What does it mean for stocks to go low and high?

A stock opens at a price lower than the closing price of the previous trading day, and then the stock price keeps rising with the continuous entry of bills, showing an upward trend on the same day or in some time periods. So what does it mean for a stock to go low and go high?

What does it mean for stocks to go low and high?

1, opening lower and moving higher means that most investors are not optimistic or have bad news, so they choose to sell in early trading, but after a period of time, the situation improves or good news comes out, and the main funds enter the market, so the stock begins to rise.

2. Going out of the current stock rising stage by opening low and opening high means that some main funds begin to take profits, but other investors or main funds continue to be bullish. In this case, we should consider whether the stock has reached the top. If it has reached the top, it is not recommended to follow up. Because the main force will ship at a high level, there is a risk of quilt cover.

What's the trend after the stock opened lower and went higher?

Generally speaking, stocks open lower and go higher that day, indicating that there is limited downside in the short term, and sometimes they just make a technical callback and then fight back. This move is a typical rising pattern, and the subsequent development trend will generally continue to rise.

Of course, the strength of multiple forces is only short-term, which does not mean that buying will rise. Many stocks usually start to ship slowly the next day after opening low and going high the day before. Therefore, investors can not simply judge by opening low and going high, but also by analyzing the position, K-line shape, technical indicators and technology of stocks.

Generally speaking, it may be a good thing or a bad thing for stocks to go low and go high, which requires investors to analyze the specific situation of stocks at that time and make more reasonable decisions. Finally, remind investors that the stock market is risky and investment needs to be cautious.