moomoo US Help Center-The characteristics of "black horse" in terms of quantity, technology and price
English
Back
Log in to access Online Inquiry
Back to the Top

The characteristics of "black horse" in terms of quantity, technology and price

Some quantitative characteristics of dark horse stocks

Generally speaking, price rises and volume increases, prices fall and volume shrinks are the normal patterns of the market or individual stocks. When the index or price is in the rising stage, the trading volume is often large; when the stock index peaks, the trading volume shrinks extremely. The emergence of a dark horse often goes the other way. It will increase the volume significantly at low levels, even exceeding the volume of the previous period when the head was built. This situation is called "mass overtopping", indicating that the stock market outlook is promising.


The characteristics of this form are:

1. In the early stage of building the head (the top within one year), there was a large trading volume.

2. In the early stage, it has been in a downward channel. At present, it has stopped falling and returned to a steady state. It has released a huge amount at a relatively low level recently. The single-day trading volume exceeds the trading volume when the top is reached, and the turnover rate generally exceeds 10%. At this time, the bottom is enlarged, which can be determined as a sign of the main force entering the field. At the same time, the amount of the bottom exceeds the amount of the head, which is extremely helpful to resolve the resistance of the head.

3. The stock price continued to stabilize after the huge amount was released, and could start an upward trend soon. This usually indicates that the stock price has a solid foundation and that there is still a lot of room for the market outlook. You can follow up in time at this time.

Some dark horses can often find signs in the amount when the main force is absorbed, while some main forces like to absorb quietly, and there is no obvious increase in the low position. The obvious feature of the rise of these stocks is the shrinking transaction volume, and even the smaller the volume as it rises. The main force can push up the stock price with a small number of transactions, thereby revealing such reliable information:

1. The main force has fully controlled the board, the chips are highly concentrated, and how high is determined by the main force;

2. The increase and shrinkage indicate that the main force has no possibility and willingness to distribute, and the market outlook will remain bullish. If there is no obvious head feature, you may wish to hold it for a long time.


What kind of volume is considered to be shrinking and rising? This can be divided into several situations:

1. As the stock price rises, the transaction volume decreases compared with the previous period; as the stock price rises, the number of people willing to sell decreases, reflecting the market's strong reluctance to sell.

2. The turnover rate is low, and the daily turnover rate generally does not exceed 10%. It maintains a continuous upward trend with a very small turnover, indicating that the upward trend is difficult to change for a while.

3. The trading volume remains stable when it rises, and the daily trading volume for a period of time is relatively close, with no major fluctuations.

When entering the top stage, the intraday performance was as follows: a large amount was released during the upward process, the turnover rate generally reached more than 30%, and the signs of the main force to lighten up were extremely obvious.

Risk Disclosure This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose of the above content.