Quantity and price reading mnemonic

Reduce holdings due to volume decline: volume increases and price remains flat, turning negative!

A new low in volume is the bottom line: volume increases, price increases, buyers!

Incremental rebound is key: quantity parity increases, alert!

Confirm to enter the market: quantity reduction and increase, hold!

New quantity and new price have reached a new high: the quantity has decreased and the price is flat, be alert!

There's no need to run away after reducing the quantity: if the quantity decreases, sell!

Be wary of a huge quantity: if the quantity is flat and the price drops, you will be eliminated!

Continue to run with value but no quantity: as the quantity increases, the price decreases. Hold the coin!

Top volume to escape: level the volume, be alert!

The significance of trading volume

In technical analysis, the relationship between research quantity and price occupies an extremely important position. Trading volume is the driving force behind stock prices, and effective market changes must be accompanied by trading volume. Trading volume is an important indicator, and the size of trading volume reflects the level of attention that a stock receives from investors.

Relationship between quantity and price

1. Trading volume is the power of funds

Always remember: funds determine trading volume, trading volume determines trend, trend determines rise and fall, and rise and fall determine the fate of investors. The trading volume corresponds to the transaction amount, also known as "money". As the saying goes, "Money is not omnipotent; without money, one cannot do anything.

Funds are profit driven, and the rise and fall of a variety are formed by the capital's grasp of the price. Some people shoot their guns, some cheer, and every process involves the presence of funds, which is most intuitively reflected in the trading volume.

2. Price quantity relationship

a. Price fluctuations have a unique rhythm, and trading volume also changes with this rhythm. In the debate between price and quantity, the argument that price comes first seems to have the upper hand. Changes in price trigger changes in mentality, ultimately leading to changes in trading volume, which is natural.

b. Resonance: In the process of guiding prices upwards, can the quantity be excessively increased, but only reduced and increased at the same level. Combining price observation is the most important: when the price drops, the main position does not change, and the volume shrinks; The rebound during this period also had no trading volume, which means there is still no intention to guide the price at this time.

Analysis of Trading Volume

1、 The three classic points of trading volume are:

1. Quantity is the leading indicator of price, also known as quantity before price.

2. First see the sky's quantity, then see the sky's price, also known as the sky's quantity and sky's price. Annotation: It can be seen as a sky high price on the same day or later, and there is no problem with either. In general, a high turnover accompanied by a high volume indicates a selling point, and a short-term high is formed.

3. After land quantity, there is land price, also known as land quantity and land price.

2、 Watch the trend

In general, trading volume tends to increase during an upward trend; The trading volume is showing a decreasing trend. Special circumstances will not be elaborated here for now.

3、 Analysis based on trend characteristics

Looking at the formation process of the head from head to shoulder, double top, and multiple top, many stocks often experience a sudden surge in trading volume before the formation of their head. Therefore, when the stock price experiences a sharp rise and the transaction volume doubles, one should be alert to the possibility of the head appearing.