(1) price
Unlike many mid-career stocks, super-strong stocks have obvious bottom deviation in form. When the stock price rises, they almost pull straight from the bottom at an angle of 70-80 degrees, and the K-line is clean and neat, rarely forming a long upper shadow line continuously. When the stock price of super-strong stocks skyrocketed, the moving averages were obviously long. Unless the stock price peaks, it generally does not break the 5-day moving average, as shown in figure 1, 20 10, Jinshan development trend in early July.
(2) volume
Super-strong stocks often have a long-term downturn in trading volume before the stock price starts. The 5-day trading volume moving average is covered by the 10 moving average, sometimes appearing and disappearing. But one day, the 5-day moving average suddenly crossed the 10 moving average at an angle of more than 45 degrees, accompanied by a large volume (generally higher than the previous day by 1 to 10 times), which is often a signal that the stock will have a big market. Since then, the trading volume has remained above 10% for several consecutive days, and the stock price has risen, with excellent coordination between volume and price. Of course, some super-strong stocks also have a few small pillars and a small pillar before the stock price rises sharply, but the trading volume still needs to be large on the day when the market really starts, as shown in Figure 2, Jinshan Development's trend in early July of 2010.
(3) Time
At the end of a round of market decline, the stocks that take the lead in pulling the daily limit are most likely to become super-strong stocks (Jinshan Development and Western Construction (002302) in early July are typical examples). In addition, the initial stage of a wave of short-term or sub-medium-pole market is also an important moment for us to test super-strong stocks. Those who are in line with the mainstream of the market, have moderate share capital and take the lead in rising are most likely to become super strong stocks. Super-strong stocks generally only need about 6 to 20 trading days from the start of the market to the peak of the stock price. Because the main force is fully prepared, the stock price trend is extremely explosive. Therefore, once the 5-day price moving average goes flat and the K-line is negative, investors will make a good profit and loss.
(4) Space
Most of the super-strong stocks come from low-priced stocks, so there is considerable room for growth. Generally speaking, if a super-strong stock only needs 6 to 7 trading days to complete a wave of market, then the upside on the right side is about 50% to 60%. Historical data in the past show that most super-strong stocks can double their share prices within 10 or longer trading days.
It is not always impossible to choose super-strong stocks, which requires investors not only to have strong ability to watch the market, but also to have superhuman courage. Firmly buy when everyone is wandering and watching. An investor with a good level will choose one or two stocks that take the lead in pulling up the daily limit when a wave of market winds blow up. They must be in the circulation of capital stock, the absolute height of stock price, theme, the performance of individual stocks and daily time-sharing chart, the angle and speed of stock price limit and so on.