Judging Dealer'S Intentions According To The Location Of Stock Price

Volume is an important indicator of technical analysis, though

1, volume increases, indicating increased buyer demand, positive turnover and bullish stock prices.

2, volume increases, showing hot money into the stock market, trading activity is naturally active, the market will rise.

The increase in volume indicates that the circulation of shares is smooth, the stock market is booming, and the share price is bound to soar.

Trading volume is increasing, speculative atmosphere is strong, market base is not stable, and stock prices are likely to slide at any time.

3, the volume of inflation is too high, the stock price naturally follows the sharp rise, the main market and large shipments are quite easy, small investors can not judge the real intention of the main force, the possibility of continuing to pull up or die is very great.

When volume decreases, float.

Dynamic chips will inevitably increase, selling pressure will surface immediately, share prices will also slide, investors' interest will be greatly reduced, and funds will soon be withdrawn from the stock market, so that they will not be able to recover from the passive hold up.

The increase in volume is a positive phenomenon of stock market prosperity and stock price rising. But relative high profits must be accompanied by high risk. Investors should not forget the risk when they gain profits.

In the technical analysis, the warning effect of trading volume is also obvious. The most obvious case is that the stock price is soaring and the volume is increasing. The total volume and the stock index keep hitting a new high. But if the volume increases, the stock price and the stock price index have no obvious rise, which means that the stock price has reached the peak and the possibility of the return is huge. It is time for investors to be vigilant.

Stocks that have risen for a long time suddenly go higher and lower, and investors should pay special attention when closing at a low price.

This indicates that the stock price is already showing signs of return. When it is clouded, it is better to avoid it for the time being. As the volume of trading is shrinking, share prices have gradually pushed forward in the past, indicating that the stock has gradually approached the high price and investors can consider making profits.

In short, the signal of a special stock market must be hidden behind another new beginning. Instead of taking the wind and rain, it is better to take a break.