Many technical analysis enthusiasts like to use trading volume to analyze the stock market outlook. The so-called "price-quantity relationship" means that quantity comes first, and trading volume is often the forerunner of stock price. Many people think that the stock price can be manipulated, but the volume cannot be manipulated. This idea is wrong. When the main force wants to ship, it often uses the turnover to falsify and deceive the market. So how does the main force set the volume trap? What are the common volume traps?
What are the common volume traps?
Pull up the rewind, purpose: shipment. The increase in turnover is often the prelude to the main shipment. Mastering these handicap information can crack the trading intention of the main force in advance. The main force makes use of the inertia thinking of "quantity increases and price increases", and constantly takes a big beating when pulling up, constantly releasing a large volume and creating a strong buying force to attract the entry of off-site follow-up orders and achieve the purpose of taking the opportunity to ship.
With the help of favorable turnover, the purpose is to ship. As soon as there is good news, retail investors often flock to buy, and the main force takes advantage of this weak shipment. Generally, when individual stocks perform well in the distribution of interim reports and annual reports, and when there are major positive news or themes, the main institutions can generally grasp the good news in advance and push up the stock price in advance. Once the profit is cashed, when people are optimistic about buying, they will often increase the volume of transactions, take the opportunity to reduce their positions or ship, and trick retail investors into being fooled.
With the help of negative interest, the purpose is to collect chips. In this case, most of them will appear when the stock market has been falling continuously. Once there is bad news, the main force will often take the effect of amplifying the bad news, suppress the stock price with a big hand, deliberately create a panic decline, or kill the stock sharply to trick the retail investors with unstable mentality into selling stocks, so as to achieve the purpose of collecting chips quickly. This practice will also be adopted when washing dishes after the main position is opened.
The increase in volume against the market is aimed at attracting more. Some stocks themselves fell in sync with the broader market, or fell against the market, building a platform to sort out. One day, when the general trend declined and all stocks turned green, this stock went red against the trend and rose in volume, which caused considerable concern. At this time, many investors will think that this stock is rising against the trend, and this stock must have potential good news or a lot of new funds. So I boldly followed up. However, I didn't expect that this short-lived market only lasted for a day or two, and then it accelerated its decline, causing many people to follow up on the day of the heavy volume attack.
Shrinking and secretly shipping, the purpose is to paralyze the retail investors who are quilt cover. The shrinkage is not deep, and the shrinking volume means that the selling pressure is weakened, which belongs to the normal volume-price relationship. However, many major stock institutions with huge cumulative gains will use investors' inertia thinking to slow down the shipment by shrinking, so that investors who are stuck in a high position will have the paralyzed thought that the shrinkage will not fall deeply, lose their vigilance, miss the best time to stop the loss in time, and fall into a deep trap step by step.
After the transfer of the high delivery right, the right to fill in the right attracts more, with the aim of boosting the shipment. Before the high delivery, the main force will generally grasp the relevant information in advance. If the stock price is raised before the high transfer, the general shareholders are unwilling to rely on it, which is obviously not cost-effective. Therefore, the main force hoarded goods before ex-rights, and the stock price immediately became cheaper after ex-rights transfer. At this time, investors will follow up a lot. In order to take advantage of the rights-filling market and retail investors like to chase after the rise, after the ex-rights, they began to raise the stock price substantially, causing the illusion of buying a lot, so they took the opportunity to make a big shipment. Therefore, ex-dividend shares must be reinstated. Let the stock price fluctuation keep this continuity and avoid falling into the trap.
In addition, there are: the rebound trap of the bottom needle, the lure trap of the false positive line, the average trap, the K-line combination trap and so on. Every parameter may set a trap for you.
I hope I can help you.