The stock market will have many specific forms and will reveal a strong signal. The key is to see if investors can see through it. For example, the rise of bottom shrinkage is an obvious signal, but many investors don't understand what this means. Let's take a look at the detailed introduction.

What does it mean to increase the shrinkage at the bottom?

An increase in bottom shrinkage refers to a decrease in transaction volume but an increase in price. If this pattern appears, it will be regarded as a score. If it appears on the way up, it means that the main force has completed the opening of positions and started to push up the stock price. If it appears on the way down, it may also be that the main force is creating the illusion of rising, attracting retail investors to buy and then selling at a position higher than itself.

Many people say that the rising shrinkage at the bottom is a signal of rebound. In fact, this is right, but it is not absolute. After all, when the stock price rises, it is very important whether the volume can keep up. The increase in shrinkage is likely to be the main force to control the market, and retail investors need to be cautious.

Shrinkage and rise patterns have three market meanings:

1, investors are particularly optimistic about the market outlook, only people buy and no one sells, so the transaction volume is small.

2. The rise in shrinkage in the middle and low positions may be a wave of rebound, and you can follow up and wait for profit.

3. Shrinkage rising at a high level means stagflation. At this point, investors should gradually reduce their positions.

After reading the above introduction, I believe everyone has a better understanding of what the bottom shrinkage increases. There are many forms to explain the rise of bottom shrinkage, and investors need to analyze it according to the actual situation.