trading volume. Volume Flow is Price Flow. The basics of stock trading. The trading volume predicts the rise and fall of stock prices.

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□ trading volume

Trading volume is an indicator of the trading volume of financial products such as stocks, futures, and options. Volume is calculated by counting the quantity of contracts bought and sold during a given time period. Volume can be tracked daily or based on time intervals such as intraday.
Trading volume is closely related to stock price. In general, stocks with high trading volume are more likely to see their stock prices rise or fall. This means that stocks with high trading volume have many buyers and sellers, which indicates that the power to move the stock price is strong.
Conversely, stocks with low trading volume are less likely to see their stock prices rise or fall. This means that stocks with low trading volume have fewer buyers and sellers, which means less power to move the stock price.
Volume can also help determine a stock’s trend. Typically, a trend with increasing volume is a strong trend, and a trend with decreasing volume is a weak trend. This means that a trend of increasing trading volume means that the power to move the stock price is strong, and a trend of decreasing trading volume indicates that the power to move the stock price is weak.
Volume can also help you formulate a trading strategy for a stock. In general, stocks with increasing trading volume are good stocks to buy, and stocks with decreasing trading volume are good stocks to sell. This is because stocks with increasing trading volume are likely to rise in stock price, and stocks with decreasing trading volume are likely to fall in stock price.
Trading volume is a very important indicator in stock investment. By making good use of trading volume, you can determine stock prices and trends and develop effective trading strategies.

□ If trading is active, popular stocks or houses that do business well

There is an important point when looking at the chart to see when my stock will rise. is the trading volume. Trading volume refers to the number of shares traded in the stock market. There are many people who want to buy and sell popular stocks, so deals are concluded well and trading volume increases. It’s a good business house. When looking at the chart, if the trading volume is active, you can detect that it is a popular stock.

volume flow
volume flow

□ Trading volume precedes stock price

Volume is said to have the property of preceding stock prices. It is said that the trading volume cannot be faked, but stock prices can fluctuate and deceive investors.


□ Increases when trading volume increases, decreases when trading volume decreases

Basically, when the volume increases, the stock price rises, and when the volume decreases, the stock price decreases. If the trading volume reaches the top, we believe that the stock price will not rise any more and will turn downward.


□ If the trading volume does not exceed the previous day’s volume, it will decrease

In an uptrend, if the trading volume does not exceed the trading volume of the previous day, it is judged to be weak.


□ When the trading volume of the hindquarters doubles or more, soars

When the stock price rises more than twice as much as the stock price, the stock price may rise further.


□ A breakout of the previous high is an uptrend

In a situation where the previous high is broken or the new high is required, the trading volume at the previous peak or the previous trading volume must be formed to break through the high and renew the new high.


□ Decrease in trading volume is down

If the trading volume increases at the beginning of the stock price rise and then decreases again, it is judged that it is losing power and the stock price is declining.

□ In short-term trading, the trading volume of the executed unit is important

In short-term trading, the volume of units executed is the most important. In other words, if you look at the contract price provided by the current screen, the trading volume is displayed every time a trade is signed next to it.

Usually, the trading unit of forces is 5,000 shares, 10,000 shares, or 20,000 shares, so you can check whether it is an individual transaction or an expert transaction by looking at the transaction volume. If the trading volume stays below the 20-day moving average for a while and then trades above the 20-day moving average for more than two consecutive days, the stock will attempt to rise. As the downtrend continues, when the stock price is at the bottom and the trading volume is at the bottom, there is usually a sell-off, and this is the best time to buy.

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