What Are the Overnight Stock Selection Techniques for Ultra-Short-Term Trading?

  • 2025-07-21


What Are the Overnight Stock Selection Techniques for Ultra-Short-Term Trading?


1. Understanding Late-Session Price Surges

  1. Market makers conserve strength—lifting prices late when selling pressure is low, using minimal capital.

  2. Unfinished selling by market makers—rapidly raising prices to continue unloading shares the next day.

  3. Market makers securing chips—after accumulating enough shares at the bottom, they push prices up to exit the cost zone.

  4. Sudden positive news—funds rush to buy (e.g., major announcements expected the next day).

  5. Trading near highs all day, closing at limit-up—shows strong bullish intent.

  6. Trading near sub-highs, late-session rally—if the market rebounds late, a limit-up suggests potential gap-up or continuation the next day.

  7. K-line manipulation—creating a "bald" bullish candle to fake confidence.

  8. Stock closes with a medium/large bullish candle (6%-10% gain).

  9. Trading volume spikes 2-3x—forming a single-day volume surge.

  10. Before the volume surge, small candles accumulate while the price trend creeps up.

  11. Breakout buy signal—if the stock breaks above a trendline connecting prior highs during the volume surge.


2. Late-Session Stock Selection Techniques

Market Assessment:

  • Check the 15-minute K-line chart. If it trends upward after 2:30 PM, consider late buys.

  • If the market falls all day, focus on post-2:00 PM movements.


Selection Criteria
:

  1. Float cap < ¥20B.

  2. Turnover rate >3%, with limit-up trends in the past 20 days.

  3. Intraday volatility <5% (ignore if price action is stable).

  4. Volume ratio >1.2.

  5. Filter符合条件的 stocks, sort by upward momentum (keep those rising 1-3%).

  6. Analyze late-session patterns and entry/exit points.


Buying Tips
:

  1. Stocks without major rallies—solid daily K-line, late-session volume surge (watch volume-price alignment).

  2. Buy strong stocks after pullbacks—enter on days 2-3 after a big red candle or during rebounds.

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