It is very important to analyze the transaction volume in actual operation. Due to the different sizes of circulation, it is of little significance to simply compare the transaction amount. When investigating the turnover rate, we should not only look at the number of shares traded, but also analyze the turnover rate. The turnover rate refers to the ratio of the cumulative number of shares traded in a stock to the outstanding shares in a certain time range. For example, the weekly turnover rate refers to the turnover of individual stocks in a week, that is, the cumulative turnover rate of each single day in a week. The change analysis of turnover rate should be said to be far more reliable than the comparison of other technical indicators and the judgment of form. The turnover rate can not only indicate the adequacy of a stock's trading volume and the activity of trading in a specific time, but more importantly, it is also an important reference index to judge and measure the differences between long and short sides. The low turnover rate shows that the two sides are basically in agreement, and the stock price will generally fall slightly or step into sideways consolidation due to the downturn in the transaction. The high turnover rate shows that there are great differences between the long and short sides, but as long as the active transaction situation can be maintained, the general stock price will show a slight upward trend.

For the observation of turnover rate, investors should pay more attention to the situation that turnover rate is too high and too low. Too low or too high turnover rate may be the leading indicator of stock price changes in most cases. Generally speaking, after a long period of stock price adjustment, if the turnover rate remains at a very low level for more than a week (such as the weekly turnover rate is below 2%), it often means that both long and short sides are watching. Since the strength of the empty side has been basically released, the stock price has basically entered the bottom area at this time. Since then, even the general good news may trigger a strong rebound in individual stocks.

For the emergence of high turnover rate, investors should first distinguish the relative position of high turnover rate. If the previous stocks are traded in large quantities after a long period of downturn, and the high turnover rate can last for several trading days, it can generally be regarded as a more obvious sign of new capital intervention. At this time, the credibility of high turnover is better. Because it is at the bottom of the trading volume, coupled with sufficient transactions, such stocks should have a relatively large room for growth in the future, and it is also very likely to become a strong stock. It is necessary for investors to pay attention to this situation. If a stock suddenly changes hands at a relatively high level, the volume of transactions suddenly increases, which is generally more likely to be a precursor to decline. This situation is mostly accompanied by the favorable introduction of individual stocks or the broader market. At this time, the chips that have been profitable will take the opportunity to go out and successfully complete the issuance. The "good things are bad" situation appears. Investors should be cautious about this high turnover rate.

In addition to distinguishing the relative position of high turnover rate, investors should also pay attention to the duration of high turnover rate, whether it is a stock that has just been lifted or a stock that has been lifted for a long time. In most cases, some institutions with large positions will take self-help measures to attract followers because they can't get out. For those varieties that have changed hands in an all-round way but have limited growth, we should be vigilant. However, for newly listed new shares, if there is little difference between the opening price and the issue price, and they can keep a good change of hands for a long time, you can consider timely intervention.

In fact, no matter whether the turnover rate is too high or too low, as long as the cumulative increase in the previous period is too large, it should be treated with caution. Historically, when the single-day turnover rate exceeds 10%, the probability of individual stocks entering short-term adjustment is too high, especially when the turnover rate exceeds 7% for several consecutive trading days, we should be more careful.