This is the stock selection criteria
The only criterion for judging "whether to buy": Trend structure
Don't look at "percentage gain", look at these 3 structural signals:
- Whether moving average support is effective: Is the stock price still running above the 10-day (or 20-day) moving average? Does it hold every time it pulls back?
- Whether the price-volume relationship is healthy: Does it rise on volume? Does it pull back on low volume? If so, it indicates orderly capital flow, not distribution.
- Whether there is "accelerating to the top": Only when the stock price shows consecutive large bullish candles, rapidly moving away from the moving average (e.g., bias ratio > 15%), accompanied by huge volume, is it a danger signal.
Core logic: If a stock can rise along the 10-day moving average, it indicates extremely high control by major funds, and profit-takers are not eager to cash out. This is often the early characteristic of a main upward wave, not the end.
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