Trading volume is an important indicator for technical analysis. Although market makers may generate false trading volume when suppressing fundraising and boosting sales, investors can judge the intention of market makers based on the position of the stock price.

When the trading volume gradually increases, investors can judge the stock market situation based on the following situations:

1. An increase in trading volume indicates an increase in buyer demand, active turnover, and a bullish stock price.

2. The increase in trading volume indicates the influx of speculative capital into the securities market, which naturally leads to active trading and a subsequent rise in the market. An increase in trading volume indicates smooth liquidity of stocks, a prosperous securities market, and an inevitable surge in stock prices. The trading volume has increased, the speculative atmosphere is strong, the market foundation is unstable, and the stock price may decline at any time.  

3. Excessive expansion of trading volume naturally leads to a sharp rise in stock prices, making it quite easy for market players and large investors to sell out. Small and medium-sized investors cannot determine the true intentions of the main players, and there is a high possibility of continuing to rise or dying. When trading volume decreases, floating chips will inevitably increase, selling pressure will surface, stock prices will also decline, investor interest will greatly decrease, funds will quickly be withdrawn from the securities market, and there will be no time to retreat, passively trapped, waiting for the securities market to become active again before there is a chance for rebirth. From a positive perspective, an increase in trading volume indicates a prosperous securities market and a rise in stock prices. However, high profits come with high risks. Investors should not forget the existence of risks when obtaining returns.  

In technical analysis, the warning effect of trading volume is also evident. The most obvious situation is when stock prices soar, trading volume surges, and the total trading volume and stock index continuously reach new highs; But if only the trading volume increases and there is no significant increase in stock price and stock index, it indicates that the stock price has reached its peak and there is a high possibility of a retracement, which is also a time for investors to be vigilant. When a stock that has been rising for days suddenly opens high and closes low, investors should pay special attention. This situation indicates that there are signs of a stock price rebound, and it is best to temporarily avoid it when dark clouds are gathering; The trading volume is shrinking day by day, and the stock price is gradually driving its former strength, indicating that the stock has gradually approached a high price, and investors can consider taking profits.  

In short, behind the special signals of the securities market, there must be another new beginning hidden. Instead of braving the wind and rain, it's better to take a break first.