How to screen the trading opportunities for stocks to jump short and open high

In the stock market, jumping short and opening high is a common phenomenon, which provides investors with rich trading opportunities. However, not all high jumps are noteworthy, and investors need to master certain skills to screen out potential trading opportunities. This article will introduce how to identify and screen high-open trading opportunities for short stocks.

First, understand the reasons for the high jump.

Short jump and high opening means that the stock price is higher than the closing price of the previous trading day at the beginning of trading, resulting in a short gap in the price. This phenomenon may be caused by a variety of reasons, such as improved corporate performance, changes in industry policies, changes in market sentiment and so on. Investors should first analyze the reasons for the high jump and judge whether it is sustainable or not. For example, if the high jump is caused by a significant improvement in the company's performance, then the high jump is likely to be sustainable and worthy of investors' attention.

Second, pay attention to the change of trading volume

Trading volume is not only an important indicator of market activity, but also a key factor in screening high-open trading opportunities. Generally speaking, if the short high opening is accompanied by a large trading volume, it means that the market pays more attention to the stock, and investors can think that this is a trading opportunity worth paying attention to. On the other hand, if the trading volume is small, investors need to be cautious, as the phenomenon may be temporary.

Third, combined with the technical indicators for analysis.

Technical index is an important tool for investors to analyze the trend of stocks, which can help investors to judge whether short jump and high opening is sustainable. The common technical indicators are EMA system, MACD, RSI and so on. Investors can combine these technical indicators with the phenomenon of high jump to analyze to determine whether it has trading value. For example, if the stock price still stands above the moving average after jumping high, then investors can think that this is a safer trading opportunity.

Fourth, pay attention to market sentiment and industry trends

The influence of market sentiment and industry dynamics on stock price can not be ignored. When screening trading opportunities that jump high, investors need to pay attention to the overall mood of the market and the development of related industries. For example, when the market as a whole is optimistic, investors are more likely to capture potential high-open trading opportunities. In addition, paying attention to the dynamics of the industry will help investors understand the deep-seated reasons behind the high jump, so as to make more informed investment decisions.

V. case study

In order to help investors better understand how to screen out high-open trading opportunities for stocks.FreepinballWe take a listed company An as an example for analysis. The company recently released a bright financial report, which has greatly improved its performance. At the same time, its industry has also received policy support, and the market prospect is promising. In this case, the stock of company An appears the phenomenon of short jump and high opening, and with a large trading volume, the moving average system also shows that its price stands firmly above the moving average. Taking these factors into account, investors can think that this is a high-value trading opportunity.

Date opening price closing price trading volume 2021-01-01 10Freepinball.00 105010 shares 2021-01-02 10.80 110012 shares 2021-01-03 11.20 113080 shares

Through the above analysis, investors can master the method of screening high-opening trading opportunities for short-jump stocks. It should be noted that stock investment has certain risks, investors should fully consider their own risk tolerance when making decisions, and make a comprehensive judgment combined with a variety of factors.