Usually it is the following four situations:
The volume of transactions has gradually increased, and the positions have also increased simultaneously. This kind of situation is the most common in the futures trend, which mostly occurs in the early stage of unilateral market. At this time, the expansion of trading volume is due to the active entry and exit of short-term funds, while the expansion of positions shows the accumulation of long and short energy. In this case, you can feel the change of the strength of the long and short forces from the disk, and at the same time judge the changing direction of the market in combination with the trend of the previous market.
The trading volume gradually decreased and the positions gradually increased. This situation is often a precursor to the coming of a big market. The decrease in turnover is due to the gradual balance of price fluctuation range, which makes short-term funds unprofitable; However, the increase in positions means that the differences between long and short sides have increased. There are few false breakthroughs in the follow-up trend of this situation. Once it breaks out, there should be at least one intermediate market.
The trading volume gradually increased and the positions gradually decreased. This kind of situation generally appears in the relay market, and is accompanied by the phenomenon of killing more and more. Because the market is beneficial to one of the long and short sides, the other side has fled and their positions have gradually decreased. However, the rapid fluctuation of prices provided a good opportunity for short-term speculation, so short-term funds actively intervened and the transaction did not decrease. In this case, there may be a feeling of improvement in the medium term, but in fact, the original trend will continue.
The trading volume gradually decreases, and the positions gradually decrease. This situation mostly occurs at the end of a wave of market, and the synchronous contraction of trading volume and positions proves that both long and short parties or one of them lose confidence in the market outlook and the funds are gradually withdrawing. If this situation continues to develop, it will provide favorable conditions for new capital intervention and become a precursor to change.