12/15/2021
The relationship between trading volume and stock price is reflected in the following two situations:
Volume and price in the same direction: that is, the stock price changes in the same direction as the trading volume. The stock price rises and the transaction volume also rises, which is the continued optimistic performance of the market; the stock price declines and the transaction volume decreases accordingly, indicating that the sellers are optimistic about the market outlook, holding positions are reluctant to sell, and there is still hope for a rebound. Volume and price divergence: that is, the stock price and trading volume are in the opposite trend. The stock price rises but the trading volume decreases or remains flat, indicating that the rising trend of the stock price cannot be supported by the trading volume, and this rising trend is difficult to maintain; the falling stock price but the rising trading volume is a precursor to the downturn in the market outlook, indicating investors' fear of catastrophe. Sell off the market. Trading volume is a mirror that reflects the accumulation and dispersion of stock market sentiment. When the popularity is strong, the buying momentum is large, and the transaction volume will naturally increase; on the contrary, when the popularity is low, investors are hesitant, and when the popularity is low, the transaction volume will inevitably shrink. Trading volume is an effective way to observe the dynamics of large traders. Huge amounts of money are the essence of big market makers, and all their intentions must be realized through transactions. The transaction volume has increased significantly, it is likely that the dealer is buying and selling
