Investors must see: Detailed explanation of trading volume changes

Many Huimin investors do not have a clear understanding of the laws of trading volume changes. Mastering the analysis of trading volume is an important skill for looking at the market. Excellent sense of the market comes from the usual learning and accumulation, and it cannot be fully explained in a few words. Combining trading volume analysis with K-line analysis can more accurately understand the trading situation of the market, so as to understand the inherent laws of exchange rate fluctuations. Here the eight stages of trading volume changes are summarized as the "eighth-order law" for investors to practice GMIForex PlatformTime reference. 1. Volume increase and price flat, turn positive signal: When the exchange rate continues to fall into the low area, there is an increase in trading volume and the exchange rate stabilizes. At this time, the positive column line of trading volume is obviously more than the yin column, and the difference between convex and concave volume is more significant, indicating that the bottom is accumulating upward momentum. There are main funds in the purchase. It belongs to the mid-line turn positive signal, and you can buy stocks in moderation to be raised. Sometimes there will be "volume increase and price flat" in the middle of the upward trend, indicating that the upward trend of the exchange rate is temporarily blocked. As long as the upward trend is not broken, there will still be market conditions after sorting out.

2. Volume increase and price increase, buy signal: The trading volume continues to increase, and the exchange rate trend also turns to rise, which is the best buy signal in the short and medium term. "Volume increase and price increase" is the most common bull active attack mode, and investors should actively enter the market to buy.

3. Volume parity rises, continue to buy: the trading volume remains at the same level, the exchange rate continues to rise, and you can participate in a timely manner during the period.

4. Volume reduction and price increase, continue to hold: The trading volume decreases, and the exchange rate continues to rise. It is suitable to continue to hold foreign exchange. If the lock-up phenomenon is better, it can only participate in the short-term with small funds, because the exchange rate has already risen quite a bit, approaching the end of the rise. Sometimes there will be "volume reduction and price increase" in the early stage of the rise, which may be short-lived, but there is still room for upside after the follow-up make-good.

5. The volume is reduced and the price is flat. Warning signal: the trading volume is significantly reduced. After the exchange rate has risen sharply for a long time, it will no longer rise horizontally. This is a signal for shipments. If there is a sudden huge amount of sky at this stage, pulling out the big sun or the big negative line, regardless of whether there is good or bad news, you should leave the market decisively.

6. Volume reduction and fall, sell signal: The volume continues to decrease, and the trend of the exchange rate begins to decline, which is a sell signal. This is a boundless decline, and the bottom is far away. The so-called bulls do not die and fall until the bulls completely lose confidence to close their positions and accept compensation. There is a large volume, and the decline will stop. In operation, as long as the trend reverses, the loss should be stopped in time.

7. Volume parity falls, continue to sell: Trading volume stops decreasing, and the exchange rate declines rapidly. At this stage, we should continue to adhere to the principle of selling early, do not buy easily, and avoid risks.

8. Increase in volume and fall in price, abandon selling and wait-and-see: After the exchange rate has fallen sharply for a long time, the trading volume has increased. Even if the exchange rate is still falling, it is necessary to treat the extremely panicked "fall" with caution. The operating principle at this stage is to give up selling and wait and see with short positions. The increase in the low-price area indicates that there are funds to take over, and a bottom is expected to form or rebound later, which is suitable for attention. Sometimes if there is a "volume increase and price decline" in the early stage of the trend reversal, it should be decisively cleared out.