In this article, you will learn how to find out before a relatively large price jump. This technique can be effective in daily time. But before that, you should familiarize yourself with the three concepts of “last price”, “closing price” and “base volume”.
The closing price and the price of the last transaction are not necessarily equal. The last transaction price can be more, less or equal to the closing price. The last price is the price at which the share is traded for the last time during the trading day. The closing price is the weighted average of all trades that take place on a stock in a trading day.
Of course, this weighted average is applied on the condition that the share transactions have filled the base volume. Otherwise, the final price will be deducted according to the amount that was less than the base volume. Both “last price” and “final price” are calculated instantly on the Rahvard site. In the trading systems of the stock exchange, both the closing price of the moment and the closing price of the previous day are entered on the corresponding page of each symbol.
Tehran Stock Exchange Company defines the base volume in this way: the number of one type of securities that must be traded every day so that all percentage changes allowed on that day are included in determining the next day’s price. For a better understanding of the base volume, pay attention to this example; Suppose the volume of the basis considered for a symbol is 200 thousand shares.
If 100,000 shares are traded in one trading day and the share has a 4% price growth, because the number of share transactions was half of the base volume, the share price growth will be divided by two and tomorrow morning it will open with 2% growth instead of 4%. The base volume for each stock exchange symbol is determined by the stock exchange organization and is listed on the tsetmc site, the Revard site, and all trading systems of the stock exchange on the special page of the same symbol.
Sometimes it happens that with one or more big purchases, the price of a share grows suddenly. In this case, it will take some time for the final price to reach the last price. Because as mentioned, the final price is an average of the transactions and it takes some time for this average price to rise. This is an opportunity that the trader can enter into the transaction and benefit from the price difference between the last price and the closing price that is determined at the end of the trading day.
An additional explanation is that in fact, because the final price is calculated instantaneously and is an average of all the transactions that have been done in one day, it takes a little time to be affected by the last price and grow. But how can such a thing be done? You can use search filters to detect such a situation. To do this, perform the following steps:
The bottom line is that the results you get from the filters should not be taken as revelation. Rather, these results give you an initial idea to buy profitable shares, which you should check their chart and other trading information and finally make the best decision.