1, the quantity is the recognition of the price; The relationship between quantity and price is the most essential and basic relationship in the market. You can only sell it if you buy it. In the process of price change, the wishes of both parties to the transaction are determined by quantity and energy. No matter what index is used to judge the trend, the recognition of market price should be confirmed by the relationship between price and energy. Therefore, the analysis of quantity and price has also become a very basic and important part. If the deviation can analyze the pure price trend (that is, K-line pattern), it is often easy to be deceived by the market. During the continuous bidding period (real trading time), quantity plays a key role in the analysis and judgment of price trend in the process of trading price change.
2. The stock price rises suddenly, and the trading volume is released greatly: it is different from the performance of the stock price from the top and bottom stage. Without any warning, the stock price suddenly rose and the volume of transactions increased sharply. Explain that the fundamentals of individual stocks may change greatly and there will be a rapid increase in positions; This situation often appears in the self-help market of the main quilt in the early stage, which shows that the stock price rises rapidly and then falls rapidly. Therefore, it should be emphasized that the stock price retracement cannot fall below the increase, and the trading volume has shrunk dramatically. However, the sharp decline in trading volume shows that the pressure of calling orders and closing positions has been basically released, and the chip locking situation is good. The dishwashing process is coming to an end and the stock price will resume its upward trend.
3. With the slow increase of trading volume, the stock price rises gradually and suddenly becomes a vertical upward trend. The number of transactions also increased sharply, and the stock price soared. With this trend, the number of transactions has decreased sharply and the stock price has fallen sharply. This shows that the upward trend has ended, the upward trend is weak, and the trend shows signs of reversal. The degree or extent of the reversal will depend on the extent of the previous wave of gains and the extent of the expansion of trading volume.
4. The stock price has been falling for a long time, resulting in panic selling. With the continuous expansion of the transaction, the stock price fell sharply. After this panic selling, the stock price is expected to rise, and the lowest price set by panic selling will not be broken in a short time. Therefore, panic selling often (but not necessarily) marks the end of the short selling market.