In fact, it is the proportion of trading volume of stock circulation, and the formula is probably: turnover rate = trading volume/circulation. So I understand that the turnover in the circulation plate is high and low. Under normal circumstances, the turnover rate of sub-new shares is relatively high, because the circulation of sub-new shares is small (denominator is small), and the turnover rate will be 30% to 50% or even higher with the slight increase in trading volume. Some popular sub-new shares will rotate every two or three days (on the surface). When there is a second honeymoon market for new shares, the higher the turnover rate, the more likely it is to have a huge short-term increase.
High turnover rate is good news.
As long as the turnover rate begins to increase, it means that stock trading begins to enlarge. If the original turnover rate is mostly around 1%, and suddenly increases to around 5% or even higher after a few days, it means that this ticket may have a good event and the stock price may perform. However, this situation can not be viewed from the turnover rate alone, but needs to be combined with more technical analysis methods, such as shape, wave, moving average, K line and so on. , and can be determined by combinatorial analysis.
In fact, in actual operation, the most commonly used is not to observe the turnover rate, but to directly look at the turnover rate, because the essence reflected by the turnover rate is the same. Why should we take the turnover rate as the main observation object? Because the turnover rate is only for individual stocks, there is no plate classification and market, that is, it is necessary to comprehensively observe the overall situation and individual stocks, and these two elements complement each other. To put it simply, we must first observe whether the market environment is a bull market environment. Only the bull market environment is suitable for us to make stocks. Even radical friends will at least wait until the market stops falling before starting to make stocks. So how can we be sure that the market has stopped falling? Volume is no longer the volume of land, and can be determined with great probability. The market can stop falling and bottom out, and it is precisely because some sectors and stocks stop falling and bottom out in advance that the selection time of sectors and stocks is carried out at the same time as the market.
There is a saying: individual stocks determine the sector, and the sector determines the market. This is caused by the calculation method of weighted index, so I won't explain it here. Having said that, this series of observation methods are based on the volume of transactions. As the saying goes, quantity comes first, that is to say, quantity comes before price. Of course, this refers to the algorithm of the total amount of the market or plate. Some stocks can have unlimited daily limit under the condition of great profit or main control. This is another matter.