How Can Investors Grasp The Signal Of Starting And Declining Stocks?

Foreword is the same as the movement of anything.

There are three main signals for a plate to start.

1, look at the increase list, if in the top 20 of the list, the stock of a plate occupies more than 13, and for a period of time, this situation can be preliminarily determined that the plate is starting.

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3, look at the trend, choose 5 to 8 representative stocks from high price stocks, middle price stocks and low prices, compare their trend from strength to weakness. If the number of stocks in a plate trend is more than that of the other two sectors, then this plate is the starting plate we are looking for.

The signs of a plate decline are as follows:

1, look at the increase, if the top 20 in the list, the stock of a certain plate has been less than 14 of the total, and showing a decreasing trend, then we must be alert that the plate has little or no room for improvement.

2, look at the volume, if the volume before the 20, the stock of a plate has less than 14 of the total, and there is a decreasing trend, which proves that the plate is about to enter the state of consolidation.

3, look at the rising space, generally speaking, the main force from the warehouse to the distribution, at least 50% of the room for growth, if in a larger level of bull market, after a certain sector started, the increase is not less than 50%, it can be regarded as a low risk investment area; the increase in 50-80% can be regarded as a risk investment zone; the increase of more than 80% can be regarded as a high-risk speculative area. When a stock price enters a venture capital area and a high-risk speculative area, we must be alert to the lack of upward momentum of the sector. If there is a stagflation, we should realize that the plate has been in full swing.

4, look at the trend, from the original plate of strong rise, select 5-8 typical stocks, see whether the average line continues to be in the upward divergence or gradual convergence, if most of the stocks are moving in a convergence state, and even some of the stock's average is beginning to diverge downward, indicating that the plate will soon be in place, or has been in place.

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