Leopard Investments After a lot of hard research, I finally picked a stock. After I bought it at a suitable entry point, it also soared as I expected. However, do you think about how far this stock will go? Are you worried that if you don't sell today, it will fall tomorrow? Buying points is a science, and selling points is one of life's lessons. Therefore, in this article, we want to introduce the chip indicator , the range turnover rate , to help us observe whether the stock will continue to rise, or will it reverse and fall?
Use the "Range Turnover Ratio" to observe the recent trading enthusiasm of individual stocks Interval turnover rate = turnover in the past N days / market photo background removing value of each stock market. A larger number for the range turnover ratio indicates that the stock has been frequently traded in the market recently. We usually use the interval turnover ratio with the concentration of chips. When the chips of individual stocks become concentrated, there is a chance to become a soaring stock, because those few people sell or buy, which affects the ups and downs of the stock price. At this time, we will observe the interval . The size of the turnover rate , to see how popular the market is, if the turnover rate is also increasing, there is a chance to become one of the hot stocks that everyone is paying attention to.
(Extended reading: Investment practice teaching! Understanding chip analysis from stock selection tools ) The turnover rate of the interval is too high, and the chance of over-hype increases However , the interval turnover rate is not as high as possible. It is generally believed that when the interval turnover rate is greater than 50%, there will be opportunities for speculation. Think about it, if the range turnover rate exceeds 50%, it means that the trading volume of individual stocks has exceeded half of the share capital in the past few days, and the frequency of changing hands is too frequent, indicating that someone is constantly hyping this stock. Therefore, when the concentration of chips gradually changes fr