What do you think of futures trading volume?
The significance of futures liquidation: the futures trading volume is the number of contracts that have been liquidated, which is calculated bilaterally (buying and selling), so it must be even. The trading volume information of futures is generally reflected in the market chart.
So how to analyze futures prices with volume? In the analysis of various assets, the method of analyzing transaction volume is consistent, and the market is judged by the relationship between volume and price. There are two kinds of relationship between quantity and price, one is the same direction of quantity and price, and the other is the deviation of quantity and price:
1 same direction of volume and price: that is, the stock price changes in the same direction as the volume. The stock price rises, and the trading volume also rises, which is the performance that the market continues to be optimistic; When the stock price falls, the trading volume decreases, indicating that the seller is optimistic about the market outlook and unwilling to sell the position, and there is still great hope for a turnaround rebound.
2. Deviation between volume and price: that is, the stock price and volume show opposite trends. The stock price rises while the trading volume decreases or remains flat, indicating that the upward trend of the stock price cannot be supported by the trading volume, and this upward trend is difficult to maintain; The decline in stock price but the increase in trading volume is a precursor to the downturn in the market outlook, indicating that investors are afraid of catastrophe and sell the market.
The above is the relevant content of volume and price analysis. In practice, we can't just focus on one indicator. In addition to volume and price analysis, investors had better combine other technical indicators to verify.