Stock Volume

Stock volume energy refers to the combination of trading volume and capital momentum in the stock market. It is one of the important indicators that reflects market supply and demand and price trends. Changes in a stock's volume energy often represent changes in market sentiment for a stock's trading. For example, when volume energy suddenly releases a huge amount, it indicates that market funds are already very active and the market outlook is promising; conversely, when volume energy continues to shrink, it indicates that the market Funds have been extremely deserted, and the market outlook is gloomy. Therefore, learning to observe and analyze stock volume is very useful for investors to grasp market trends and stock selection opportunities.

So, how can we look at stock volume? Generally speaking, we can observe and analyze stock volume performance from the following four aspects:

Volume-price relationship. The volume-price relationship refers to the interaction and impact between trading volume and stock price. It is one of the basic methods for judging stock trends. Generally speaking, the expansion and contraction of trading volume is one of the basis for investors to judge the trend of the market. Increased volume is a sign. In the price rising stage, volume is the driving force that pushes the stock price to rise further. In the price falling stage, volume is the driving force that suppresses the stock price and then falls again. Under normal circumstances, a sharp rise or fall in the market will always be matched by trading volume, that is, an increase in price will increase volume or a decrease in price will increase volume. Regardless of whether it is long or short, the release of energy has a process from accumulation to depletion, and its symbol is the size of the rise and fall. When the energy of multiple parties is released to the extreme, it will be "the sky is the limit for the price", and the market will turn downward. When the energy of the short side is exhausted, it will be "the quantity of land reflects the price of land", and the market will also show an upward trend of reversal.

Energy form. Volume energy patterns refer to the different graphics and patterns formed by trading volume on the Candlestick chart chart. It is one of the important signals that reflects the contrast of market forces and trend turning. Generally speaking, we can analyze stock trends from the following common volume and energy forms:

Shrinkage: Shrinkage means that market transactions are extremely light, and most people agree with the market outlook. There are two situations: first, market participants are very optimistic about the market outlook, which results in only people selling, but no one buying, so the volume shrinks sharply; second, market participants are very optimistic about the market outlook, and only people are buying, but no one is buying. Sold, so the volume shrank sharply again. Shrinkage generally occurs in the middle of the trend. Everyone agrees with the market outlook. When a decline occurs, the volume shrinks. When encountering this situation, one should resolutely exit the market and wait until the volume shrinks to a certain extent before buying again when the volume begins to rise. Similarly, when the price rises and shrinks, when encountering this situation, you should buy decisively and wait for profits. When the price rise is weak, sell when there is a huge amount to release.

Increased volume: Increased volume generally occurs at the turning point of the market trend. Different forces in the market gradually increase their opinions on the market outlook. Some people are resolutely bearish on the market outlook, while others are resolutely optimistic about the market outlook. Compared with shrinking, increasing the volume has a lot of false elements. It is very simple for the main force to control the market and use the chips in their hands to release huge amounts of money. As long as the main force's intentions are thoroughly analyzed, the plan can be used.

Stacking volume: When the main force wants to pull up the price, it often makes the trading volume very beautiful. Over the past few days or weeks, trading volume has slowly increased and prices have slowly pushed higher. The trading volume forms a mound-like shape on the Candlestick chart chart. The more beautiful the pile, the more likely it is that a big market will occur. On the contrary, high piles indicate that the main force is shipping goods in large quantities.

Irregular volume expansion and contraction: This situation is generally caused by the monster village under the premise that there is no sudden good news or the overall situation is basically stable. It suddenly releases a historically huge volume when the weather is calm, and then there is no follow-up. Generally, it is a weak player. The dealer is attracting market attention in order to ship.

The eighth order law of quantity and energy. The eight-order law of volume and energy refers to the eight regular relationships between trading volume and stock prices at different stages. It is one of the important basis for judging the timing of stock buying and selling. details as follows:

The volume is increasing and the price is flat, a positive signal: it appears in the low area of continuous decline, indicating that the bottom is accumulating upward momentum, and you can hold an appropriate amount of stocks to wait for the increase.

Increase in volume and price, buy signal: This is the most common bull attack mode and the best buy signal in the short and mid-term.

If the volume rises and the price rises, continue to buy: the trading volume remains at the same level and the stock price continues to rise. You can participate in the right amount at the right time during the period.

Volume decreases and price increases: continue to hold: It is suitable to continue to hold shares. Sometimes there will be "volume decreases and prices increase" in the early stages of a rise, which may be short-lived, but there is still room for upside after replenishing the volume.

Volume decreases and price levels, warning signal: trading volume decreases significantly, and after a long period of sharp rise, the stock price consolidates sideways and no longer rises. This is a warning signal for shipments. At this stage, if there is a sudden huge amount of daylight and a big positive or negative line is pulled out, regardless of whether there is good or bad news, we should distribute decisively.

The volume decreases and the price falls, which is a sell signal: The trading volume continues to decrease and the stock price trend begins to turn downward, which is a sell signal. This is an immeasurable decline, and the bottom is far away.

If the volume falls and the price falls, continue to sell: At this stage, we should continue to adhere to the policy of selling as early as possible.