What is the significance of analyzing changes in stock trading volume?
First , the degree of attractiveness of a stock to the market can be analyzed from the changes in trading volume. The larger the volume, the more attractive the description, and the more likely the price volatility will be.
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Secondly, from the changes in volume, the pressure and support price area of a stock can be analyzed: in a price area, if the volume is large, it means that this price area has great pressure or support, and the trend will stop or stop here. Invert.
Third, from the changes in trading volume, you can observe the direction of the price of the stock out of the densely traded area: when the price moves out of the densely traded area, it means that the long-short divergence has been temporarily unified. If it goes up, the price tends to rise. ; go down, it tends to fall.
Fourth, from the change of trading volume, we can also observe the relative value of the trading volume of the stock in different price areas to judge the continuity of the trend. As the price of the stock rises, the volume should decrease in steps, generally speaking, the higher the (corresponding) price of the stock, the (correspondingly) fewer people are interested or dare to participate. But this, from a turnover point of view, will be more concise and to the point.
Of course, just based on the trading volume, it is not possible to judge the change of the price trend, at least there must be price confirmation. Volume is one of the important factors for price changes, and it is also a factor that may cause substantial changes, but most of the time, it only acts as a catalyst.