1. Volume is not only a stock market term, but also used in real estate, futures and other fields. Generally refers to the number of transactions within a certain period of time. The attributes of various commodities are different in different marketing unit. In the stock market, "hand" is often used as the unit of measurement of trading volume, which is calculated by 5-minute line, daily line, weekly line and monthly line respectively. Volume is generally used to evaluate the activity of a stock. The higher the trading volume, the more funds and people (mainly funds) pay attention to the stock. The change of stock trading volume is often used to evaluate the reversal of stock trend and future trend.
Second, because the size of each stock in the stock market is different, taking out the volume data alone can't explain anything. For example, the circulation of a large-cap stock is 65.438 billion shares with a turnover of 3 million shares, and the circulation of another small-cap stock is 65.438 billion shares with a turnover of 3 million shares, so it must be that small-cap stocks are more active. A term involved here is called turnover rate, which is more relative to turnover. However, according to the column chart of turnover, we can look at the comparison of the same period in the previous period, and the double change or increase of turnover can also explain some problems. In the upward trend, doubling the turnover means that a considerable number of people are ready to cash out. At this time, we should be alert to risks, and the stock turnover in the consolidation stage suddenly doubled, indicating that the main force has the intention of pulling up.
Generally speaking, volume is auxiliary data. In the process of K-line or EMA giving a certain signal, without the cooperation of trading volume, it often means that it is easier to cheat the line. Once there is a volume, the credibility of various signals will increase exponentially, which is also the reason why investors can see whether there is a quantity to match when discussing the stock price rise. Infinite price is empty, priceless value is waiting and seeing.
What do the red and green bars stand for? The volume indicator chart is at the bottom of the stock K-line chart, which is represented by red and green columns. A single volume column chart can't explain too many problems, but the combined volume column chart can be used for reference.
1 red bar indicates the rising intensity of the stock: the longer the red bar indicates the higher the rising intensity, which is a good opportunity for short-term customers to enter the market in the process of sudden doubling of trading volume.
2. The green bar indicates the strength of the stock decline: the longer green bar is a wait-and-see signal, and it is not appropriate to be impulsive at this time regardless of long-term and short-term operations.
3. When the length of the red bar line is enlarged, it shows that the rising power of the stock becomes stronger. When it is gradually shortened, it shows that the power of stock rising is weakening. Decide whether to hold shares or sell them according to the change of red column of trading volume.
4. When the length of the green bar line is enlarged, it shows that the downward momentum of the stock is getting stronger and stronger. When it is gradually shortened, it shows that the power of stock decline is weakening.
5. The height of red and green bars indicates the trading volume of stocks.
6. The higher the bar height, the greater the trading volume of stocks; The shorter the height, the smaller the stock turnover.
Volume refers to the number of transactions of a stock in a unit time. In the daily K-line chart of stocks, the trading volume is the sum of the internal and external markets of the day. Volume is a manifestation of stock liquidity. When the liquidity of stocks is high, the turnover is high. When the stock liquidity is not strong, the turnover is small. It should be noted here that there is no necessarily positive correlation between trading volume and stock price. When stocks are in a hot market, stocks are in short supply. At this time, the trading volume is small, but the stock price will continue to rise. The daily limit stock is a typical example.