How to choose stocks based on volume price relationship? Practical skills for stock selection based on volume price relationship

The volume price relationship, in simple terms, refers to the matching correlation between the stock price and the trading volume of the stock. A high trading volume of a stock indicates that everyone is interested in it, so many people come to buy it, which increases the probability of the stock soaring. On the other hand, a small quantity indicates that there are few buyers, and even if the stock is rising, it will rise slowly.

  How to choose stocks based on volume price relationship?

1. Under the rules and regulations of stock limit up and limit down, the first unlimited limit down of a stock will continue to cause another limit down until many occurrences occur before it can rebound or flip; Similarly, the first unlimited limit up of a stock will continue to rise again until there are many occurrences before it can be downgraded or flipped.

2. In the sky high price zone, one long black line cannot be swallowed up even if the last two large bullish lines indicate the establishment of a high price, and immediate liquidation should be carried out; Regardless of whether there are positive or negative factors, large bearish or bullish candlesticks in the sky high price zone, if there are a large number of them, it is important to be alert to the emergence of a top and bottom position. This is one of the key points for selecting stocks based on volume and price.

3. The trading volume sets a new historical record, but the stock price cannot reach a new high the next day, indicating that the stock price is bound to decline; Similarly, if the volume continues to decline for a historic period of time but the price has stopped falling, it indicates that the stock price is about to stop falling and rebound.

4. The size of trading volume determines whether stocks are competing for rights before ex rights and ex dividend, and whether they are filling in rights after the early stage: if trading volume increases after ex rights and ex dividend and the bullish candlestick line widens, there will be a filling in market trend; What usually occurs when there is no quantity or reduction of drugs is the option to stick stocks. It is important to pay attention to how to select stocks based on quantity and price.

5. In a bearish market, when there is a rebound where both volume and price can increase compared to the previous one, it usually indicates the end of the bearish market; In a bullish market, when the price reaches a new high and the volume continues to perform well, it often indicates that the bullish market is over and the bearish market is about to begin.

6. There has always been a reason for the increase in volume: in the sky high price zone, some major players usually knock on the increase in volume, often putting large selling orders at certain prices, and then swallowing them up to show their confidence in attracting the blind eye of the sales market, or putting huge stock buying orders at some key points to show their confidence in the stock's decline. The situation that cannot be denied is all false, and the real elevator of the center of gravity can be identified. If there is a surge in trading volume at the bottom level, it indicates that the organization is changing stocks or preparing in advance to raise a market trend. It is crucial to track the situation in a timely manner and select stocks based on volume and price.