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Introduction To Stock: The Implication Behind Trading Volume

2011/4/27 12:01:00 55

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Short Term Investment Tail Price Empty Main Force

In the rally of stock prices, the outcome of the consolidation or decline is likely to be quite different.

And the opportunities for insight into such subtle market changes are generally

Short term investment

The most important basis for judging this situation is the overall running state of the 10 day moving average of the stock price.

(1) during the rally (when the 10 day moving average of the stock price rises)

The price increase in the late market: the increase in volume and price in the rally is a sign of full accumulation of people. This shows that investors in the market are still optimistic about the future development, and the stock price of the next trading day will still be higher.

Late price

Incremental contraction: this situation is mostly in the rush stage.

On the next trading day, the stock price is usually mainly based on the high jump. The investors who did not buy the stock market yesterday mostly filled the high unit price to catch up and buy.

However, since the stock has not been fully exchanged, after the high opening, the selling pressure will increase gradually due to the increase in profit taking, and there will be more influence lines on the next day.

The sharp drop in the volume of late market is: if it is not in the huge phase of the huge increase, there will be a huge amount of Long Yin K-line form. Then the phenomenon of sharp drop in volume will appear in the late stage.

On the next trading day, the stock price will usually be opened on a flat or high plate, but the premise of this situation is that the volume of trading on the end of the day should not be too large in principle.

(two) consolidation (when the average moving average of stock price is flat on the 10 th day).

Late price increases: at the end of the consolidation phase, the main force of the two sides fought for a long time, and finally gained the upper hand with the efforts of many main forces.

When the disk suddenly starts to attack, the next day's trading price will often be opened on a flat or high plate.

The price of the late market is increasing: in the late stage of consolidation, there is a price increase. This shows that the main force of the two sides is in a close confrontation.

Empty main force

Then the momentum takes up the upper hand, the victory and defeat have been first known.

At this time, the market suddenly launched the offensive, and the stock price of the next trading day was usually opened on a flat or low plate, and most of them would fall into the fall stage due to the weakness of the main force's counterattack.

The price increases before closing: in the consolidation trend, the stock price will soon encounter the level. If there is a lot of sudden pull at the end of the market, the stock price of the next trading day will be mostly driven by a high pass. However, because the main dealer does not want to or does not possess the strength of the upside, it will only create an upward illusion of the breakthrough with the help of a surprise attack on the market, and lures off the market investors to see more.

Therefore, it is very easy to form a conclusion of high jump and low walk, with a false breakthrough.

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(three) in the downtrend (when the moving average of the stock price falls on the 10 day)

The final price is down: in the downtrend, the end of the stock market is shrinking. This shows that no one is willing to pay the purchase order, the selling pressure will be pferred to the opening day of the next trading day, and the stock price of the next day will be sold out of a low price because of the selling.

Late price increases: in the downtrend, the late price increases all the time, the K-line graphics generally leave behind the shadow line, the disk trend has two possibilities: (1) RSI is not low-grade and when the K-line receives the middle Yin, due to the involvement of short term funds, there is an opportunity to rebound.

However, if the price of the next trading day is always on the downstream side of the flat market, it may be that the main dealer is using the tail market to lift more, so as to lower the shipment next day. This is the signal that the market will jump downward.

(2) RSI is at a low level and the line is narrowed down. When the volume and price increase all the time, the timing of cooperation is at a low level of 6 days RSI. Then the next trading day is often driven by high disk and triggers a rebound trend.

(four) special conditions

At the end of the rally, the rally began to show a correction rebound, and was close to the lowest point when it closed, indicating that the main force of the empty side still dominates the advantage. This trend will be opened on the next trading day on a flat or low plate, and the stock price trend on the next trading day is liable to fall.

Before the end of the session, there has been a marked rise, but the last 10 minutes of the late market began to grab the market, and the volume of shares increased substantially and pushed the share price to go all the way. This situation is mostly speculative short-term intervention, which is not very profitable for the next trading day.

After the opening of the next trading day, if there is a pressure of short-term profit taking, if we can not digest this part of the selling, the rally will be very difficult to sustain, and the selling pressure will soon emerge after the high opening.