Many investors know that the momentum for price increases comes from trading volume. The ideal bullish trend occurs when prices rise alongside increasing trading volume. Such a price increase is genuinely driven by volume and is a healthy rise, making it more likely to succeed when entering long positions. When we notice that prices continue to rise while trading volume does not increase, it may indicate that the bullish trend has paused or even reversed. If one holds long positions during such a trend, they should consider reducing their positions or closing them entirely.
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The contract price has been rising continuously, forming a relative high around 785 points. After a slight adjustment, it surged again, reaching a maximum of 786.5 points. If we look purely at the K-line patterns, many investors might enter long positions based on the price breaking through previous highs. However, if we closely examine the trading volume below, we see that while the price rises, the volume is shrinking. Thus, the momentum behind this price surge is questionable. When investors encounter such bullish trends, if they find that prices are rising but trading volume is not cooperating, they should reduce or close their long positions.