K-lines can be faked, and MACD has a lag, but only the "volume ratio" indicator cannot hide the true movement of funds. There are really people around me who have used it to turn a five-figure principal into a seven-figure principal, and catching consecutive limit-up main rising waves is as easy as playing a game. Take two minutes to thoroughly understand this article, and you may take three years less detours in stock speculation.
Old stock market investors who have been in the stock market for many years probably guessed it - yes, it is "volume ratio"! If you understand it thoroughly, and add the volume formula, it is no exaggeration that your account will be red every day. I have seen too many people fall in the stock market. Today, I will say something practical: If you can't handle the volume and volume ratio, there is a 90% probability that you will continue to lose money. This dry goods must be read repeatedly.
First engrave the numerical range of the volume ratio in your mind: less than 1 is a shrinking volume, 1 to 3 is a normal fluctuation, greater than 3 is a gentle increase in volume, 5 to 10 is a huge volume, and 10 to 20 is an exploding volume. These numbers are the basis for judging the market, and you must remember them accurately before you can continue to chat.
Just knowing the volume ratio is not enough. You have to match it with these 8 volume formulas to get the entry key:
1. If there is no volume at a high level, safety is guaranteed. When the stock price rushes to a high level, as long as there is no volume, it means that the selling pressure is small, so don't panic for the time being.
2. The volume ratio of washing the market is not enlarged, and there is no need to be afraid even if the decline is large. When the dealer washes the market, the volume does not increase. Even if the decline is sharp, it is mostly to scare people.
3. If the volume ratio is small when the price rises, the dealer wants it and we want it too. When the price rises, the volume is gentle, indicating that the main force is quietly eating goods, and it is right to buy along.
4. The volume ratio is enlarged and the real attack is launched, so don't miss the great opportunity. The volume suddenly increases, indicating that the market is really starting, so don't hesitate at this time.
5. Shrinking volume rises will continue to rise, and shrinking volume declines will continue to fall. It is difficult to reverse the trend when the volume is shrinking, and the original direction is likely to continue.
6. Huge volume at a high level will definitely rebound the next day; no volume at a low level means there is no hope for an increase. Huge volume at a high level means that the main force is shipping, and an increase with no volume at a low level is a "false fire".
7. If there is no volume decline at the top, the market will continue to reach new highs in the future; if there is a volume decline at the top, it will be difficult to reach new highs in the future. If there is no volume drop at the top, it may be a fake fall; if there is a volume drop, then it is a real top.
8. It is difficult for a limit-up without volume to continue, and the main fund must be considered; beware of a limit-down without volume, and it is difficult to stop the decline in the future market. A limit-up without volume will not last long, and a limit-down without volume will only continue to fall.
In fact, stock speculation is not that complicated. The volume ratio is like the market's "electrocardiogram", and the trading volume is the "footsteps" of funds. The main force can make fake K-lines, but cannot hide the true movement of funds. If you chew these rules thoroughly, you can be sure of whether to chase the rise or escape the top.
It doesn't matter if you can't remember it, first save it and take it out to study the market when you have time. When you can skillfully say the market corresponding to the volume ratio value and engrave the 8 formulas in your heart, you will find that: It turns out that making money in stocks really has rules to follow.
