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How to understand the need to reduce positions when heavy volume falls. A new low is a bottom sign when volume shrinks. A recovery in incremental volume is the key. Turn back and confirm that you need
How to understand the need to reduce positions when heavy volume falls. A new low is a bottom sign when volume shrinks. A recovery in incremental volume is the key. Turn back and confirm that you need to enter the market.

An obvious heavy volume decline is a confirmation of the decline, which means it will continue to fall in the future, so it is necessary to reduce positions and stop losses in time

A new low in volume shrinkage means that the decline has no volume and no trading volume support. It means that the market does not recognize the decline, so this new low may be the bottom, and the market outlook is bullish.

Incremental rebound means that there is a rise and there is trading volume, that is, the market recognizes the rise.

Return confirmation means that it rises, then falls back a little, and then rises again. Falling back a little in the middle is a process of confirming the market's will, whether it is really going to rise. If it is true, then it will go back and continue to rise after falling back.