Looking For Cattle Stocks By Volume Change

There is a proverb in the stock market: quantity first.

That is, we can judge the future trend of stock prices through volume changes.

Therefore, the analysis of volume can be said to be a very important part of technical analysis. Investors can only grasp the trading points of stocks correctly by carefully and carefully examining the changes in volume and grasping their rules.

This paper intends to make a general analysis of the turnover performance and coping strategies at different stages.

Volume performance during the rising process

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Let's first analyze the first rising wave and the third rising wave.

At the beginning of the rise of stock price, the volume of stocks will be mildly enlarged when compared with the volume at the bottom of the stock market. This shows that the main force of the market has started to operate actively, pushing up the stock price up.

At this point, investors can actively intervene.

Sometimes, when some stocks are built at the bottom of history, when the stock price starts, they will put a huge amount of mark. After that, the stock price rises all the way, indicating that the organization has been highly controlled and the chips are in good condition.

In such a situation, investors should actively intervene in the first time when the stock price starts.

Third the rising wave is the main wave rising in the stock price rising process. This wave is the wave of the largest share price, the longest running time and the most popular popularity. At this stage, the volume is very active, but there are also some stocks that will moderate the volume when the third wave starts, and the subsequent amount will shrink as the share price rises all the way, which indicates that the level of the main control is quite high.

At this stage, investors can find appropriate opportunities to intervene if there is no rapid increase in stock prices and no abnormal turnover.

At the high point of the first wave and the third wave, the stock price tends to show the characteristics of the phased volume. It is because the stock price has been rising after a period of time, and the profits and disks have begun to cash.

The final stage of the stock price rising cycle is the fifth wave. At this stage, the stock price will continue to hit a new high. When the share price reaches a high point, there will be a wide and severe concussion, and the volume will also enlarge obviously compared with the first two rising stages.

At this time, the main force has been more and more obvious through violent concussion to achieve the purpose of shipment. Investors should not be reluctant to leave the market at this stage.

Fall stage volume performance

When the five wave of market or stock rises, the market will go down.

At the beginning of the fall, because most people are hard to judge the nature of the market decline, the market wait-and-see atmosphere is thicker, and there will not be much volume in this stage.

But as the market continues to adjust, some of the funds realize that the market has weakened, and begin to look for opportunities to rebound, such as stocks or market break down neckline or platform break position. When returning to the neckline or platform, many stops will be thrown out, forming a characteristic of volume drop.

When some stop loss funds run away, the market will further fall, that is, entering the mid-term decline stage. At this stage, many investors are deeply locked up, so the meat cutting plate is very small. The peripheral capital is also in a cautious wait-and-see state because the market is down, so buying is also very small, so the volume in the middle of the fall will not be large.

At the end of the fall, the market will be affected by all kinds of bad rumors, which will affect the persistent disk.

These funds will cut meat because they are afraid that the market will continue to plummet. Most of the funds will be sold at this time. This phenomenon shows that the market is not far from the bottom.

At this point, there will be a number of beforehand funds to absorb some chips in advance, forming a phased volume.

Finally, the agency may use the chips collected to deliberately suppress the stock price and create a new bottom, thus forming a real middle and long term bottom area.

The big main funds will go to the bottom to absorb chips.

The volume of this stage has obvious signs of enlargement compared with the volume in the early fall process.

The activity of the market began to increase.

When the main warehouse is completed, the market will go up again, thereby completing the cycle of rising share price to rise and then rise.

As long as investors thoroughly analyze and summarize the changing rules of volume in different stages, investors can take the initiative to attack in stock investment and grasp it accurately so that the efficiency of investment can be greatly improved.