The saying "A bad board produces a monster stock" is popular in the stock market. What kind of bad board has the potential to become a monster stock? Not all bad boards can become monster stocks; most bad boards will show poor performance the next day. Only a few can generate trends.
Let’s take a look at individual stocks and analyze their characteristics.
First board, low volume. This occurred after a significant drop, with a consolidation period of seventeen days and a no-volume limit up. It indicates that the trapped chips from the previous period have not loosened.
Second board, increased volume, turnover rate of 25%, first hitting the limit up, then breaking the board, oscillating for more than an hour, and then hitting the limit up again. Why is there an increase in volume during this oscillation? Just look at the position to understand. If we see the entire shape as a "bowl," this position is at the edge of the bowl, where a relatively large number of chips have been unlocked. Shareholders oscillate between profit and loss, their mindset is unstable, making it easy to hand over chips, which can also be referred to as floating chips.
Third board, turnover rate of 30%, limit up at this point, many people are in profit. During this oscillation, the mindset of the profit-takers is also unstable, and there are many who take profits quickly, causing chips to be transformed again, with some entering the hands of the main force, while others are acquired by later entrants. The main force also tests the selling pressure through oscillation.
Fourth board, turnover rate of 15%, quickly hitting the limit up after the market opened in the morning, showing a clear attitude.
If a bad board can be re-sealed, it indicates that it is still strong; observing the position of the bad board is quite important.