1, the decline in shrinkage indicates that investors in this stock have no intention to trade. Market sentiment is extremely bleak. At this time, many parties are often expecting a new round of market rise, but the short-term market rise is difficult, and the operation is reduced or partially eliminated. Here, the game between long and short sides has formed a shrinking decline. The decline in shrinkage mostly shows that the stock is weak, and only a few cases are washing dishes.

2. In the case of decreasing contraction. We must combine our analysis with the position of the contraction decline stage, because the specific performance of the contraction decline in the decline stage and the rise stage is different. The former is often a large outflow of funds, and the funds in the market are unintentionally held, and the decline is uncontrollable. The latter is caused by the main initiative to wash dishes, so the range is controllable, and the market outlook is expected to usher in a more obvious surge.

3. The trading volume analysis standards of different sectors and different stocks. There should be a difference. For example, the turnover rate of large-cap stocks exceeds 5%, which is already a large turnover. For small-cap stocks with active speculation, the turnover rate may exceed 10% to be considered as a substantial turnover. We also need to know this, because the decline of shrinkage rate is caused to some extent.