Hexun Investment Advisor Cao Bing: By combining turnover rate and volume ratio, clearly see whether the stocks in your hand are rising or falling.

Will your stock rise or fall tomorrow? Actually, you can tell in just 3 seconds! Just remember this core logic: once it goes beyond the critical threshold, run immediately—don’t hesitate!

This isn’t some mysterious code. It’s a dependable indicator that I built from more than ten years of hands-on, real-world trading experience, backed by real money—by combining the volume ratio and the turnover rate. It helps you catch bull stocks and avoid traps—catch one, and you get a bull!

When many people trade stocks, they always can’t help staring at the K-line chart. Either they follow rumors, or they blindly flip through financial reports—but these are often hindsight. By the time you figure it out and react, the best opportunity is already gone, and you may even get trapped at a high price!

In the stock market, the only thing that can’t be fooled is the volume ratio and the turnover rate. Seasoned old-timers all understand this saying: “If you trade stocks without looking at the turnover rate, even if you trade for 10 more years, it’s all in vain.” This method is the basic skill I haven’t lost in more than ten years. Today, I’ll explain it in plain, easy-to-understand language and get it across to everyone clearly in one go!

First, understand these two core indicators—newcomers can pick them up in seconds too:

The volume ratio tells you whether today’s trading heat is high compared with the past few days. It’s like you opened a small restaurant: a few days ago, you had only 1 table of customers each day, but today you have 2 tables—then the volume ratio is 2. But just having a high volume ratio isn’t enough; you can’t tell whether the business is truly booming or just putting on a show.

The turnover rate helps you judge whether the “excitement” is real or fake. It can show how many truly effective orders there are in today’s trading—whether the major players are operating in a genuine way, not just random retail investors messing around.

So remember this: looking at the volume ratio or turnover rate alone is wasted effort. Only when you use both together can you truly see through the major players’ intentions and catch real bull stocks!

Here are the key points—4 real-world trading scenarios. Match them directly and remember them so you can use them:

First scenario: turnover rate > 5%, and the volume ratio is between 2 and 3. This is the signal that the stock is truly ready to launch. Don’t hesitate—buy decisively right at the open to catch the starting point!

Second scenario: turnover rate between 5% and 10%, and the volume ratio between 3 and 5. This indicates the stock’s activity is at full throttle. It’s very likely a sign that the next leg upward is about to start. Hop on quickly—then just wait to take the profits!

Third scenario: turnover rate > 10%, and volume ratio > 5. At this time, you must pay attention to the stock price position: if it’s at a low level, it means the major players are quietly accumulating—we can enter decisively; if it’s at a high level, it means the major players are distributing and cashing out—run quickly, and don’t be greedy for the last bite!

Fourth scenario: turnover rate > 5%, and volume ratio < 2. Be on guard in this case! When turnover rate is high but volume ratio is low, it means this stock has already risen earlier. Now it’s either near the end of the rally, or the major players are quietly distributing. No matter which it is, leave first—safety comes first!

After listening to this, don’t you feel that this method is both simple and practical? No complicated analysis, no need to look at a pile of data—direction can be judged in 3 seconds!

(Editor-in-charge: Zhang Yang HN080)

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