Trading volume refers to the number of transactions made in a certain unit of a stock during a certain period of time, based on its intraday stock price; When the supply of chips is less than the demand, the probability of stock price increase is high, and the effective increase in trading volume can support the stock price to rise; When the supply of chips exceeds the demand, there is a high probability of stock price decline, low trading volume is better, there is a high probability of market washing, and there is still room for upward movement in the later stage.     What does the short trading volume of stocks indicate?

A low stock trading volume indicates a sluggish stock market, which is in a state of being a niche stock. Most of the trading is done by individual investors, and it is only when major funds have not moved their positions that the trading volume is low!     How to check the trading volume? How to determine whether a stock is washing up, selling, or in the fundraising stage based on its trading volume? Trading volume varies depending on the trend of the stock, and specific situations need to be analyzed.     Upward trend:The decrease and decrease in volume under this trend indicate the reluctance of large funds to sell, and there is a driving force to continue reaching new highs. However, releasing a sky high volume is not a good phenomenon, especially when there is a certain increase, it often represents the beginning of a correction, indicating that there is a large amount of funds selling at this position, and at least a short-term correction is needed.     Downward trend:Under this trend, increasing volume in the early stages of a downtrend is not a good thing. A decrease in volume indicates that funds are not optimistic about stocks and is generally the beginning of opening up downward space; Both increasing and decreasing volume after a period of decline are good things, except for the limit up and limit down. At this point, increasing the volume indicates that there are funds optimistic and entering the market; Shrinking volume indicates that selling is becoming less and less, and there is no way to fall.     Turbulent trend:Under this trend, most of the trading volume is invalid, depending on the trading volume over a period of time. Low volatility and increased volume are generally indicative of building positions; High volatility and increased volume are generally indicative of shipment performance. When breaking through the oscillation trend, the success rate of carrying volume is very high; The success rate of non quantitative approaches is very low. At the lower edge of the oscillation zone, increasing volume and closing positive generally indicates that the correction is in place and an upward attack has begun; A large volume closing with a bearish trend and falling below the lower edge generally indicates the beginning of another decline. In the process of actual trading operations, we often find that some stocks have low trading volume. So, what reference significance does low trading volume have for our actual trading operations? Next, let's talk about how to use trading volume methods.     Shrinking volume and falling, pay attention to risks If a stock is in a downward trend and has previously experienced a pullback due to market speculation, we will develop a situation where the trading volume of the stock remains low during the decline. This low trading volume often represents risk, and the trading volume itself reflects the trading situation of the stock on that day. A low trading volume indicates a low trading volume on that day. If there is a continuous decline in volume, it indicates that the market participation of the stock is low, the capital participation is small, and the popularity is low. This proves that the stock has poor performance, and although the stock price is in the process of decline, it is still overvalued and has not fallen to the right level.     The washing stage during the upward trend If there are also times when the trading volume is low during the upward trend of stocks, then at this time, the low trading volume often represents a reduction in trading volume and market washing. What are the specific reasons? It's simple, because in the process of a large capital rally, the market maker will definitely increase the volume, but the stock price will not continue to rise. Therefore, there must be a washing stage during the rally. When a large capital rally increases the volume, washing only clears short-term customers and general retail investors. Therefore, large capital does not choose to sell, so naturally the trading volume is small. So, during the liquidation process, the trading volume gradually decreases until it reaches the lowest level in recent times, indicating that retail investors have also washed up almost, and there are no retail investors selling out, naturally resulting in a decrease in trading volume. The trading volume is small, and there are different opinions in several situations.     Firstly, there is a rapid decline. The rapid decline and low trading volume indicate that no one is taking orders and there is no volume decline, so it should be bearish. The infinite decline represents that everyone in the stock market has the same opinion on this stock, that it cannot be bought, and that everyone is short. At this moment, the bearish force is extremely strong, with many sellers and few buyers.     Secondly, there is a rapid increase. Rapid increase and low trading volume indicate that no one is buying and there is no volume increase, so it should be bullish. The unlimited rise represents that everyone in the stock market has the same opinion on this stock, that it cannot be bought, and that everyone is bullish. At this moment, the bullish power is extremely strong, with fewer people selling and more people buying.     Thirdly, there is an infinite bearish trend. Endless decline, rebound and resolute exit. An unlimited bearish trend usually occurs when a stock has already gone through a period of intense speculation and has seen a surge in volume at a high level, leading to the end of the main force's sales. However, since the stock has already gone through a period of intense speculation, there is generally no main force intervention in the short term. Stocks without the intervention of major players are constantly falling. We can never see the end of the decline.     Fourth: Reduce the amount of washing. Shrinking volume wash is the favorite type of trading among the main players, usually occurring in stocks that have been fluctuating in a certain region for a long time. Suddenly falling, reducing volume, and the magnitude of the decline is very large, usually falling below the 60 day medium-term moving average, or even the six-month line. Many people flee out of fear, cut their flesh and leave, and then the main force starts to rise, continuously rising.     Fifth: Decrease in quantity and increase in price. Shrinking volume and rising usually indicate that the stock price continues to reach new highs, but the trading volume does not reach new highs. The trading volume and the previous trading day's trading volume have significantly shrunk. At this time, it means that the main force is unwilling to sell, and due to the large increase, off exchange funds are unwilling to come in. Therefore, it continues to rise. At this time, it means that the main force has a very high degree of control over the market, and the long and short directions are consistent, which is to boost the stock. In this situation, it is important to actively participate and make a profit by buying.

It is worth noting that the continuous rise in stock prices is usually not something that a single market maker can accomplish alone. Firstly, it requires a large amount of funds, and secondly, the cost is too high. So, many stocks are driven up by a few hot money investors, which means there will be a relay situation during the rise. If there is a relay, there will be a turnover, and the trading volume will increase. However, if a stock continues to experience a continuous decrease in trading volume during the rise, the height of its rise will not be too high, and the profit margin will not be large.