The types of volume-price relationship can be divided into two categories. One is the ordinary type, that is, low quantity and low price, flat price increase, price increase and price decrease, price increase and price decrease. The other is a special type, that is, land price, sky-high price, infinite rising sky, infinite falling shade, heavy volume at the bottom and upside down at the top.
1, small quantity and low price
Low volume and low price mainly refers to a phenomenon of volume-price coordination in which the trading volume of individual stocks (or large markets) is very scarce and the stock price of individual stocks is also very low. Low volume and low price generally only appear in the stage of long-term bottom consolidation of stocks.
When the stock price falls all the way from the high level, with the obvious reduction of trading volume, the stock price stops falling and stabilizes near a certain point, and it is sideways for a long time at the low level. After several repeated bottoming, the lowest point of the stock price has become more and more clear. At the same time, due to the recent volume can gradually shrink to the lowest value, the trend of the stock has appeared the phenomenon of low volume and low price.
The appearance of low quantity and low price only shows that the possibility of the formation of the staged bottom of the stock price is greatly enhanced, and it cannot be used as the basis for buying stocks. Investors should also study whether the fundamentals of stocks are good and have investment value before making investment decisions.
2. Price increase and price leveling
Price rise and price leveling mainly refer to the phenomenon that the trading volume of individual stocks (or market) increases, while the stock price of individual stocks fluctuates almost at a certain price level. Price rise and price leveling may occur at all stages of the rising market or at all stages of the falling market. At the same time, it can be used as a signal to sell stocks and also as a signal to buy stocks. The main feature of distinguishing buying and selling signals is to judge whether the "price" in the "price increase parity" is high or low.
If the stock price is in a relatively high price range after a relatively large increase for a period of time, the trading volume is still increasing, but the stock price fails to continue to rise, showing a phenomenon of high price increase. The stagflation trend of this heavy volume stock price shows that the main force of the market may quietly ship the goods while maintaining the stock price unchanged. Therefore, the price rise and price leveling when the stock price is high are the signs of top reversal. Once the stock price turns around and runs down, it shows that the top of the stock price has been formed, and investors should pay attention to the high risk of the stock price.