The precursor to a sharp rise in stock prices—volatility

What is volatility?

It means that the stock price used to fluctuate daily by about 1% to 2%,

For example, one day it rises by two points,

Falls by two points,

Suddenly one day it rises by 5 points,

A couple of days later it drops by 4 points,

The stock price begins to fluctuate wildly and unpredictably,

But it stays in the bottom range without rising,

This is a sign that the stock price is about to surge.

Repeatedly going up and then falling back,

This is a precursor that the stock price is about to rise.

In the eyes of professional traders,

An increase in volatility is a very important signal,

It indicates that funds are starting to flow into this stock,

And it is becoming more active.

There are many such examples,

I won’t list them all,

Everyone can look into it,

Back in the day, when those big bull stocks started at the bottom,

They suddenly began to fluctuate up and down,

Volatility increased,

Then they hit two or three limit-up boards,

And then fell back,

Then rose again,

And then dropped again.

But you’ll notice that their prices just won’t go up,

This definitely means that the main force is building a position.

Therefore,

Trading stocks requires learning some key indicators,

Not obsessing over those “magical” indicators you don’t understand the principles of,

Just remember this thing called volatility.

When volatility clearly rises,

It’s a sign that the stock price is about to surge.