Volume is an important skill to watch the market, and many investors are not clear about the changing law of volume. Only by combining K-line analysis with volume analysis can we truly understand the language of the market and the mystery of stock price changes. The following is how to explain the volume of transactions sorted by Bian Xiao, hoping to help everyone.
How to explain the volume?
When the demand exceeds the supply, the crowd is surging, and everyone wants to buy it, so the transaction volume will naturally increase; On the contrary, the supply exceeds the demand, the market is deserted, the buying gas is scarce, and the trading volume will inevitably shrink. Digitizing the crowd is the transaction volume. The turnover in a broad sense includes the number of shares traded, the turnover amount and the turnover rate; In a narrow sense, it is also the most commonly used one, which only refers to the number of stocks traded.
Volume refers to the total number of shares traded on that day (1 lot = 100 shares). VOL display 1M is1k =1000 (103),1m =100000 (10 6),/kloc-internationally.
It should be noted that people usually refer to the turnover of the market as the transaction amount. Explain the activity of the market and the scale of funds. The transaction volume and transaction amount are expressed by the following formula: transaction volume × average transaction price = transaction amount (transaction volume).
Volume change
1, the price increase was flat, which is a positive signal: after the stock price continued to fall, the stock price stabilized due to the increase in trading volume. At this time, the positive column line of general trading volume is obviously more than the negative column, and the difference between convex and concave is obvious, indicating that the bottom is accumulating upward momentum, and there is a signal that the main force is changing from the middle line to the positive line, so you can buy shares moderately. Sometimes in the middle of the upward trend, there will be a "price rise", which means that the upward trend of the stock price is temporarily frustrated. As long as the upward trend is not broken, there will still be a market after the rectification.
2. The volume and price are rising, and the buying signal: the trading volume continues to enlarge, and the stock price trend also turns upward, which is the best buying signal in the short and medium term. "Increase in quantity and increase in price" is the most common active attack mode of bulls, so they should actively enter the market to buy and dance with Zhuang.
3. Parity of trading volume rises, and continuous buying: the trading volume remains at the same level, and the stock price continues to rise, so it can participate in the period in due course.
4. Continue to hold when the trading volume decreases: the trading volume decreases and the stock price continues to rise, which is suitable for continuing to hold shares. Even if the locking phenomenon is good, it can only be the short-term participation of small funds, because the stock price has already increased considerably, which is close to the end of the increase. Sometimes there will be a situation of "price reduction and price increase" at the beginning of the rise, which may be a flash in the pan, but there is still room for upside after the replenishment.
5, the volume and price are flat, warning signal: the transaction volume is obviously reduced, and the stock price does not rise after a long-term sharp rise, which is an early warning signal for shipment. At this stage, if the sky-high price suddenly pulls out the big Yang Yin line, no matter whether there is good news or bad news, we must make a decisive layout.
6, the volume and price fell, selling signal: the trading volume continued to decrease, and the stock price trend began to decline, which is a selling signal. This is an infinite decline, and the bottom is far away. The so-called long-term decline will not stop until the bulls completely lose confidence and lighten up their positions, and the decline will stop when there is a large volume (see the eighth stage). Therefore, in operation, as long as the trend reverses, they will stop the loss in time.
7. Trading volume fell at parity and continued to sell: the trading volume stopped decreasing and the stock price fell rapidly. At this stage, we should continue to adhere to the policy of selling as soon as possible, and don't buy it carefully.
8. When the trading volume increases and the price drops, give up selling and wait and see: after the stock price falls sharply for a long time, the trading volume increases. Even if the stock price is still falling, we should be cautious about the "killing down" of extreme panic, so the operating principle at this stage is to give up selling short positions and wait and see. The increase in low-priced areas indicates that there are funds to take over, indicating that it is expected to form a bottom or rebound in the later period, which is suitable for attention. Sometimes, if there is a "falling volume and price" at the beginning of the trend reversal, then it is even more necessary to make a decisive clearance.
How to check the turnover?
After understanding the related concepts of volume, let's take a look at volume. In the daily K-line chart, enter the volume directly with the keyboard, and the system will start the keyboard wizard, and then press enter to see the volume histogram. Among them, the solid bar chart represents the negative line of the stock price of the day, and the hollow bar chart represents the positive line of the stock price of the day. The length of the columnar entity represents the transaction volume, and the longer the columnar entity, the greater the transaction volume. On the contrary, the smaller the quantity.