As the stop limit system limits the amount of stock up or down in a day, so that the energy of the long and short cannot be thoroughly ventilated, easy to form a unilateral market. Many investors have the will to chase up and kill down, and up and down under the stop system is relatively clear, in the stock close to the limit of up or down, many investors may not be able to resist the temptation to chase high or kill down, the formation of up when the help up, down when the help down trend. Moreover, the smaller the range of the stop, the more obvious this phenomenon.
In the actual up and down board system, big up (up) and big down (down) the trend continues, is to volume shrinks significantly as a condition. Take the volume of the stop board, in the past, see the price of volume increase, we will think that the price of volume with good, up the formation or will continue, can chase up or continue to hold shares; such as up when the volume cannot effectively with the amplification, that chase high will not be strong, up the trend is difficult to sustain, should not buy or throw out of the hands of individual shares. But in the up and down board system, if a stock in the up and down board when there is no volume, that is the sellers target higher, want to sell a good price in the future, and therefore are not willing to throw this price, the buyer cannot buy, so there is no volume. The next day, the buyer will continue to buy, so there will be a continuation of the rise. However, when there is a stop after the middle of the open, and the volume is enlarged, indicating that the investors want to sell increased, buying and selling forces change, down is expected.
In addition, such as the price of shrinkage indicates that the short-side pity sales, selling pressure is light, the market can be bullish; price down volume increase, it is said that the downtrend formed or continue, should wait and see or sell their chips. But in the stop system, if the stop, the buyer hopes that tomorrow to buy at a lower price, and therefore shrink, the result in the absence of buying volume in the case of small, but more than the decline; Conversely, if the closing is still down, but midway had been opened, the volume is enlarged, that there are active buying intervention, the decline is expected to stop, the disc is expected to rise.
In the up and down board system, the volume and price analysis is basically determined as follows
1, Stop the volume of small, will continue to move up; stop the volume of small, will continue to fall
2, The more times the stop was opened midway, the longer the time, the greater the volume, the greater the possibility of reversal down; likewise, the more times the stop was opened midway, the longer the time, the greater the volume, the greater the possibility of reversal up.
3, The earlier the stop closing time, the greater the possibility of the next day up; the earlier the stop closing time, the greater the possibility of the next day down.
4, Sealed up the number of buy stop size and sealed down the board when the number of sellers size indicates the size of the buying and selling power. The larger this number, the greater the probability of continuing the current trend, the greater the subsequent rise and fall.
However, we should pay attention to the banker to borrow the stop board reverse operation. For example, he wants to sell, first with a huge amount of buy orders hanging in the stop position, because of the large amount of concentrated buying, selling disc caught off guard and sell, the share price after a small number of transactions to close the stop. Naturally, the original want to throw not throw, and then some investors to stop price chase buy, at this time the banker withdrew buy single, fill sell single, natural transaction. When the buy plate consumption almost, the banker and fill the buy order to pick up the stop price at, to further induce more; when the retail investors and chase into, he withdrew the buy order and then fill the sell order.
Such repeated operations to achieve high hanging buy single bluff to induce more, unknowingly and quietly in the high level of shipments. On the contrary, the banker wants to buy, he first with a huge amount at the stop price hanging sell single, scared out of a large number of discs, he first quietly removes the original sell single, and then fill in the buy single, absorbing the disc. When the sell-off will be exhausted, he threw a huge amount in the stop price, and then intimidate the chip holders, in order to absorb chips. And so on and so forth. So, in this occasion, the huge amount of buying and selling orders are mostly false, not enough to determine the market to continue the previous trend of the basis. Judgment of the false reality according to whether there is frequent hanging single, withdraw single behavior, whether the stop is often opened, the volume of the day is very large. If so, then these volumes must be false, and vice versa, it is true, so that the previous criteria to make a judgment conclusion.