A rare 'ultra-short-term' tool, a must-have for short-term stock buying in 2025!
In the stock market, there has always been a timeless trading method, whether small investors, institutions, or major players, they prefer to select stocks only after 2:30 PM during the afternoon close, commonly known as the 'golden buying method.'
After 2:30 PM, the stock market, after a day of struggle, shows a gradual trend, and the performance of individual stocks in the last half hour is likely to continue into the next day.
Some investors have summarized that choosing to buy stocks that rise in the last half hour before the close, and selling them the next day at the right opportunity can find a pattern, increasing the success rate of stock selection.
When trading stocks, you can find good directions just by looking at the last half hour of trading! The trick is the following 8 key steps:
First, start screening after 2:30 PM, open the gain list, and add all stocks with a gain between 3% and 5% to the watchlist. Gains below 3% indicate weak performance that day, which is not conducive to a rise the next day. Stocks above 5% have already moved out, so it is not recommended to chase the highs.
Second, eliminate all stocks with a volume ratio below 1, as a volume ratio below 1 indicates that the stock lacks trading activity and popularity.
Third, eliminate stocks sequentially based on turnover rate; delete all stocks with a turnover rate below 5% and above 10%. Stocks below 5% have relatively low attention, while those above 10% are too active, usually indicating that major players may be raising the price to unload, thus reducing risk.
Fourth, further filter by circulating market capitalization in three screenings, removing those below 5 billion and above 20 billion, as stocks below 5 billion are generally obscure, and those above 20 billion have too large a market cap, requiring a substantial amount of capital to raise, making it inconvenient for quick short-term profits.
Fifth, further screen by transaction volume. Click on the secondary stocks' candlestick charts in sequence, keeping all stocks with continuously increasing volumes, which is better like steps. Stocks with unstable volumes that fluctuate high and low should be eliminated again.
Sixth, conduct the fifth screening. Look at the candlestick patterns of the stocks; an upward diverging bullish pattern is the best. Keep those stocks with no pressure above the candlestick, making it easier to rise and increasing the time for high probability.
Seventh, through the sixth screening, accurately select the intraday chart to judge, matching the current hot topic sectors, such as recent artificial intelligence chips, and other related stocks. The remaining stocks should be layered with the Shanghai Composite Index intraday chart, and the stock price trend must be above the intraday chart price throughout the day, indicating a better price increase, making the rise the next day stronger. Eighth, after 7 screenings, the remaining stocks have considerable potential; opportunities are reserved for those who are prepared. The remaining stocks should be observed after 2:30 PM; if the stocks hit a new high for the day, they are the target stocks.