There are several essential processes for individual investors to engage in stock trading. At the beginning, it was chaotic investment, but later I discovered that the stock market had certain patterns, so I gradually started to speculate based on the pattern; But over a longer period of time, it was found that the form was easily manipulated by the market makers, and at this point, a volume entered the view of retail investors - trading volume.

Why should we look at trading volume?

1. The trading volume can reflect the level of investor participation, and the more people participate, the more authoritative the signal reflected.

2. When the banker controls the market, if the trading volume is increased, there will be a situation where the gains outweigh the losses.

3. If the Zhuang family maliciously engages in long short trading and generates trading volume, it will violate the rules of the exchange and will be punished accordingly.

How to distinguish signals released by trading volume? Today, let's explore the technical signals of moderate and amplified trading volume.

Moderate increase in trading volume definition

1. Intuitively, the mild amplification of trading volume is reflected in a smooth anti parabolic rise in the volume column.

2. From a quantitative perspective, the turnover rate is approximately between 3-5%.

market analysis

Due to the decreasing number of chips in the hands of retail investors and the dominant position of the main bulls, the stock price is gradually rising. Market makers deliberately control trading volume to form a moderate upward trend in order to prevent market attention.

But how does the moderate increase in trading volume guide the market?

Practical essentials

1. Looking at position: The technical signals represented by moderate volume at different positions are also different. In various situations, the stock price remains low for a long time, while moderate volume trading has a bullish signal. This situation is a prelude to a significant increase in general stock prices.

2. Signal released: Mild increase in trading volume, usually indicating exploratory position building behavior by the main market makers. It can be imagined that in this situation, stock prices generally have a significant upward trend. But the market makers will never be so simple. When retail investors notice, the market makers will start washing up the market again, so the stock price may rebound.

But generally speaking, moderate volume trading is often an important reference indicator for the "dark horse" of the stock market. Therefore, these stocks are suitable for long-term holding.

3. Duration: The moderate volume increase time will not be too long, as the market makers need to prevent attracting market attention. Once caught by the market, either the market makers will take a washing action or the stock price will start to soar sharply.

In summary, in the early stages of the main force's intervention in individual stocks, various operational techniques will be used to obtain chips, but moderate volume trading is undoubtedly the most important one. In this way, it is not surprising to see repeated moderate volume increases in the trend of a long-term stock market.