--- title: "This is the stock selection criteria" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/39528551.md" description: "The only criterion for judging "whether to buy": For trend structure, don't look at "percentage gain"; look at these 3 structural signals: Is the moving average support effective: Is the stock price still operating above the 10-day line (or 20-day line)? Does it hold every time it pulls back? Is the price-volume relationship healthy: Does it rise on high volume? Does it pull back on low volume? If so, it means capital is flowing in and out in an orderly manner, not being distributed. Is there "accelerated topping": Only when the stock price has consecutive large bullish candles, rapidly deviates from the moving average (e.g., deviation rate > 15%), and is accompanied by huge volume, is it a danger signal..." datetime: "2026-03-25T22:28:39.000Z" locales: - [en](https://longbridge.com/en/topics/39528551.md) - [zh-CN](https://longbridge.com/zh-CN/topics/39528551.md) - [zh-HK](https://longbridge.com/zh-HK/topics/39528551.md) author: "[Aileen Li](https://longbridge.com/en/profiles/17553246.md)" --- # 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**: 1. **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? 2. **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. 3. **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.