Volume Characteristics of Dark Horse Stocks

The price rises and the volume increases, the price falls and the volume shrinks are the normal pattern of the general market or the operation of individual stocks. The volume is often very high when the index or price is in the rising stage; when the stock index tops, the volume shrinks extremely. And the dark horse is often the opposite way, it will be at a low level when a large release of volume, even more than the volume of the previous building head, this situation is known as "huge volume over the top", indicating that the stock market bullish.


The characteristics of this pattern are.
1, Before the head (within a year of the top) when with a large volume.
2, The previous has been in the downward channel, there is now a stop and stabilize the trend, and in recent days a relatively low release of huge volume, single-day volume more than the volume of the top, the general turnover rate of more than 10%. At this point the bottom of the volume, can be concluded as a sign of the main force into the field. At the same time the amount of the bottom exceeds the amount of the head, is extremely conducive to dissolve the head of resistance.
3, After the release of a large amount of stock prices continue to maintain a stable state, and can soon start the uptrend. This usually indicates that the root of the stock price is solid, the market has more space, at this time can follow up.


Some dark horses in the main absorption often can find signs on the volume, while some main forces like to quietly absorb, in the low when there is no obvious release phenomenon. The obvious feature of these stocks in the process of rising is the shrinking volume, even the more up the volume is smaller. The main force with a small number of transactions can push up the share price, thus revealing such reliable information:
1, The main force has been completely controlled, a high degree of concentration of chips, to pull how high by the main force to decide.
2, Up shrinkage, indicating that the main force without the possibility and willingness to pay out, the market will still be bullish. Not appear obvious head characteristics may wish to hold long-term.
What kind of volume is considered shrinkage up it? This can be divided into several cases:
1, The more the share price rises, but the transaction is less than the previous; with the share price rises, the willingness to sell people instead of reducing, reflecting the strong market mentality of selling.
2, The turnover rate is low, the daily turnover rate is generally not more than 10%, with very little volume that is to maintain a continuous upward trend, indicating that the uptrend is difficult to change.
3, Up when the volume remains stable, a period of time, the daily volume is relatively close, no big ups and downs phenomenon.
Into the top stage of the plate performance for: up in the process of releasing a large number, the turnover rate generally reached 30% or more, the main force to reduce the signs of extremely obvious.