High position and low turnover rate refers to a situation where the stock is in a high position and the turnover rate is relatively low. It may be that the stock price has entered a high level after the main force has pulled up and washed up, but the main force or investors are still optimistic about the stock and do not sell their chips. The bid-ask spread is small, and the probability that the stock will continue to rise is relatively high. The turnover rate, also known as "turnover rate", refers to the transaction frequency of stocks in the market in a certain period of time and is one of the indicators reflecting the strength of stock liquidity.

High and low influence

Generally speaking, the daily turnover rate of most stocks is 1%-2.5% (excluding stocks at the initial stage of listing). 70% of the stock turnover rate is basically below 3%, and 3% becomes a boundary. So what does it mean to be greater than 3%? When the turnover rate of a stock is between 3% and 7%, the stock enters a relatively active state. 7% to 10%, is the emergence of strong stocks, the stock price is highly active. (widely concerned by the market)

10%- 15%, dazhuang closely operates. If the turnover rate exceeds 15% and lasts for several days, the stock may become the biggest dark horse.

meaning

Combining the turnover rate with the stock price trend, we can make some predictions and judgments on the future stock price. The sudden increase in the turnover rate of a stock and the enlarged trading volume may mean that some investors are buying in large quantities, and the stock price may rise accordingly. If a stock continues to rise for a period of time and the turnover rate rises rapidly, it may mean that some profit-seekers want to cash out and the stock price may fall.

determining factor

Generally speaking, the turnover rate in emerging markets is higher than that in mature markets. The fundamental reason lies in the rapid expansion of emerging markets, more newly listed stocks and weak investors' investment concept, which makes emerging market transactions more active. The turnover rate also depends on the following factors:

1. Transaction method.

2. Delivery cycle. Generally speaking, the shorter the delivery cycle, the higher the turnover rate.

3. Investor structure. In the securities market with individual investors as the main body, the turnover rate is often high; In the securities market dominated by institutional investors such as funds, the turnover rate is relatively low.