Depu Forex: On the topic of daily turnover!

The daily turnover rates can be divided into five categories, namely, downturn, normal, activity, high activity, and abnormal activity. However, investors should note that the magnitude of these turnover rates will vary at different times when the market is at high, low, and stable. This articledooprimeLet's focus on their five states:

1. Low state

Generally speaking, when the daily turnover rate of an individual stock is less than 1%, it indicates that the stock market has not changed hands enough, trading is light, and the stock price will maintain its original trend in the short term.

If the change of hands is only active for a day or a few days, and then it starts to slump again, it means that the main force is tempting retail investors.

2. Normal state

When the daily turnover rate of a single stock is between 1% and 3%, it indicates that the bulls and bears of the stock have a slight opinion, but they are in a normal state of turnover, and the stock price will continue to operate according to the original trend. After the share price of China Merchants Bank fell to the bottom, it began to fluctuate and rise. At this time, the turnover rate began to normal.

In general, the daily turnover rate of most stocks in the market will not be less than 1%, unless the market is in an extreme downturn.

3. Active state

When the daily turnover rate of a stock is between 3% and 7%, it indicates that the stock is more and the bears are more divided. But whether the stock price rises or falls in the short term depends on which side of the bulls and bears is stronger. When this turnover occurs, it often means that the main force is beginning to appear. If the stock price starts to rise from the low point, stock investors can pay attention.

4. High activity state

When the daily turnover of a stock is between 7% and 15%, it indicates that the stock is highly concerned by the market and belongs to the period when the main force shows strength. This usually happens in a hot stock or a strong hot stock. This means that the stock is in a highly active state, but it also indicates that there are many problems. The two sides have very different opinions. Please note that this may also be the main action of knocking on the door, or it means that the market will change due to one side consuming too much energy. If the stock price is low and the turnover is high and active, it indicates that the stock will have a good increase; if the stock price is high, the stock price may fall.

5. Abnormal activity status

When the daily turnover rate of a stock exceeds 15%, it indicates that the stock is unusually active. On the one hand, it indicates that the main force is running strongly, and on the other hand, it indicates that there is a huge divergence of opinion between long and short stocks. Such a turnover rate may occur when a stock breaks through important resistance levels, but if a stock is at a high level, it is a different sign that the market has entered a speculative frenzy phase or major trading volume.

On the first day of a new stock listing, individual stocks often have a turnover rate of 50% to 90%, because there is no increase in the turnover rate of 0%. However, the more sufficient the turnover, the better, indicating that the main force is grabbing chips.

Under normal circumstances, when a stock with a daily turnover rate of 3% to 7% rises, you can focus on it; if the turnover rate is above 10%, shareholders should be careful; if the turnover rate of individual stocks is too low or too high, please do not touch it.

For some high sideways or old stocks, this method cannot be used.