The second type: the volume of transactions decreases, the positions decrease, and the prices rise. This means that the long and short wait-and-see atmosphere is strong, reducing transactions, lightening positions and raising prices. It means that bears throw in the towel, start to take the initiative to close positions, push up prices, and lead to price increases in the process of lightening positions.
The third combination: increase in trading volume, decrease in positions and increase in prices. This combination shows that the empty side has taken the initiative to close the position. If it appears at the bottom, it shows that the price has risen slightly, because the price has fallen to the bottom, and the empty side has a good mentality, while many parties are worried and will not pull up immediately. However, if it appears at the top, bears are eager to close their positions and "flee for their lives" to chase up the price level, while bulls only passively close their positions at high positions and do not actively suppress their forces, thus showing the characteristics of a sharp rise in prices.
The fourth combination: volume increases, positions increase and prices fall. This means that both long and short positions add positions, but short positions take the initiative to add positions and sell at the price. The reason why sellers dare to chase is because they judge that there is still a lot of room for price decline. However, the bulls are unwilling to admit defeat and also passively add positions in the low position. Therefore, if this combination is oversold in a short period of time and seriously deviates from the average price, it will lead to short-term speculators and new multi-party intervention, some of them will cash out, and the price V-shaped reversal is more likely.
The fifth combination: the volume of transactions is reduced, the position is reduced, and the price is reduced. This combination shows that long and short positions reduce trading and tend to wait and see, but long positions are actively closing positions. The decrease in trading volume shows that bulls are more rational and are looking for the ideal price in no hurry, so the price decline is gentle, but the decline will maintain a trend.
The sixth combination: the volume increases, the position decreases and the price falls. This combination shows that both long and short sides have trading intentions, but short positions are unwilling to continue to increase their positions, while the decrease in positions and the fall in prices indicate that long positions are eager to close their positions and sell them after the price. The chasing power mainly comes from doing more stop-loss power. Therefore, after the price drops sharply, once the positions begin to increase, it means that new bulls begin to intervene, and those who think they are wrong re-enter the market, and the price may rebound sharply.