Significant shrinkage in trading volume indicates oversupply, a deserted market, sparse buying and selling, and declining trading volume.

Trading volume is a manifestation of supply and demand, which refers to the number of transactions for a certain transaction within a unit of time.

The following formula is used to express the transaction volume and transaction amount. The transaction quantity multiplied by the transaction price equals the transaction amount.

Situations that may occur when trading volume shrinks significantly are:

1. The market is about to change, and the direction may be up or down;

2. If it continues to fluctuate on the way down, the probability of going up is greater;

3. If it continues to fluctuate on the way up, the probability of falling is greater.