: 1. What is an increase in shrinkage?
(1): Shrinkage increase means that the share price of a stock has risen, but the actual stock turnover has shrunk. Generally speaking, this situation shows that the stock price rise is not because it attracts the inflow of funds from the OTC market, but because the funds in the OTC market are killing each other. This shows that the rise of the stock price does not necessarily mean that the stock is suitable for buying. When investors analyze the stock market, the trading volume is often more intuitive than the stock price increase.
Two: what does the increase in shrinkage represent?
Shrinkage increases generally appear in two stock price development trends:
(1), when the stock price is at a low level, the shrinkage increases. This situation may be that the seller sells a small amount of share capital and the buyer is in an advantageous position. In this case, the stock price trend may continue to rise in the subsequent development;
(2) When the stock price is at a high level, the shrinkage increases. Generally, the increase in shrinkage at this time means that the buyer's bullish mentality is gradually weakened, and the new capital inflow trend is smaller, which means that the upward trend of the stock may gradually come to an end.
It should be noted that shrinkage increase is only a relative concept, and the meaning it can express is not absolute. Investors often need to make auxiliary analysis based on other analytical data.
Three: there will be an increase in the form of contraction, and there will be a decline in the middle. Let's briefly talk about the difference between these two situations.
(1) halfway up the mountain
When the stock price rises from a low level and shrinks, it shows that the main force has completed the opening of positions and started to raise the stock price, and all the color moving averages are in a rising state. At this time, investors should participate in time.
(2) Give up halfway
After the stock price began to fall from a high level, it shrank by a, fell for a while and then rose. This is because the stock price fell too much, and the main force failed to sell completely at a high level. At this time, the main force used less funds to raise the stock price again, creating the illusion of rising, so as to trick retail investors into buying stocks and achieve the purpose of shipping. At this time, retail investors should avoid participation and sell their stocks in time. After the shrinkage rises, the stock will continue to fall.
Four. As far as the market meaning of shrinking and rising forms is concerned, there are generally three points:
(1) investors are particularly optimistic about the market outlook. Only people buy it, but no one sells it, so it has shrunk dramatically.
(2) The shrinkage increase in the middle and low positions should be resolutely followed up and wait for profit.
(3) High shrinkage means stagflation, and investors should gradually reduce their positions.