What is the signal that the stock has peaked?
1 From the perspective of trading volume, when there is an unusually large trading volume during trading hours, it means that the stock is about to peak. If the turnover rate of small-cap stocks exceeds 30%, and the turnover rate of large-cap stocks exceeds 15%, and the stock price rises to a certain extent, then investors should decisively sell stocks on the day when they put a huge amount, regardless of whether the stock price is rising or falling.
2 From the K-line shape, the long shadow line is a classic K-line shape that peaks, especially the long shadow line that appears after many medium and large K-lines rise continuously. If the increase is too large, it will fall back when it encounters resistance and enter an adjustment state. Among them, it is more likely that the Yinxian line will peak, indicating that the bulls are unable to resist and the bears are sure to win. In practice, once there is a negative K-line with a long shadow line, it is best to lighten up in time and wait and see.
Therefore, in the stock market, even if the market has been rising, we need to be cautious and pay attention to the peak of the stock, otherwise once the stop loss is not enough, it is likely to give back profits.