Category: Money Tips Date: 2007-05-03
Analysis of turnover is a very important practical aspect. As Liu Tongpan of different sizes, a simple turnover comparison is largely meaningless. While inspecting the volume, not only depends on the amount of Chengjiaogushuo, but also to analyze the level of turnover. Turnover is within a certain time, a stock with the cumulative Chengjiaogushu the ratio of the outstanding shares. For example, Zhou turnover refers to the time in a week of individual stocks change hands, that is, every single day within a week the accumulated turnover. Changes of turnover should be said that more than other technical indicators and patterns of judgments more reliable. The level of turnover not only means that the stock changed hands a specified period of time the full extent and an active trading status, more importantly, it is to judge and measure the differences between the two long-short size is an important indicator for reference. Low turnover shows that the views of both sides are basically the same long-short, stock prices generally arise due to low volumes fell sideways or into. High turnover indicates that long-short divergence of both sides, but as long as the status of active transactions can be maintained, the general price will be showing a slight upward trend.
For the turnover observations, most investors must pay attention to is the high turnover and low when the situation. Too low or too high a turnover rate in most cases are likely to be leading indicators of price change disk. In general, long-adjusted share prices, if a continuous period of time more than a week turnover are maintained at a very low level (eg, weeks turnover rate at 2% or less), then often presage long-short both in the biding their time. Because the strength of the short side has basically completed the release, this time the stock basically has entered the bottom of the area. Even after the general good news for individual stocks may trigger a strong rally.
For the emergence of high-turnover, investors should first distinguish between the relative position of the high turnover rate there. If you have previously traded stocks in the heavy volume after a long slump, and high turnover rate can be maintained past few trading days, you generally can be seen as a new kind of money involved in the more obvious signs. At this point the credibility of high change hands better. Because it is the bottom of a big bang, coupled with another change hands full, so the future upside of such stocks should be relatively large, while the possibility of a strong stock are also high. Investors need to focus on this case to make. If the stocks are relatively high while the sudden appearance of high volume changing hands suddenly enlarge, tend to be more likely to drop precursors. This happens more often is accompanied by introduction of individual stocks or the market's good, this time has been profitable chips would be opportunity to exit, the successful completion of distribution, "good out of bad" situation is in this situation to arise. For this high-traded, investors should be treated with caution.
In addition to the high turnover rate appears to distinguish between the relative position of foreign investors but also concerned about the duration of the high turnover rate is just heavy volume of stocks, or stocks longer periods heavy volume. In most cases, some positions will be a result of the larger institutions can not be taken out of the inverted self-help approach to attract follow the trend of disk. For those changing hands full, but gains limited the variety contrary we should heighten our vigilance. But for newly-listed shares, if the opening price and the issue price gap is not, and can change hands over an extended period to maintain a good, could be considered timely intervention.
In fact, regardless of turnover is too high or too low, as long as the cumulative gains over most of the pre-treatment should be careful. From a historical observation, when a single-day turnover of more than 10% or more, the stocks into the short-term adjustment of the probability of relatively large, especially for several consecutive trading days change hands more than 7%, and even more carefully.
