There are four obvious situations:

1 The increase in trading volume (indicating active transactions), the increase in positions (indicating that funds are actively entering the market) and the upward push of prices (indicating that bulls are actively opening positions and pushing up prices) can be done more.

2. The volume of transactions is shrinking, and the positions are reduced (indicating that the funds are out). If the price falls at this time (indicating that many parties are actively closing their positions), they can be short.

3. As the turnover increases, the positions also increase. If the price falls (indicating that bears are active), you can short.

4 the volume of transactions decreased, the positions also decreased, and the prices rose (indicating that the short positions were actively closed).

There are two conditions that need to be observed and combined with graphic analysis:

A If the graph of volume increase, position decrease and price increase is at the bottom (indicating that short positions are mainly closed, it is advisable to wait and see), if the graph is at the top (still indicating that short positions are closed, on the eve of the surge).

B trading volume increased, positions decreased and prices fell. At this time, many parties took the initiative to close their positions. If funds enter the market, positions increase and prices can rebound.

The first four situations are the most reliable. The latter two are not sure.

Volume refers to the total number of contracts bought or sold in a period of time. In China, the sum of buying and selling is used to calculate the transaction volume. Open contracts refer to the number of contracts that have not been hedged and delivered at the close of a certain day. A contract must have a buyer and a seller, so the number of long positions is equal to the number of short positions.

If both buyers and sellers establish new positions, the positions will increase. If both sides close their positions, the positions will be reduced. If one party opens a new trading position and the other party closes the original trading position, the position remains unchanged. By analyzing the change of positions, we can know whether the funds flow into or out of the market. Changes in trading volume and positions will affect futures prices, and changes in futures prices will also cause changes in trading volume and positions. Therefore, analyzing the changes of the three is conducive to correctly predicting the trend of futures prices.

First, the trading volume and positions increase with the price increase, indicating that the number of contracts bought and sold by new traders exceeds that of the original traders, and the buyer's power among new traders overwhelms the seller.

Second, the increase in trading volume and positions and the decline in prices indicate that more and more new traders are entering the market, and the power of sellers among new traders is overwhelming the buyers.

Third, the trading volume and positions decrease with the price drop, which shows that the strength of the original buyer exceeds the strength of the original seller when selling the flat position, that is, the bulls are more willing to close their positions rather than actively increase short positions in the market.

Fourth, the decline in trading volume and positions and the increase in prices indicate that the strength of the original seller in the market exceeds the strength of the original buyer to sell and close positions.

Under normal circumstances, if the volume, position and price are in the same direction, the price trend of this futures product can last for a period of time; If the two are opposite to the price, the price trend may turn. Of course, this needs to be further analyzed in combination with different price patterns.