High level volume increase refers to a situation where the stock price has accumulated a certain amount of profit after a period of rising, but still shows a large bullish trend with increased trading volume at a high level. This situation indicates that some of the profit taking positions have already been sold, and market divergence is beginning to widen. When we finally reach a high level of volume increase in actual operation, we can reduce our positions in batches. However, if the stock price turns down the day after the high level of volume increase, we should immediately clear our positions.

Especially when the stock price continues to increase in volume at a high level, it is highly likely that the main force has started to profit and sell, and is bearish in the later stage. The stock price may form a head in the later stage and enter a phase of decline or adjustment. In practical applications, we need to pay attention to the following four points when observing high-level volume increases:

1、 High position

The term 'high' refers to the relative high point of a stock price, which is formed during a certain period of time. Generally speaking, it is a temporary peak rather than a mid to long term peak. If a medium to long-term bottom is formed, the stock price may enter a long period of downward consolidation in the later stage.

2、 Volume increase

Generally, excessive trading will occur in an area with many previously trapped stocks, where many of them are released, resulting in significant selling pressure and leading to a high-level increase in trading volume.

3、 Rising

The increase in volume at a high level must exceed 50% of the previous low point in order to form a high level.

Generally speaking, a high volume increase is a sign of the main force's shipment, but it cannot be ruled out that there may be special circumstances, and sometimes there may be a high volume increase in inventory. Generally speaking, if it is the main shipment, after a high volume increase, it is usually accompanied by a decline. The fast ones will fall the next day, while the slow ones may wait for a few days. If the main force increases its position at a high level, the stock price often continues to rise shortly after the increase in volume occurs, ensuring that the funds invested by the main force are not trapped. In this situation, the market will continue to rise for a period of time.

Therefore, when we encounter a high volume increase, the best way is to sell half of the chips first and wait until the next day to observe the situation before making the final decision.