What is volume and what it means
Volume Refers to the number of lots, transaction amount, and turnover rate. The transaction volume in the market comment generally refers to the transaction amount. Turnover and turnover are the main concerns of volume analysis.
In technical analysis, the relationship between research volume and price occupies an extremely important position. Trading volume is the driving force behind the stock price. Effective changes in the market must be complemented by trading volume. Trading volume is an indicator that annoys you. The size of trading volume reflects the degree to which the stock is concerned by investors.
The basic meaning of volume:
1. The trading volume represents the degree of divergence between the views of the long and short sides. The shrinking volume means that the current long and short views tend to be the same, and the heavy volume means that the two sides have a relatively large divergence of views.
2. Trading volume, which indicates the willingness of funds to participate, and the depth of participation, which indicates the activity of individual stocks or the broader market. The indicator to measure the trading volume horizontally is the turnover rate.
3. Volume and price have two relationships of divergence and synchronization. Excessive volume occurs at the inflection point of trend turning, and shrinking volume occurs in an obvious upward or downward trend.
The role of trading volume:
1. The first role of trading volume is to make the stock price A rise can also cause a share price to fall.
In an uptrend, when the trading volume increases, the stock price rises, and when the trading volume decreases, the stock price falls. In a falling market, when the stock price falls, the trading volume increases, which means that there are more suppliers, and most of them are short-term speculators who are rushing for a rebound, and will not be held for a long time.
2. The second function of trading volume is to make unpopular stocks become popular, and popular stocks become cold.
The hot and cold of the stock is formed by the increase or decrease of the trading volume. When the trading volume increases, the stock is hot, and when the trading volume decreases, the stock is cold.
3. The third function of trading volume is to determine the speed at which the stock price rises and falls.
When the trading volume shrinks, the stock price lacks the driving force and it is difficult to rise. Where there is volume, there is stock price. The enlargement and reduction of the trading volume seriously affects the rise and fall of the stock price.
The shape of the volume when it is pulled out
The transaction must be part of the Some people are bearish on the market outlook, while others are bullish on the market outlook, causing huge differences. There are buys and sells, and everyone takes what they need, and then the deal is made. We divide the form of the volume during the pull-up into the following four forms:
1. The volume of preparation. It usually occurs at the turning point when the market trend turns, and before the main force is ready to pull up sharply, the trading volume is often done very beautifully. In the past few days or weeks, the trading volume has slowly increased, and the price has slowly pushed up. On the K-line chart, it is piled up into a pile that surpasses all the previous piles. The more beautiful the pile is, the more likely it will produce a big market.
2. The amount of dishwashing. After the amount of preparation, the amount is quickly reduced, the main force is rarely sold, and the uninformed retail investors are selling,The transaction is getting thinner and lighter, so the volume is shrinking sharply.
3. Shock volume. This situation is generally after the dishwashing, under the premise that there is no sudden positive or the overall situation is basically stable, the main force has pulled up, but the volume has not broken through the previous high point. Then the stock price staggered and fluctuated up and down. The main force was to further shake out the unstable holders before the main rise.
4. Attack volume. When the main force starts to lift the main uptrend, the trading volume will be doubled compared to the previous day, or continuously enlarged until it breaks through the high point of the previous shock volume, and a wave of main uptrend will come oncoming.
How can it help us to analyze the changes in trading volume?
1. Analyze the attractiveness of a stock to the market. The larger the volume, the more attractive the description, and the more likely the price volatility will be.
2. Analyze the pressure and support price area of a stock: in a price area, if the volume is large, it means that this price area has great pressure or support, The trend will pause or reverse here.
3. Observe the direction in which the price of the stock walks out of the densely traded area: when the price moves out of the densely traded area, it means that the long-short divergence has been temporarily unified. Then the price tends to go up; if it goes down, it tends to go down.
4. Observe the relative value of the stock trading volume in different price areas to judge the continuity of the trend. As the price of the stock rises, the trading volume should decrease in steps. Generally speaking, the higher the price of the stock, the less people who are interested or dare to participate. This, from a turnover point of view, will be more concise and to the point.
Volume to judge the market trend:
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1. With the rising of the stock market, the trading volume shows an ever-increasing state, indicating that the buying is active, and the active buyer's market drives the stock index or stock price further rise, forming an upward trend.
2. The trading volume shrinks in the downtrend. In this case, it generally means that in the process of decline, the overall sentiment of the seller is not high, and along with the decline of the stock price, they are more reluctant to throw away their chips.
What does a small volume of stock mean?
1. The small volume and the price increase, indicating that market participants are starting to wait and see on the rallies and are unwilling to chase high and buy (except for the limit-up situation).
2. The volume is small and the price falls. First, it appears at a high price, indicating that market participants have a strong wait-and-see atmosphere; second, it appears at the end of the band decline, indicating that the bears are starting to dry up and the market It is possible to stop falling and rebound.
3. The quantity is small and the price is average, which is the result of taking a wait-and-see approach. It appears at the high point of the band, indicating that market participants are beginning to be cautious, and the market may turn up and down; Bands appear in the middle, which is normal, and the market outlook will continue the original ups and downs.
What does high stock turnover indicate?
1. The turnover before the daily limit is huge, indicating that the buying is very active, and the main dealer is determined to pull the table. If the huge transaction occurs after the daily limit, it shows that the main force is right Reversing the chips and tricking retail investors into buying, the daily limit is often unable to continue to be sealed. You should pay attention to the possibility of the dealer's shipment, and it is better to be vigilant.
2. During the daily limit, if the trading volume is smaller, it indicates that there are fewer selling orders, the selling pressure is small, and the possibility of continuing the daily limit is greater. For the daily limit with huge trading volume, it should be observed whether the transaction occurs before the daily limit or after the daily limit is closed.
3, aboveAmplifying the rise means that there is potential, but also to prevent Zhuang from escaping; the enlargement of falling means that the decline is not strong, and it is also necessary to prevent Master Zhuang from opening a position.
4. If it is a high-level and heavy-volume fall, That means that the main distribution is more likely to be shipped; if it is a low-level heavy volume, and it is a continuous or huge volume, the decline is expected to slow down, and it may change and rebound in the short term.
Volume Trading Skills
First: Accumulate down, this This kind of accumulation method is very fierce, but there must be cooperation with the broader market. The daily trading volume was low when opening a position with low suction, and there was no trace of the main force on the disk. In the trend, the stock price fell infinitely or fell rapidly or even fell to the daily limit, which was obviously the main force.
Second: Pull up the accumulation, this method is more aggressive, but more For the short-term main force. Accumulation to a certain proportion of the circulating market, the main force is to achieve the purpose of controlling the market. During the process of accumulation, there will be continuous testing. Usually, it will increase in heavy volume to attract market follower to participate and enhance the activity of the stock. It is essential to release a huge amount of main shipments, and the positive news frequently comes out of the market's activity to follow suit. It is essential to release a huge amount of main shipments, and good news is frequent and active in the market.
Third, sideways accumulation, this method takes a long time, and those who hold shares must be patient. When opening a position sideways, the main force is to maintain the stock price in the intraday. On the market, there are usually a large single pressure plate and a large single pallet below. , it means that the market sells less orders and more stocks are locked by the main force. At this time, we should observe more carefully.
Volume Stock Picking Tips
1, inverted pattern, wait for the big rise
When the broader market and individual stocks continue to decline, and then there are signs of stabilization, the daily K line forms a kind of Similar to the head-and-shoulders bottom, the right shoulder has broken through the neckline and is gradually increasing the volume. At this time, it is necessary to resolutely buy a large amount of money
2, Flowering on the board, dark horse tactics
Flowering on the board It means that a single stock has a continuous down limit, and the last down limit releases a huge amount to open the down limit, and a large amount of funds begin to take over, and there will be a good chance of rebound in the short term, so the appearance of this pattern is a good buying position.
1) The previous drop limit is an infinite drop limit;
2) The last drop limit is opened, and the last trading day is not closed;
3) Except for major negative ones.
3. The daily limit of low-level heavy volume
There is always a reason for the heavy volume. Some major players in the high-priced area tend to increase their volume, often placing big sell orders at some price levels, and then eating them, showing their courage to follow the trend. If they place big buy orders in certain positions, it shows their determination to protect the market, but these are all illusions. , the center of gravity can be identified by the real rise and fall, and the weak and low positions have a heavy volume of knocks, indicating that the institution or the main force will pull up a wave of market prices, and you can choose an opportunity to follow up.
4. Bulk buying method
The so-called lot is that the stock has released the largest trading volume recently, we call it a lot! The method of buying a lot of money is that the trading volume of the day suddenly released the largest trading volume in recent times, and the stock price of the next two trading days was higher than that of the day of the violent volume.
1. A large number of K-lines can be either positive or negative.< p data-pid="rJMbTH8-"> 2. If the K line is a doji line, the highest price is used as the standard
3. This large amount is greater than the trading volume in the past 20 days
As shown in the picture above, this stock was on November 4, 2015. After the stock was shaken and fluctuated, the stock's price on that day was The trading volume suddenly exploded and hit a new high, and the stock price also hit a new high in Changyang, which is an excellent buying opportunity. After that, the stock also rose all the way, with an amazing increase!
5. The massive selling method
is the opposite of the buying method. The method of selling a lot of violence is that the trading volume of the day suddenly released the largest trading volume in recent days, and the stock price of the next two trading days was lower than that of the day of the violent volume.
1. The trend of stock price is not necessarily The upward trend may be a downward trend.
2. If the number of days is longer, the longer the falling time will be after falling below the bottom of the entity.
3. Participate in the call auction to sell before the next day's market, which can guarantee to sell stocks in time
This stock was in 2015 On November 13, 2008, after a long-term surge, the stock's trading volume on the day suddenly surged, and the stock price on the next two trading days was lower than the day of the surge. At this time, we should sell and flee decisively. , the stock is also diving all the way, down horribly.