What is a sky-high volume? Sky-high volume refers to a situation where both buyers and sellers in the market are very active, and the trading volume reaches the highest record in a considerable period, indicating that the vast majority of investors have a very low consensus on the future trend of the market.
The characteristics of sky-high volume are exactly the opposite of those of low volume, representing an extreme manifestation of increased volume. There is a saying, "Sky-high volume leads to sky-high prices," meaning that if the price is at a peak during an upward trend, it is often an opportunity for short-term selling.
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A sky-high volume appeared while the price sharply surged (at the circled point). This sky-high volume has two characteristics: (1) it is the largest trading volume in the recent market; (2) after this sky-high volume, it is difficult to surpass this level of trading volume in the short term.
If a sky-high volume occurs with a sharp price surge, and after a price correction, the trading volume does not exceed this sky-high volume, then the peak of this sharp surge in sky-high volume may be the peak of this market wave.