What does the decline in positions mean?
The relationship among positions, volume and price can be divided into four clear situations: 1, where the volume increases (indicating that trading is active), the position increases (indicating that funds actively enter the market), and the price is pushed up (indicating that bulls actively open positions and push up prices). 2. The volume of transactions has shrunk and the position has decreased (indicating that the funds are out). If the price falls at this time (indicating that many parties take the initiative to close their positions), they can be short. 3. As the trading volume rises, the positions also rise. The price has fallen (indicating that bears are active). 4. The volume of transactions fell, and the positions also fell. Price rises (indicating that short positions are actively closed). There are two conditions to be observed. These two situations need to be analyzed in combination with graphs: a. If the trading volume increases, the graph of decreasing positions is at the bottom (indicating that short positions are mainly closed, so 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 inflation), b. If the trading volume increases, the positions decrease and the price falls. At this time, many positions will take the initiative to close their positions. If funds enter the market, positions will increase and prices will rebound. The first four situations are the most reliable. The latter two are not sure.