1）When
the Stock has a sudden surge in volume, there isn’t any bigger volume coming up
for the next 10 days
2） The sector no. 1 and no. 2 stock starts to become weak. eg: Big fall for 3
consecutive days or 4/5 days drop
This is the sign
that the sector is turning weak
3）Stock price open high and going lower for 2 consecutive
days. The day ends with at lowest point.
(Stock price open high and dropping
for 2 days indicates a lot of people are waiting to short. If stock price ends
2nd
day at lowest point indicates Bulls lost the battle)
4）When
stock moves up by more than 30%, then 10 day Moving Average starts to turn
down.
(When stock increase by >30%,
consolidation can happen anytime. If 10day MA turns down, stock trend may stop)
5）A
sudden big volume on a day. Stock price ends at lowest or having an inverted
hammer with a long tail
(When sudden volume surge with
falling price normally indicates Big players are leaving, price is shaking)
6）A surge in volume for a single week, price starts to go weak
for 2 consecutive days
(Weekly volume
represents short term momentum of stocks. When the momentum is at its highest
point, and yet stock price drops, it
means people are leaving, short term “party” is over.)
7）For
the week, the stock swings wildly, but ends at the lowest point
(Violent swing represents a strong
battle of bulls and bears, when price ends at lowest means that bulls have lost
the battle.)
8）Stock price falls more than 20% swiftly from the highest
point.
9）Stock
price has a double top pattern, with the right top less than the left. Then it
falls below the neckline.
(Head and shoulder, Multiple Top and
Double Top are 3 patterns that shows falling of price. Among them, double top
is the most common these 5 years)
10）When a stock breaks a box pattern to
the downside. When in a box, it has a pattern. Once a box bottom is broken,
tendency of going down is strong
