You need to learn to look at indicators when entering the market, and it is impossible to invest blindly without looking at indicators. Especially in the stock market, the turnover of stocks is very important. The following is how to treat the volume reduction compiled by Bian Xiao, hoping to help everyone.
What do you need to see the volume decrease?
Shrinkage and trading volume can directly look at the change of trading volume of the column under the K-line chart, which is often referred to as VOL by investors. If the column of trading volume is shorter and shorter than the previous trading days, it means that it is shrinking. If compared with the previous trading days, the energy column begins to get longer, which means it is heavy volume.
Under normal circumstances, the reduction of turnover mainly depends on the market turnover, which indicates the market activity and the scale of funds. The so-called volume and shrinkage simply refer to the increase or decrease of volume, which forms a state of release and contraction in the volume index. From the perspective of the stock market, the volume and shrinkage essentially reflect the active trading situation.
There will be several forms of the market, the rising volume, the falling volume, the rising volume and the falling volume. Shrinkage and turnover are only external manifestations, and investors need to understand deeper significance and trends. In addition, investors can look for the average trading volume line. The trading volume for a period of time is below this average, and then one day it exceeds the average. If you stay on it for a while, gradually falling below it is shrinking.
How to treat the volume of K-line chart?
Stock turnover refers to the number of transactions of stocks on that day, which is expressed by histogram. If the energy column is much higher than the previous trading days, it is heavy, and if the energy column is continuously shorter than the previous days, it is shrinking. Shrinkage generally occurs in the middle of the trend, and heavy volume generally occurs at the turning point of the market trend.
Generally speaking, the trading volume of the K-line chart in the stock market is presented in the form of columns, in which the red column represents the trading volume of stocks whose closing price is higher than the opening price, and the green column represents the trading volume of stocks whose closing price is lower than the opening price. Moreover, investors need to pay attention to the fact that as long as the stock price breaks through the previous high point in a huge amount on the K-line chart and shows a strong upward trend, it is a breakthrough in volume.
If a stock is heavy at the bottom, it is very likely that the main force will open a position at the bottom. If there is a heavy volume at the top, it may indicate that the main force is shipping, or investors are cutting meat. If it is on the time-sharing chart, the yellow vertical line under the time-sharing curve is long and dense, indicating heavy volume, and thin and short is shrinkage.
When users enter the market, it is necessary to analyze the K-line chart in order to better grasp the impact of trading volume on subsequent stock prices. Naturally, careful analysis of the K-line chart can also show the main operation, which is conducive to investors' timely response.
Inventory volume contraction
The shrinkage of stock trading volume is a relative definition, which can be judged mainly by comparing with the trading volume of the previous day, which is the trading volume and vice versa. Generally speaking, there are only four situations in which the quantity can be enlarged and reduced: the price rises and shrinks, and it is bullish; The price has risen in volume and is bullish; Falling and shrinking prices, bearish; The price has fallen a lot and is bullish. Therefore, it is necessary to combine the market price to judge the shrinking volume.
In the market, due to the relative changes in volume and price, individual stocks will form various trends. Through the matching of trading volume and stock price trend, we can accurately judge the main intention and possible rising strength, so as to judge the phased buying point and phased selling point in time.
1 in the heavy volume market, the price increase of heavy volume can confuse many people and think that the market will continue to rise and ship.
In the shrinking market, we often say it is the bottom. The new low shrinkage is a symbol that bears are weak and unable to continue to kill. When the bottom of the volume appears, it is often the bottom of the stock price.
3 the volume of transactions has changed from enlargement to contraction. This market is generally accompanied by a sharp drop in share prices. Investors should lighten up their positions or leave the market to avoid being damaged by falling stock prices.
The volume of transactions has changed from shrinking to expanding, which means that the state of supply and demand has changed. Although the stock price is still sideways, buying has stepped in and popularity has become active. This is a bullish signal. Investors should focus on the stock at this time, and once the stock price is confirmed, they should enter the market in time to seize the rising opportunity.
Generally speaking, the change of quantity and energy in the market has its unique significance, so what we have to do after daily operation is to change according to the change of the market. Each quantity energy has its specific meaning, and the cooperation between each quantity energy and the stock price implies that a new market trend is taking shape.