities
Contrary to the buying method, the large volume selling method is that the trading volume of the day suddenly releases the largest trading volume in the near future, and the stock price of the next two trading days is lower than that of the volume of the day.
Points to note:
1. The trend of stock prices is not necessarily an upward trend, it may be a downward trend
2. This Large amount If the number of days is more, the decline time will be longer after falling below the bottom of the entity.
3. Participate in the call auction to sell the next day before the market, which can ensure that the stocks are sold in time
On November 13, 2015, after a long-term surge in this stock, the stock's trading volume on that day suddenly soared, and the stock price of the next two trading days was more than violent. The day was low, at this time we should decisively sell and flee, and then, the stock also plunged all the way, the decline is terrible.
Seven. Matters needing attention in trading volume
1. Any entry or exit should be based on the market as an observation point. Don’t do it when the market is not good, let alone be Confused by rising stocks against the market.
2. After the volume shrinks, when the new bottom point no longer appears for 2 consecutive days, the bottom of the volume can be confirmed, and intervention can be considered.
3. After the volume bottoms out, if a huge volume bursts out again, you should be especially careful about the market of the day at this time. Under normal circumstances, a sudden increase in volume is not a good thing, unless the volume shrinks and the price rises the next day. It's just a rebound.