Volume represents the total amount of market trading activities on that day. It is the total number of futures contracts traded in a day, or the total number of shares changed hands in the stock market on a certain day. Futures have no order quantity, but there are positions. Open positions are the total number of open futures contracts held by all market participants at the end of the day. Most technical analysts in financial markets use multidimensional market analysis methods to track the movement of three groups of numbers-price, trading volume and position. Volume analysis is applicable to all markets. Volume represents the total amount of market trading activities on that day. It is the total number of futures contracts traded in a day, or the total number of shares changed hands in the stock market on a certain day. Volume is recorded by the vertical line below the price bar at the bottom of the bar chart of the day. The longer the measuring stick, the greater the turnover of the day. Shorter bars represent smaller volumes. The vertical scale at the lower part of the trend chart is used to help plot the transaction volume data. General rules for judging trading volume and open position. Technical analysts in the futures market incorporate trading volume and positions into market analysis. The rules for judging trading volume and open position are usually combined because they are quite similar. However, there are some differences between the two that must be mentioned. Here, the general rules of both will be introduced. Price, volume, position, market rising, rising, strong rising, falling, weak falling, rising, weak falling, falling. If both trading volume and positions are increasing, then the current price trend is likely to continue to develop in the current direction (whether it is rising or falling). However, if both trading volume and positions are decreasing, then this behavior can be regarded as a warning that the current trend may be coming to an end. Volume level measures the seriousness or urgency behind price changes. Higher turnover rate reflects higher intensity or urgency. By monitoring the level of trading volume accompanied by price behavior, technical analysts can better measure the buying and selling pressure behind the market movement. Therefore, this information can also be used to confirm the price movement or warn that the price behavior is not credible. To put it more succinctly, the rule is that the trading volume should increase or expand in the direction of the existing price trend. In the upward trend, when the price moves upward, the trading volume should increase, and when the price goes back, the trading volume should decrease or shrink. As long as this pattern continues, it means that the trading volume is confirming the price trend. Trend analysts should also pay attention to departure signals. If the volume decreases when the price trend crosses the previous peak, deviation will occur. This behavior warns trend analysts that buying pressure is weakening. If the volume still shows an increasing trend when the price is adjusted back, then analysts will start to worry that the upward trend is in trouble. When dealing with the price model, the transaction volume is regarded as an important indicator. If the market turnover is very small when moving to a new high in the process of head formation, but it is very large when falling to the neckline later, the first signal of head and shoulders will appear. In double and triple peaks, the volume of each continuous peak is smaller, but it is larger when moving down. A continuous shape, such as a triangle, should be accompanied by a shrinking volume. Generally speaking, if the signal given by the breakthrough is true, then the end of all price patterns (breakthrough points) should be accompanied by active trading activities. By monitoring price and trading volume at the same time, we are actually using two different tools to measure the same object-stress. Based on the fact that the market tends to rise, we can see that the buying pressure is greater than the selling pressure. Therefore, it can be inferred that a large number of transactions should take place in a direction consistent with the current trend. Technical analysts believe that quantity can go first, which means that the upward pressure in the upward trend is reduced, or the downward pressure in the downward trend is reduced, which is actually reflected in the volume figures, and then confirmed in the reversal of the price trend. Rules for judging position change: 1. Because the market is rising in the upward trend, the total position is also increasing, and new funds are flowing into the market, which reflects that the buyer is radical and therefore bullish. 2. However, if the market is rising and the positions are falling, then the rising market is mainly caused by short covering (the damaged short positions are forced to cover these positions). At this point, the funds are leaving rather than entering. This kind of market behavior is bearish, because once the necessary short covering ends, the upward trend is likely to lose momentum. 3. Because the market is in a downward trend and the positions are increasing, technical analysts know that new funds are flowing into the market, which reflects that new shorting is more active. This kind of market behavior increases the possibility that the downward trend will continue, so it is bearish. 4. However, if the total position falls with the market, then this price drop is caused by the loss of confidence or the loss of long positions being forced to lighten up. This market behavior is considered to indicate that technical conditions are enhanced, because once the positions are reduced enough to show that most of the damaged bulls have finished selling, the downward trend may end. Let's sum up these four points: 1. It is bullish to add positions in the upward trend. 2. In the upward trend, lightening positions is bearish. 3. It is bearish to add positions in the downward trend. 4. It is bullish to lighten the position in the downward trend. Let's sum up some important factors such as price, volume and position. 1. All markets use volume; These positions are mainly used in the futures market. 2. The futures market only uses total trading volume and total positions. 3. The increase in turnover (and positions) indicates that the current price trend may continue. The decrease of trading volume (and positions) indicates that the price trend may be changing. 5. Quantity comes before price. Changes in buying pressure or selling pressure can often be detected from the volume before the price. 6. In the upward trend, the sudden increase or decrease of positions is often an alarm of trend change. (This article is only used in the futures market. ) 7. The ultra-high position at the top of the market is very dangerous and will increase the downward pressure. (This article is only used in the futures market. 8. Masukura during consolidation strengthened the subsequent market breakthrough. (This article is only used in the futures market. 9. The increase of trading volume (and positions) is helpful to confirm the end of price pattern and the progress of other important trend charts that mark the beginning of new trends.