Shrinkage (shrinkage) refers to the continuous shrinkage of market trading volume, which is usually characterized by small price fluctuations and inactive trading. This may be due to market participants' lack of confidence in the market, strong wait-and-see mood or fewer investment opportunities. In the shrinking market, investors usually take a cautious attitude and have relatively few transactions.
Heavy volume is the antonym of shrinkage, which refers to the continuous increase of market trading volume, usually characterized by large price fluctuations and active trading. Volume market usually reflects that market participants have more confidence in the market, more investment opportunities and active trading. In a market with large trading volume, investors usually adopt a more active trading strategy.
In the financial market, shrinkage and volume are common changes in trading volume. Through the observation and analysis of shrinkage and turnover, investors can understand market sentiment and capital flow, so as to adjust trading strategies and improve investment returns.