Hexun Investment Advisor Zanna: 90% of Retail Investors Don't Really Understand Call Auction

The first 10 minutes after the market opens directly determine your daily profit and loss. If you don’t study these 10 minutes thoroughly, how can you expect to make money in the market? Many people watch the market all day, but it’s better to focus carefully on these opening minutes. The auction phase is the hardest period for the big players to hide their intentions. From 9:15 to 9:25, what the big players want to do and how they do it is all reflected in the bidding chart. Unfortunately, most people don’t understand it or pay attention. Today, I’ll share practical skills for the auction phase. By understanding four key bidding signals, you’ll know whether a stock has a chance to hit the daily limit that day.

First, you must master the rules so you don’t lose out. Between 9:15 and 9:20, you can place or cancel orders — this is the probing period. Big players often place large orders during this time and cancel them in the last few seconds. If you impulsively jump in, you’ll likely be fooled. From 9:20 to 9:25, you can only place orders, not cancel — this is the real game of money. From 9:25 to 9:30, the system processes the orders, and this five-minute window better reflects the true intentions of the big players. Remember: the movement after 9:20 is what really matters; what happens before 9:20 is mostly theatrical.

How to read the bidding chart? It’s divided into three parts, and once you understand, it’s easy. The top line shows the matching price, which is the current price at which trades are executed. The middle bars show unmatched orders: red bars are buy orders that haven’t been filled, green bars are sell orders that haven’t been sold. The bottom bars show actual trading volume — don’t focus on color, just on length. Simply put, the top indicates market sentiment, and the bottom shows actual transactions. For example, if someone places a 12 yuan buy order for 1,000 lots, but only 500 lots are willing to sell, the actual traded volume is 500 lots, and the remaining 500 lots will be shown as a red bar on top. Conversely, if someone places a 2,000-lot sell order but only 800 lots are traded, the remaining 1,200 lots will be shown as a green bar. More red bars indicate outside funds rushing in; more green bars suggest insiders are eager to exit.

Now, the key point: understanding these four bidding signals is enough.

1. Stable price with all buy orders above and low trading volume. This indicates outside buyers are lining up, but insiders are unwilling to sell, locking in the chips. If the stock opens with some buying interest, it’s likely to surge, possibly hitting the limit-up. If volume supports it, this pattern can be followed.

2. Green bars turn into red bars, with strong buying in the last minute. Initially, buy orders are weak, and the price gradually declines with more green bars. But in the last two or three minutes, red bars suddenly increase, and volume rises. This shows big players are aggressively buying at the end of the auction, having previously suppressed the price to shake out weak hands. When you see this volume spike at the end, consider entering.

3. The stock hits the daily limit at open, then frequently cancels orders. The price starts at the limit-up, with high red bars, but soon many buy orders are canceled, bars shorten or turn green, and the price drops from the limit. This is clearly a manipulation: first, they set the limit-up to attract retail traders, then secretly cancel orders to distribute chips. Even if the stock hits the limit that day, it’s prone to breaking the limit and falling back. The next day, risks are higher. Avoid such stocks and wait.

4. Green bars gradually turn into red bars, with steady increase in buy orders. Initially, volume is small, but after 9:20, red bars appear one after another, and trading volume below increases, slowly pushing the price higher. This indicates steady accumulation by buyers. Stocks showing this pattern after opening often have continuation potential, making them worth watching even if you don’t trade that day.

These are the subtle tactics big players hide in the order book. If you don’t understand them, they look like a bunch of colorful bars; if you do, they reveal the operational roadmap of the big players.