When using this indicator, it should be observed according to the comprehensive situation of the cooperation between volume and K-line trend, and cannot be used as a forecasting indicator alone.
Volume is the essential factor of market changes.
The ups and downs of the market and the changes in stock prices are closely related to the changes in quantity and energy. In a bull market, shrinkage sometimes helps the market to accumulate new upward momentum. Volume is also a kind of energy, and excessive consumption will inevitably lead to energy failure.
Volume reflects the direction of capital movement and is also the essential factor of market changes.
The movement of funds in the stock market is the basis of market changes. Any policy, news and the fundamentals of listed companies will be reflected in the volume of transactions. The ups and downs of the market and the changes in stock prices are closely related to the changes in quantity and energy. Therefore, it can be said that the quantitative and energy analysis of the stock market is the fundamental method to accurately judge the market.
Four forms of trading volume
The quantitative and energy analysis of the stock market needs to grasp four factors, namely: volume, shrinkage, daily turnover and land volume.
The amount of land generally appears in the early stage of the bull market, which means that the market will soon end to adjust the market and turn to the market. It is worth noting that the analysis of land volume can not only look at the volume of transactions, but also comprehensively analyze market trends, technical analysis and market hotspots.
Heavy volume is the basis of supporting a strong market. Under normal circumstances, the volume during the rising process and the shrinkage during the temporary adjustment on the way up are good volume conditions, which can promote the continuous rise of the stock index. However, there are exceptions. For example, some stocks that are deeply involved in the market are generally heavy at the beginning of the market, but they have been shrinking in the process of rising after the stock. Most of these stocks will have a long-term strong market.
Shrinkage. In a bull market, investors mostly like to increase the volume of transactions, but they don't want the market to shrink. In fact, shrinkage sometimes helps the market to accumulate new upward momentum. Because trading volume is also a kind of energy, excessive consumption will inevitably lead to energy depletion, thus ending the market ahead of schedule. And the decrease in trading volume does not mean that the stock market will definitely fall. In a strong market, when the incremental funds are fully opened, the circulation chips of listed companies in hot markets will be locked in a large area. At this time, even if the trading volume is reduced, it will not affect the development of the market.
Days. In a bull market, trading volume is a good thing, but it must be moderately enlarged. If the turnover can suddenly increase rapidly, investors need to clear their positions immediately no matter what stage the market is in. Because the trading volume in the bull market is too large, it shows that the investment public is optimistic about the market outlook and buys in succession, but it is easy to make the market peak quickly.
Suggestions on the coordination of volume and price in stock market
The relationship between volume and price is an important part of volume analysis, and learning to observe the changes of volume and price is an important skill and basic skill. There are eight basic forms of the relationship between quantity and price, mainly including:
This is a signal that the trend is improving.
The rise in volume and price is a signal suitable for buying.
Quantity parity has risen. This is the right time to keep buying.
Price reduction is a signal to continue holding.
This is a warning sign of price reduction.
The decline in trading volume is a selling signal.
The fall in volume and price is the time to continue selling.
The increase in quantity and decrease in price is a signal suitable for waiting and seeing.
From the perspective of the relationship between quantity and price, we should pay attention to the following points:
1. From the price point of view, when the stock price is at a relatively low level or a large bottom area, there is a large room for growth; Or although the stock price is in a strong upward trend, there is no continuous stock portfolio, indicating that the main funds are still in the stage of raising funds.
2. From the analysis of the change of quantity and energy, the volume of transactions for several consecutive days shows the characteristics of continuous moderate amplification, and when the stock price is currently in a breakthrough state, the volume of transactions shows a trend of rapid amplification.
For example, G Huaqiang (000062 quotes, information, consultation, more), a local science and technology concept reorganization stock in Shenzhen, fell back with the broader market in the second half of 2005. After the pattern was oversold, a large arc-shaped bottom pattern was built at the low position, and it continued to be moderately heavy in 2006. Since then, a strong upward trend has emerged.
In the short-term weak market environment, investors should pay attention to short-term market risks in stock selection. From the price point of view, we can pay attention to the following points: first, stocks with relatively low stock prices or large bottom areas have large room for growth; Second, there are relatively many stock opportunities that are in a short-term form and have not formed a breakthrough; Third, although the stock price is in a strong upward trend, there is no stock in the form of continuous income line combination, indicating that the main funds are still in the stage of raising funds.
From the change of quantity and energy, we can refer to the following aspects: first, one-day trading is both active and exaggerated; Second, continuous multi-day trading is characterized by continuous moderate amplification; Third, the stock price is currently in a recent intensive transaction area, showing the characteristics of repeated digestion and selling.
The application of trading volume in warrant and futures market is basically the same as that in stock market, but there are differences. Warrants mainly focus on the volume analysis on the time-sharing chart, and the futures market can not ignore the short analysis. Short position is the accumulation of all open positions in futures or options contracts, and it is a sign of the activity and liquidity of futures market. When the price reaches or approaches a specific price, it will affect the buying and selling ability of investors.