Trading volume decreases, open interest decreases, price falls
This combination indicates that both bulls and bears have reduced their trading volume and tend to observe the market. The price decline is primarily caused by the bulls actively closing their positions. The decrease in trading volume suggests that the bulls are closing their positions rationally, without panic selling, and are seeking ideal prices to exit.
Therefore, the market is mostly characterized by a gradual decline, and the probability of a continuous drop is relatively high.
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This situation often occurs when a wave of market trends is nearing its end, with both trading volume and open interest decreasing simultaneously, indicating that either both sides or one side has lost confidence in the future market. Funds are gradually exiting. If this situation continues to develop, it will provide favorable conditions for new funds to enter, becoming a precursor to a market reversal.
Due to the relatively low trading volume and open interest, the market is easily influenced by external factors, resulting in significant price fluctuations that may cause unnecessary losses for investors.
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The price has started to fall from the peak of 1958.5 points, and trading volume and open interest are also decreasing simultaneously, indicating that both bulls and bears have lost confidence in the future market, and are choosing suitable prices to close their positions, with funds gradually exiting. When trading volume shrinks to a 'historic low' state, it also marks the beginning of a new market trend. Because both trading volume and open interest are relatively low, even a small amount of new funds entering can lead to significant price fluctuations. If this situation continues, it will provide favorable conditions for new funds to enter, becoming a precursor to a market reversal.