The trading volume is the driving force behind price changes, and its position in practical technical analysis is self-evident. Below, we will introduce the fundamental law of trading volume changes - the application law of volume and price.

1) The unlimited limit up of the stock selection method based on quantity and price:

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.

2) The stock selection method based on quantity and price, with low volume and high 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.

3) Low level consolidation of volume price stock selection method:

After a long-term decline in stock price, the trading volume forms a trough, and the stock price rebounds. However, the trading volume does not increase with the price rise afterwards. The stock price does not rise again and may not fall to the vicinity of the previous trough, sometimes higher than the previous trough. However, when the trading volume is significantly lower than the first trough at the second trough, it indicates that there is no downward momentum. A new wave of rise is about to emerge, and buying can be considered.

4) Breaking through the price based stock selection method:

When falling, regardless of quantity, as long as the pattern (moving average, trend line, neck line, box) breaks, it is necessary to take profits and stop losses in a timely manner to exit.

5) High level liquidation of volume price stock selection method:

If even the last two suns cannot swallow up the long black in the high priced area, it indicates that the sky high price has been established and the warehouse should be cleared in a timely manner; Regardless of whether there are positive or negative factors in the high price area, as long as there is a huge volume, we should be alert to the formation of the head.

6) The stock selection method based on quantity and price has no daily price:

The trading volume reaches a historic high, but the stock price cannot reach a new high the next day, indicating that the stock price is bound to rebound; Similarly, if the trading volume reaches a historical low and the price no longer falls, it indicates that the stock price is about to stop falling and rebound.

7) The stock selection method of quantity price method: Low level quantity price simultaneous rise:

In a bearish market, a rebound where both volume and price can break through the previous high often indicates the end of the bearish market; In a bullish market, if the trading volume reaches a new high after the price reaches a new high, it often indicates the end of the bullish market and the beginning of the bearish market.

8) Quantity and price selection method for land measurement and land price:

The relative volume that appears in an upward trend and the stock price falling back to the important moving average (5-day, 10 day, 30 day) is often an excellent short-term buying point.

9) Low level volume stacking in the stock selection method based on quantity and price:

There are generally two characteristics of the trading volume changes of dark horse stocks at the bottom: one is that the trading volume suddenly increases from a certain day at a low bottom, and then maintains a certain amplitude, almost every day at this level. On the daily chart, the stock price rises slightly and often appears in a cross star shape when it falls; Another way is for the trading volume to gradually increase from a certain day and maintain this amplification trend. The stock price often shows a slight and sustained rise, indicating that the main force has no patience or time to slowly purchase, and has to push the stock price up while pulling it up.

10) The Low Breakthrough Platform of Volume Price Stock Selection Method:

At the end of the consolidation at the bottom of the stock price, the fluctuation range of the stock price gradually decreases; After the trading volume shrank to its peak, there was an increase in volume, and the stock price broke through the market with a bullish trend and stood above the 10 day moving average; The trading volume continues to increase and the stock price continues to close at the bullish line, with the principle of leaving the bottom price for three days; After breaking through, the stacked moving average turned into a bullish pattern. This is the best short - to medium-term buying point, and also a perfect sample for the combination of volume price moving averages