Generally speaking, breaking through the neck line level and strong pressure level requires a high-volume attack, that is, an upward trend requires the cooperation of trading volume; But when breaking or falling downwards, there is no need for the cooperation of trading volume. The market continues to decline day by day without any volume, until there is another increase in volume, indicating that new funds are entering the market to compete for rebound or bottom fishing. The increase in price and the decrease in quantity are called quantity price coordination, otherwise it is quantity price non coordination.

Although quantity is the first factor in price, it does not mean that trading volume determines everything. Among the four major elements of price, quantity, time, and space, price is the most basic starting point. Without price, other factors become like water without a source and wood without a foundation. The trading volume can be judged in conjunction with the price, but it will never determine the change in price.

The normal characteristic of market conditions is that stock prices rise with increasing trading volume, and this volume increase price increase relationship indicates that stock prices will continue to rise.

A decline in stock price, falling below the trend line or moving average of the stock price form, accompanied by a large trading volume, is a signal of a decline in stock price, indicating a reversal of trend and the formation of a bearish market.

The stock price has fallen for a considerable period of time, leading to panic selling. With the increasing trading volume, the stock price has dropped significantly, and after the panic selling, it is expected that the stock price may rise. The low price created by panic selling cannot fall below in a very short period of time. After a large number of panic selling, it is often the end of the short position.

The market has been continuously rising for a long time, with a sharp increase in trading volume, while the stock price has been struggling to rise, hovering at a high level and unable to rise significantly, indicating that the stock price is fluctuating significantly at a high level, with heavy selling pressure, thus forming a factor for the stock price to fall. After a continuous decline in stock price, there is a large trading volume at a low level, but the stock price does not further decline and only changes slightly, which is a signal of purchasing.

If there is no confirmation of trading volume, the price pattern will be virtual and its reliability will be poorer.

Trading volume buying pattern: Stock price shrinks, volume hits new low

If the trading volume continuously hits a new low during the continuous decline of the stock price, it means that as the stock price falls, fewer and fewer investors are willing to sell their stocks at a low price, and the stock price has shown signs of bottoming out. Once the future trading volume increases, it is a signal that multiple forces have entered and the stock price will begin to rise.

The first buying point: The stock price has shrunk and reached a new low in volume

In the process of stock price contraction and decline, the momentum of stock price decline has become weaker and weaker. At this time, investors can try to buy a small amount of stocks tentatively and establish some positions.

Second buying point: Volume increase

If the stock price experiences a period of contraction, decline, and then increases in volume, it means that multiple forces have begun to continuously push up the stock price. At this time, investors can actively increase their holdings and buy stocks.

Stop loss level: Stock price hits new low

After buying stocks, investors can continue to observe the future market trend. If the stock price hits a new low again in the future, it means that multiple parties are unable to continue to raise the stock price. At this time, investors should sell their stocks to stop losses.

Operation points:

1. Investors can use turnover rate as a specific indicator to measure the decline in trading volume. In general, when the turnover rate is less than 2%, it indicates a decline in trading volume, while when the trading volume is less than 1%, it indicates an extreme decline in trading volume.

2. During the continuous decline of stock prices, investors can buy a small amount of stocks first, and then buy a large amount when the stock price truly bottom out and rebounds.

3. If the stock price forms a bottom divergence pattern with indicators such as MACD during a continuous decline, or forms an oversold signal with the KDJ indicator, then the bullish signal of this pattern will be more reliable.

Trading volume and selling pattern: shrinking volume, reaching a new high

If the trading volume continues to shrink during the continuous decline of the stock price, it means that as the stock price continues to rise, there are fewer and fewer investors willing to chase after the high and buy, and there is a risk of the stock price peaking and falling in the future. Once the stock price reaches its peak and falls in the future, it indicates that the bears have started to continuously suppress the stock price, and the stock price will continue to decline in the future.

Selling point: Reduce volume and achieve new heights

When the stock price shrinks and reaches a new high, it indicates that as the stock price rises, its upward momentum becomes weaker and weaker. At this point, the stock price has shown signs of peaking and falling. In the future, if the stock price peaks and falls, investors should sell their stocks as soon as possible to avoid risks.

Supplement position: Increase in volume

After selling stocks, investors can continue to observe the future market trend. If the stock price does not continue to decline after reaching a peak in volume, but instead rises again in volume, it indicates that the strong upward trend in multiple parties is still continuing. At this time, investors can consider buying back the stocks they just sold and continuing to hold them.

After the stock price rises, it needs to be adjusted and consolidated. A decrease in volume indicates that the main force has not shipped, and the follow-up risk is relatively low. At this time, the stock price will quickly rise. However, it is necessary to understand the form of the stock, the position of the stock price, and distinguish whether the main force is washing up or selling. Observing its trading volume is key, and the following conditions must be met:

1. After a long-term sideways consolidation, the stock price rose to a new high, marking the first contraction and correction. If a cross star candlestick chart or a small bullish closing price is higher than the previous day during the correction, it can be followed up,.

2. After a long period of sideways consolidation, the stock price rose to a new high, followed by a second contraction and correction. During the correction, a cross star candlestick chart or a small bullish closing price higher than the previous day can be followed up,.

3. When the stock price rises, the turnover rate is around 3-5%, showing a moderate increase in volume according to the rules, and there should be no huge volume.

4. The best way to control this wave of stock price increase is around 20-40%, and those that quickly rise by 5 or 6 limit up boards should be given up.

5. Those whose stock prices have reached a new high after a high-level sideways trend should give up, showing a pattern of M tops and domes, and only choose single peak tops.

6. Be cautious of the main force's shipment if there are irregular trading volumes released in the early stage,

7. Pay attention to the volume ratio during a pullback, and it is best to control the volume ratio below 0.6 during a decline, with a smaller volume ratio being better.