There are several important factors in stock trading - volume, price, and timing. Timing is the time to intervene, which is the most important. If the timing of intervention is chosen well, even if the stock is chosen poorly, there will be profits. However, if the timing of intervention is not good, even if the right stock is chosen, it will not rise and will be trapped.

And trading volume is a mirror reflecting the concentration and dispersion of stock market sentiment, and is the driving force behind price changes. Therefore, many retail investors manipulate stocks to gain profits by observing changes in individual stock trading volume. Therefore, in analyzing and identifying the goodness or badness of stocks, the coordination of trading volume is essential.

How to use trading volume to select stocks

1. At the beginning of the stock price launch, the daily trading volume is 2.5 times greater than the previous five day moving average trading volume of the stock, and 3 times greater than the previous 10 day moving average trading volume.

2. At the beginning of the stock price launch, the daily intraday volume ratio should be at least 10 or above, and the closing volume ratio should be at least 2.5 or above.

3. At the beginning of the stock price launch, the trading volume remained in a mild amplification state, and the volume performance divergence index VBIAS could maintain a rapid and sustained upward trend for 3 to 5 days. Moreover, within a period of time after the stock price launch, VBIAS could cross the 0 axis multiple times on the 24th.

4. The moving average trading volume VOSC indicator is greater than the 0 axis and gradually moves up slowly. Even if there is an adjustment, the time when the VOSC indicator is positive is much longer than the time when it is negative.

5. When the standard deviation indicator VSTD of trading volume rapidly rises to a rare high in the history of the stock, it indicates that the trading volume of the stock is excessively amplified. This extremely high position varies due to the different sizes and trading activity of various stocks, so there is no certain quantitative standard. Investors can compare the historical performance of individual stocks based on their VSTD indicators.

Trading volume selection skills

The first method of stock selection based on quantity and price is the unlimited limit up

Under the limit up and limit down system, the first unlimited limit down of a stock will continue to fall in the future until a large number of occurrences occur before rebounding or reversing; Similarly, the first unlimited limit up of a stock will continue to rise in the future until there are a large number of occurrences before it can rebound or reverse.

The second method of selecting stocks based on quantity and price is to increase volume at a low level and reach the limit up

There is always a reason for increasing volume: in the high price zone, some main players often compete with each other to increase volume, often placing large sell orders at certain price points and then eating them up to show their courage and attract market attention, or placing large buy orders at certain key points to show their determination to protect the market. All of these phenomena are false, and the real rise and fall of the center of gravity can be identified. If there is a surge in trading volume at a low level, it indicates that the institution is changing positions or preparing to boost the market, and can follow up at the right time.

Best buying point for trading volume

1. The best buying point for trading volume: Start to increase in volume after a slow climb - buy at the first high volume bullish line.

2. The best buying point for trading volume: buy when the stock price drops to a certain important support level and the volume stabilizes.

3. The best buying point for trading volume: break through important resistance levels with high volume - break through daily buying.

4. The best buying point for trading volume: buy at the first high volume bullish line at a low level - the bullish line.

Attention points for trading volume

1. Any entry or exit should be based on the overall market as the observation point. Do not do it when the market is not doing well, and do not be misled by rising stocks against the trend.

2. In most cases, the equivalent price no longer falls after shrinking, and once the volume gradually increases, this is a good thing.

3. In the process of decline, if the trading volume continues to shrink and reaches an "unimaginable" level on a certain day, and the stock price decline slows down, it is the time to buy.

4. When the trading volume shrinks and the new bottom point no longer appears for two consecutive days, the volume base can be confirmed and intervention can be considered.