In general, the daily turnover rate of most stocks is 1%-2.5%, and the turnover rate of 70% stocks is below 3%. If the turnover rate is lower than 1%, it means that the transaction is sluggish and the turnover rate is too low, which means that the stock trading is not active.
There are generally two situations in which the turnover rate is low: one is that the stock is rising and there is a lot of room for growth, and investors are waiting for high-level shipment. The other is that the stock is falling and nobody cares.
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. According to the nature of the sample population, there are different types of indicators, such as the total turnover rate of all listed stocks on the exchange, the turnover rate based on the number of single stocks issued, and the turnover rate based on the portfolio held by institutions.
Among many technical analysis tools, turnover rate index is one of the most important technical indicators to reflect the activity of market transactions.
Commonly used technical analysis indicators also include: MACD, RSI, KDJ, deviation rate, etc.
Turnover rate = turnover in a certain period/total number of shares issued × 100%.
(In China: turnover/circulating share capital × 100%)
for instance
For example, if a stock trades 20 million shares in a month, and the outstanding shares of the stock are 654.38 billion shares, then the turnover rate of the stock in this month is 20%. In China, shares are divided into two parts: public shares that can circulate in the secondary market and state shares and legal person shares that cannot circulate in the secondary market.
The turnover rate is generally calculated only for the tradable shares, so as to reflect the liquidity of the stock more truly and accurately. According to this calculation method, if the circulating share capital of that stock in the above example is 20 million, its turnover rate is as high as 100%. In foreign countries, the turnover rate is usually calculated by the ratio of the transaction volume in a certain period to the market value at a certain point in time.
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.
Chinese and foreign differences
The turnover rate of the world's major securities markets is different, which is far from each other. In contrast, China's stock market has the highest turnover rate among all countries.
meaning
(1) The higher the turnover rate of a stock, the more active the trading of this stock, and the higher people's willingness to buy this stock, which belongs to active stock; On the other hand, the lower the turnover rate of a stock, the lower the attention of this stock, which is an unpopular stock.
⑵ A high turnover rate generally means that stocks have good liquidity and it is easier to enter and exit the market. There will be no phenomenon of wanting to sell without thinking about buy buy, and the liquidity is strong. However, it is worth noting that stocks with high turnover rate are often the targets of short-term capital pursuit, with strong speculation, large stock price fluctuations and relatively large risks.
⑶ 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.
(4) The relatively high turnover suddenly enlarged, and the main distribution intention was obvious. But it is not easy to increase the volume at a high position. Generally, when there are some advantages, the distribution can be successfully completed by heavy volume and main force. There are many examples
It is natural that the turnover rate is high in the initial stage of IPO. Once staged the myth of unbeaten new shares. However, with the changes in the market, it has become a reality for new shares to open higher and lower after listing. Obviously, it can't be concluded that high turnover rate will definitely rise, but high turnover rate is also an important factor supporting the stock price rise.
[6] The high turnover rate of stocks with heavy volume at the bottom shows that there are obvious signs of new capital intervention and there is a large room for future growth. The more shares change hands at the bottom, the lighter the selling pressure will be. In addition, strong stocks represent the hot spots in the market and need special attention.