The increase in trading volume refers to the phenomenon that the price shows an upward trend when there are a large number of transactions in stocks or other financial markets. Trading volume refers to the number of stocks or other financial products bought and sold in a certain period of time. Usually, the increase in trading volume is considered as a positive expression of market sentiment, which means that investors are more optimistic about the market and think that there is still room for price increase.
2. The significance of high volume increase refers to the phenomenon that a large number of transactions occur and prices continue to rise when prices are already at a high level. Compared with the low increase of trading volume, the high increase of trading volume has more market significance, because it usually reflects that there is more purchasing power in the market, and investors' confidence and enthusiasm for the market is still high.
The significance of the large increase mainly includes the following points:
The increase in high turnover shows the strength of market buying. When the price is already at a relatively high level, investors are usually cautious about further rise. If the transaction volume is large and the price is still rising, it shows that there is enough purchasing power in the market to push the price up. In this case, investors can trade with more confidence.
The increase in high turnover shows the enhancement of market confidence. Investors' confidence in the market is one of the important factors to promote the market trend. When the price is already at a relatively high level, investors generally believe that the risk of price adjustment is greater, so their confidence in the market may be weakened. If the transaction volume is large and the price is still rising, it shows that investors still have high confidence in the market and are willing to continue buying, betting that the price will continue to rise.
The increase in high turnover may indicate that the upward trend of the market will continue. The upward trend of the market refers to the phenomenon that prices continue to rise for a period of time. When the price is already at a relatively high level, investors usually worry that the price will be adjusted or reversed. If the transaction volume is large and the price is still rising, it shows that the buying power in the market is very strong, which may push the price to rise further and the upward trend will continue.
3. How to judge the rise of high volume? Judging the rise of high volume requires comprehensive consideration of two factors: price and volume. The following are some commonly used technical indicators and methods:
You can observe the relationship between price trend and trading volume. In the case of high volume growth, the price usually shows an obvious upward trend, and the volume is obviously greater than the daily volume level. In this case, the positive correlation between price and trading volume will be more obvious.
It can be judged by the volume index. The commonly used turnover indicators are the moving average of turnover (VMA) and the relative intensity index of turnover (VRSI). When VMA or VRSI is at a high level and the price continues to rise, it can be considered that there has been a high volume increase.
You can observe the market sentiment and the behavior of market participants. If the market is generally optimistic, investors actively participate and are willing to chase up, then the possibility of a surge in volume will increase. If there is a large amount of capital inflow in the market, such as the large amount of bills paid by institutional investors, it may also indicate the emergence of high volume increase.
It should be noted that judging the high growth of trading volume does not mean that there will be a continuation of the upward trend. The market is uncertain and the price may be adjusted or reversed at any time. Investors should comprehensively consider various factors and adopt scientific and reasonable risk control strategies when making trading decisions.