Dark horse pick the bottom of the heavy volume the key is to look for a moderate heavy volume stock

Category: Money Tips Date: 2006-01-21

Investors dark horse in the selection of the bottom of the heavy volume, the key is to look for stocks moderately heavy volume, volume does not enlarge or over-amplification, not be conducive to the future development of the Unit. Because if too heavy volume stocks, tend to consume significantly more energy to do the unit, so that funds are not short-term follow-up time relay, individual stocks will rise in the lack of continuous power, so that stock prices tend to step up, the lack of actual investment value.

As to whether the appropriate turnover of amplification, you can refer to the following indicators, as the stock selection criteria.

1, stock prices started early, single-day trading volume is greater than the unit on the 5th before the moving average trading volume of 2.5 times larger than the first 10-day moving average volume of 3 times.

2, the share price to start the initial one-day intraday than to reach at least 10 more close than at least 2.5 and above.

Third, stock prices started to enlarge the initial volume was moderate state, the amount can deviate from the target rate of VBIAS be able to maintain 3 to 5 days of rapid and continuous rise in stock prices and in a period of time after commencement, 24 VBIAS be able to repeatedly cross the 0 axis.

4, moving average trading volume is greater than 0 axis VOSC indicators, and gradually move up slowly, despite some occasional adjustment, VOSC positive indicators of time far more than for the negative time.

5, the standard deviation of volume index VSTD rapid rise to the unit history of a rare high position, that stock trading volume over-amplification. Such a high position because of various different sizes, and Liu Tongpan stocks were active in varying degrees and different, so there is no certain quantitative criteria, investors based on the historical performance of individual stocks VSTD indicators for comparison.

6, the bottom of the heavy volume of turnover of individual stocks Although a significant increase compared to the early, but the Liutong Pan, and stocks are not large compared with a daily turnover of turnover should not exceed 10%.

For example: 600.2 thousand, Jiangsu Wuzhong in August 2000 to November of 16 yuan to build a solid arc at the bottom of the Unit on November 8 launched the same day turnover was 271.5 million shares, daily average turnover of 5 amount of 2.7 times is 10 times the daily average trading volume of 3.47, the amount can deviate from the target rate of VBIAS fast on the red, indicating that the effective volume amplification. The same day turnover is 2.17%, after rising long-term process, changing hands has not exceeded 10%. Although the index rose on the way VSTD once as high as 15500, may be still far lower than the unit VSTD to a historical high of 24200, indicating that the unit does not belong to the bottom of the heavy volume over a big bang, is a kind of momentum can be sustained moderate heavy volume. The unit starts up is always running in the straight channel, through the 9-month period, the stock rose more than doubled.