财经少华
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💹 Knowledge Growth Classroom
Today, let's talk about a super important indicator in the financial industry—trading volume. Don’t be fooled by its seemingly ordinary name; it plays a significant role in the financial world. If you don’t understand it, you might take a wrong turn in your investment journey.
1. What is trading volume?
Trading volume is the total amount of financial products (such as stocks, futures, cryptocurrencies) traded over a period (like a day, a week, or a month). High trading volume indicates an active market, while low trading volume suggests a sluggish market.
2. The role of trading volume
Assessing market activity: High trading volume means prices are likely to fluctuate. Low trading volume indicates more stable prices.
Comparing buying and selling power: If there is more buying activity (active buying), the buyers are strong, and prices may rise. If there is more selling activity (active selling), the sellers are strong, and prices may fall.
Predicting price trends: Increasing volume with rising prices indicates bullish sentiment, decreasing volume with falling prices indicates bearish sentiment, and increasing volume with falling prices may suggest significant capital involvement, warranting attention.
3. Trading volume patterns
Contraction: Low trading activity, market opinions are aligned.
Bottom volume: Extremely low trading volume may signal a rebound.
Expansion: Active trading, with increasing divergence.
4. Trading volume techniques
Volume precedes price: Changes in trading volume often lead price changes.
Monitor moving averages: An upward trend in trading volume suggests bullish sentiment, while a downward trend suggests bearish sentiment.
Compare with history: Abnormal spikes in trading volume may indicate market changes.
5. Summary
Trading volume is an important indicator for analyzing market activity, buying and selling power, and price trends. Mastering it can help better understand market dynamics.
Today, let's talk about a super important indicator in the financial industry—trading volume. Don’t be fooled by its seemingly ordinary name; it plays a significant role in the financial world. If you don’t understand it, you might take a wrong turn in your investment journey.
1. What is trading volume?
Trading volume is the total amount of financial products (such as stocks, futures, cryptocurrencies) traded over a period (like a day, a week, or a month). High trading volume indicates an active market, while low trading volume suggests a sluggish market.
2. The role of trading volume
Assessing market activity: High trading volume means prices are likely to fluctuate. Low trading volume indicates more stable prices.
Comparing buying and selling power: If there is more buying activity (active buying), the buyers are strong, and prices may rise. If there is more selling activity (active selling), the sellers are strong, and prices may fall.
Predicting price trends: Increasing volume with rising prices indicates bullish sentiment, decreasing volume with falling prices indicates bearish sentiment, and increasing volume with falling prices may suggest significant capital involvement, warranting attention.
3. Trading volume patterns
Contraction: Low trading activity, market opinions are aligned.
Bottom volume: Extremely low trading volume may signal a rebound.
Expansion: Active trading, with increasing divergence.
4. Trading volume techniques
Volume precedes price: Changes in trading volume often lead price changes.
Monitor moving averages: An upward trend in trading volume suggests bullish sentiment, while a downward trend suggests bearish sentiment.
Compare with history: Abnormal spikes in trading volume may indicate market changes.
5. Summary
Trading volume is an important indicator for analyzing market activity, buying and selling power, and price trends. Mastering it can help better understand market dynamics.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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