There is an old saying in the stock market: "technical indicators are ever-changing, and trading volume is the real business." It can be said that the transaction volume directly indicates the final recognition degree of the technical form of the market by both long and short sides in the market at a certain moment. Here are two typical situations for some analysis.
First, the volume is moderate. This refers to the continuous moderate and heavy volume pattern of a stock that suddenly appears like a "Yamagata" after the previous period of continuous downturn. This kind of roll shape is called "roll pile". There is a phenomenon of "quantity pile" at the bottom of individual stocks, which can generally prove that there are strong funds involved. However, this does not mean that investors can intervene immediately. Generally, after the right amount of stocks appear at the bottom, the stock price will rise with the volume, and the stock price will be adjusted appropriately when the volume shrinks. There is no fixed time pattern for this adjustment, ranging from ten days to several months, so investors must buy on dips in batches at this time, and have enough patience to wait until the reasons for supporting buying are not proved wrong. It should be noted that when the stock price rises moderately in heavy volume, its adjustment range should not be lower than the low point in the early period of heavy volume, because if the cost area below the main position is adjusted, at least the selling pressure in the market is still very large, and the possibility of adjustment in the market outlook is greater.
Second, suddenly put a huge amount. The judgment of this trend should be divided into several different situations. Generally speaking, putting a huge amount in the process of rising usually means that many forces are exhausted and it will be difficult for the market outlook to continue to rise. The huge amount in the process of decline is generally the last concentrated release of empty power, and it is unlikely that the market outlook will continue to fall deeply, and the short-term rebound may be just around the corner. Another situation is the contrarian volume, which has a very amazing effect when the market is empty. This kind of stock often only lasts for a day or two, and then it accelerates to fall, which makes many investors who follow up on the day of the heavy volume attack quilt.
Stock trading first looks at the volume, which is a thermometer and barometer to measure the changes in the stock market. The rise and fall of stock prices are always influenced and restricted by the trading volume.
K-line chart, volume chart and moving average chart are recognized as the "three magic weapons" in the securities industry and indispensable "housekeeping skills" for investors.
Any technology, no matter how effective, will be affected by the general trend. Operation against the trend and the market will eventually fail. After comprehensively analyzing three different combinations of K-line combination, moving average combination and volume combination, the judged trading signal should be more reliable.