Knowledge expansion:
1. Basic indicators of futures: volume, position and price. The main basic indicators of technical analysis of futures prices are opening price, closing price, highest price, lowest price, trading volume and open contract volume:
(1) Opening price, the price generated in call auction five minutes before the opening.
(2) Closing price, the price generated by call auction five minutes before the market closes.
(3) The highest price is the highest transaction price of the day.
(4) The lowest price is the lowest transaction price of the day.
(5) Volume refers to the number of contracts for a commodity futures of an exchange within a certain trading time. In the domestic futures market, the sum of trading volume is used to calculate trading volume.
(6) Open position refers to the amount of a commodity futures contract that has not been hedged and delivered in kind after being bought or sold, also known as open position or short position.
2. The relationship between volume, position and price. Changes in trading volume and positions will affect futures prices, and changes in futures prices will also cause changes in trading volume and positions. Therefore, analyzing the changes of the three is conducive to correctly predicting the trend of futures prices.
(1) The volume of transactions and open contracts have increased, and prices have risen, indicating that new buyers are buying in large quantities, and prices may continue to rise in the near future.
(2) The volume of transactions and open contracts decreased, and the price rose, indicating that a large number of short positions were closed, and the price rose in the short term, but it may fall back soon.
(3) With the increase of trading volume, the price rises, but the amount of open contracts decreases, indicating that both short sellers and short sellers are closing their positions in large quantities, and the price will fall immediately.
(4) The increase of trading volume and positions and the decrease of prices indicate that short sellers sell contracts in large quantities, and prices may fall in the short term, but if they sell excessively, prices may rise.
(5) Trading volume and positions decrease, and prices fall, indicating that a large number of short sellers are eager to sell their positions, and prices will continue to fall in the short term.
(6) The increase of trading volume, the increase of open positions and the decline of prices indicate that when the price falls due to short sellers' closing positions, short sellers may make profits by closing positions one after another, and the price may turn to rebound.