The essential attribute of quantity and price

The most basic elements of market trends are trading volume and trading price. Volume price analysis is the study of changes in the relationship between trading volume and trading price, in order to predict the future trend of stocks.

The attributes of quantity and price analysis are the most essential characteristics of quantity and price analysis. Quantity and price analysis mainly has three important attributes, namely, the functionality, interactivity, and marketability of quantity and price.

Trading volume judgment skills

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.

5) After the trading volume shrinks, the longer the period of "price stability and volume contraction", the stronger the future upward momentum and the greater the rebound amplitude.

6) After reaching the bottom of the volume, if there is a huge surge in volume again, special attention should be paid to the daily market situation. Generally, a surge in volume is not a good thing, unless the volume shrinks and the price rises the next day, otherwise it is just a rebound.

Analysis of some terms related to quantity price relationship:

Volume reduction: Decreased trading volume. There are two ways to compare here, one is to compare with the previous day's quantity and energy; The second is to compare with the previous energy valley value. A contraction in the upward trend indicates a shortage of reinforcements from the bulls; A contraction in the downward trend indicates that bears are beginning to withdraw.

Land volume: also known as extreme contraction, if the trading volume of the market is reduced by at least 50% or more compared to the recent peak of volume, the reduction of individual stocks should reach 70% or more; If compared to the historical low point, it should at least remain stable, and it would be better to fall below the historical low point.

Huge volume: The sudden and rapid increase in volume, whether it is the overall market or individual stocks, is a huge volume that can reach or exceed the historical peak period. A huge amount appears in the uptrend, and regardless of the color of the candlestick, it is a peak signal; In a downward trend, there is a huge volume that can easily lead to a V-shaped reversal.