Automatically generated trading volume analysis rules to help you gain insights into market fluctuations!
First Rule: Shrinking Volume on Uptrend, Main Force Confident in Winning
When there is a trend of rising with shrinking volume, it indicates that the main funds are locking in positions and steadily pushing the stock price upwards.
Second Rule: Sideways with Shrinking Volume, Beware of Potential Risks
If the market is consolidating within a certain price range and the trading volume continues to shrink, it may indicate a lack of clear direction in the market, and investors should remain vigilant.
Third Rule: Shrinking Volume on Downtrend, Trend Not Yet Stopped
If the stock price continues to decline with shrinking volume, it indicates that while selling pressure is heavy, buying power is insufficient, and the trend may continue.
Fourth Rule: Expanding Volume on Downtrend, Clear Selling Point
When there is an increase in volume during a price decline, it means a surge in selling pressure, and one should decisively exit the market.
Fifth Rule: Expanding Volume with Stagnant Price, Selling Pressure Increases
If the price is rising but the trading volume expands, it indicates significant selling pressure above, and the market may face adjustments.
Sixth Rule: Bearish Volume Covers Bullish, Timely Exit
When the trading volume of bearish candles exceeds that of bullish candles, it shows that bearish forces are dominant, and one should timely escape to avoid risks.
Seventh Rule: Long Bearish Candle Followed by Shrinking Volume, Signs of Uptrend Emerging
After experiencing a significant long bearish candle decline, if shrinking volume occurs subsequently, this may signal a stabilization of market sentiment, and an uptrend opportunity may soon arise.
Eighth Rule: Shrinking Volume with Long Bullish Candle, Precursor to Big Rally
After a continuous price decline, if there is shrinking volume but the price shows a long bullish trend, this may be a precursor to a big rally, and one should pay attention to subsequent movements.
The above rules are for reference and learning purposes only and do not constitute any investment advice. Please operate cautiously according to your own risk tolerance, as the market has risks and investment requires caution.
