# He Xun Investment Advisor Xu Changping: Indicators That Don't Lie

The period from 9:35 to 9:55 after the market opens is a critical window for observing market sentiment and capital flow. Early well-known trading funds like Zhang Mengzhu have relied on this indicator to gradually build their trading systems during downturns. This indicator is simple and straightforward, especially suitable for office workers who don’t have time to monitor the market continuously—it is the turnover rate.

Trading volume may be distorted by wash trades, but the turnover rate more accurately reflects a stock’s activity level and capital participation. Different ranges of turnover rate correspond to different trading strategies, as detailed below:

• Turnover rate below 3% indicates a lack of capital interest and low popularity; it can be temporarily ignored.

• Turnover rate between 3% and 7% is often a sign of institutional tentative accumulation; consider participating with a small amount.

• Turnover rate between 7% and 10% requires close attention; it is recommended to participate with about 30% of your position.

• Turnover rate between 10% and 15% signals that retail traders are starting to enter, often accompanied by good profit opportunities.

• Turnover rate between 15% and 25% indicates a resonance of popularity and heat; the probability of a main upward trend starting is higher, and you can consider participating with about 60% of your position.

• Turnover rate exceeding 30% warrants increased caution, as it usually indicates overheating or approaching a short-term top; prepare to gradually reduce your holdings.