Have you ever wondered Meaning of colors in stocks What is it? This article will decode the detailed meaning of each color on the electronic board.
Meaning of colors in stock chart
The stock market, with its constant fluctuations, is always a colorful “picture”. Not only are the numbers dancing, the electronic stock board also uses different colors to represent the status of stocks and the market. Understanding Meaning of colors in stocks is one of the investment knowledge The most basic and important that any investor, whether new or experienced, needs to master. This article will provide you with an overview, details and in-depth understanding of the meaning of each color, helping you to “read” the market more easily. Why is it so important? Because, by understanding their meanings, you will be able to:
- Quickly grasp the market situation.
- Evaluate the buying and selling power of stocks.
- Analyze price trends and make better investment decisions.
- Avoid unnecessary mistakes due to misunderstanding information.
Meaning of colors in stocks
The electronic stock board is the main “interface” that investors use to monitor the market. On the electronic board, each color represents a different state of the stock price compared to the reference price. The reference price is the closing price of the previous trading session (except for some special cases).
What is red in stocks?
Red is one of the most frequently appearing and noticeable colors on electronic boards.
- Meaning: In stocks, red indicates that the stock price is decreasing compared to the reference price. The stronger the decrease, the darker the red color (however, the intensity depends on the interface of each securities company).
- For example: ABC stock has a reference price of 20,000 VND. If the current price of ABC is 19,500 VND, the stock will be displayed in red.
- Mentality: Red often evokes feelings of anxiety, warning of a decline. However, experienced investors may see red as an opportunity to buy stocks at lower prices.
- Recommendation:
- If your portfolio is all red, take a calm look.
- Don't sell off when you see a sharp drop in stocks, but see if there is any negative news.
Yellow price in stocks
The yellow color on the electronic board has a neutral meaning.
- Meaning: Yellow price in stocks indicates that the stock price is equal to the reference price, meaning there is no change compared to the previous trading session.
- For example: XYZ stock has a reference price of 50,000 VND. If the current price of XYZ is still 50,000 VND, the stock will display yellow.
- Mentality: Yellow does not usually evoke strong emotions like red or blue. It represents temporary stability of stocks.
- Recommendation:
- Other factors should be considered, do not rush into a decision.
What is white stock code?
White on the electronic board may appear in some special cases.
- Meaning: What is white stock code?? White usually indicates that the stock has not been traded during the session, or that the stock is newly listed and has no reference price. It can also indicate that the stock has been suspended from trading for special reasons (for example, the company has important information that has not been announced, violating regulations, etc.).
- For example: A newly listed company, on the first trading day, the stock may show white before the first matched transaction.
- Recommendation: Need to understand the reason for white.
Meaning of green in stocks
Green (green) is the color that investors expect.
- Meaning: Green indicates that the stock price is increasing relative to the reference price. The higher the increase, the darker the green.
- For example: DEF stock has a reference price of 30,000 VND. If the current price of DEF is 31,000 VND, the stock will be displayed in green.
- Mentality: Green creates a feeling of positivity, optimism, and hope for the future. stock returns.
- Recommendation:
- Green is not necessarily good if you buy to chase stocks that have increased rapidly.
Meaning of blue color in stocks (blue)
Blue (or blue-green) often appears when a stock hits a ceiling.
- Meaning: Blue shows that the stock price is hitting the ceiling, meaning it has reached the maximum increase allowed during the trading session.
- For example: According to the current regulations of the HOSE (HCMC), the ceiling increase is 7% compared to the reference price. If GHI shares have a reference price of VND 10,000 and increase to VND 10,700 (increase of 7%), the shares will be displayed in blue.
- Mentality: Blue color creates a feeling of excitement and extreme excitement for investors.
- Recommendation:
- Need to consider carefully, compare correlation with other stocks, industries...
Meaning of purple in stocks
Purple often appears when stocks hit the floor.
- Meaning: Purple indicates that the stock price is hitting the floor, meaning it has reached the maximum drop allowed in a trading session.
- For example:
- HOSE floor: The floor price reduction is 7% compared to the reference price.
- HNX Floor (Hanoi): The floor price reduction is 10% compared to the reference price.
- UPCOM floor: The floor discount is 15% compared to the reference price.
Color regulations in securities
The use of colors on electronic stock boards is not random but follows specific regulations. Color regulations in securities was established to ensure consistency, transparency and understanding for all investors.
- Stock Exchange: In Vietnam, the Ho Chi Minh City Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX) are the two main agencies that regulate the colors displayed on electronic boards.
- Securities Company: Securities companies must comply with the regulations of the Exchange and display the correct colors on their electronic boards.
- Purpose:
- Helps investors easily identify stock status (increase, decrease, flat, ceiling, floor).
- Create a “common language” for the stock market, helping everyone understand information in a unified way.
- Increase transparency and fairness in the market.
Explaining Stock Orders (Regarding Colors)
To understand more about Meaning of colors in stock chart, we need to learn about basic trading orders, because these orders are the deciding factor in the change in stock color.
ATO Order (HOSE Floor)
- Define: ATO (At The Opening) order is an order to trade at the opening price. This order is only entered into the system during the periodic order matching session to determine the opening price (9:00-9:15 a.m. on the HOSE floor).
- Characteristic:
- Priority is given to matching limit orders (LO).
- Without specifying a specific price, the system will automatically determine the best matching price.
- If not fully matched, the ATO order will be canceled after the regular order matching session.
- Regarding color: An ATO order can cause the stock to turn green (if the opening price is higher than the reference price), red (if the opening price is lower than the reference price), or remain yellow (if the opening price is equal to the reference price).
ATC order (HOSE and HNX floors)
- Define: ATC (At The Closing) order is an order to trade at the closing price. This order is only entered into the system during the periodic order matching session to determine the closing price (14:30-14:45 on HOSE and HNX).
- Characteristic: Similar to an ATO order, but applies to the closing price.
- Regarding color: ATC orders can change the color of the stock at the end of the trading session.
LO Order (Limit Order)
- Define: A LO (Limit Order) is an order to buy or sell shares at a specified price or better.
- Characteristic:
- Valid until matched or cancelled.
- Most commonly used.
- For example: Place a LO order to buy 100 ABC shares at VND20,500. This order will be filled if someone sells ABC at VND20,500 or lower.
- Regarding color: LO orders may change the color of the stock if executed at a price different from the reference price.
MP Order (Market Order – HOSE)
- Define: MP (Market Price) order is an order to buy or sell stocks at the market price (best available price).
- Characteristic:
- Priority immediate matching.
- Can match at multiple price levels.
- There are sub-commands such as:
- MTL (Market To Limit) Order: If not all match, the remaining part will be converted to LO order.
- MAK (Match And Kill) command: If not all match, the rest will be discarded.
- MOK (Match Or Kill) command: If the entire order is not matched, it will be canceled immediately.
- Regarding color: MP orders often change the color of stocks quickly due to immediate order execution.
Other Orders (HNX and UPCOM Floors)
- PLO (Post Limit Order): After-hours trading orders (only applicable to HNX floor).
- MAK, MOK, MTL commands: Available on HNX floor with the same meaning as on HOSE floor
- Continuous matching orders: There are no ATO or ATC orders on UPCOM.
Conclusion
So, together we have discovered and decoded Meaning of colors in stocksUnderstanding these colors will not only help you “read” the market quickly, but also lay the foundation for you to make smarter investment decisions. However, it is important to remember that colors are only part of the whole picture. HVA believes that to be successful in the stock market, you need to combine knowledge of colors with technical analysis, fundamental analysis, risk management and solid trading psychology. Continue to learn, gain knowledge and experience to become a wise investor! Wish you success on your investment path.
