#看懂K线

Understanding K-lines through the relationship between price and volume, grasping the pulse of the market

When we look at stocks or other markets, just looking at price fluctuations is not enough; trading volume (which indicates the activity of buying and selling) is the real 'traffic light' that tells you about market momentum. By analyzing price and trading volume together, you can help determine whether the market is stable and whether the increase is reliable.

1. Price up, volume up — Market is strong

When the price is rising and the trading volume is increasing, it indicates that more people are buying and everyone is very active, making the market quite vigorous. In this case, the bullish momentum is strong, and the probability of further upward movement is relatively high.

2. Price up, volume down — Rise lacks strength

If the price is rising but the trading volume is decreasing, it indicates that although the price appears to be increasing, fewer people are buying, and no one is willing to follow through. This kind of rise often cannot last long and is prone to being trapped.

3. Price down, volume up — Selling aggressively

When the price is falling and the trading volume is increasing, it indicates that many people are selling, and everyone wants to exit quickly, creating panic in the market. This decline is likely to continue.

4. Price down, volume down — Possibly stabilizing

When the price has dropped but the trading volume has decreased, it indicates that fewer people are selling, reducing the selling pressure. The market may be nearing its bottom or could be undergoing a brief adjustment.

5. Volume and price are not in sync — Be cautious

Sometimes the price rises impressively, but the trading volume does not keep up, which is called 'divergence between volume and price.' It's like 'talking about being strong while the body is not,' and this often signals a change in market direction, so caution is warranted.

In simple terms, when looking at K-lines, you cannot only look at the price; trading volume is a key supporting role. Analyzing price and volume together can help you discern whether the market is genuinely strong or just a 'fake sprint.' Learning to use the relationship between volume and price to analyze K-lines will give you more confidence in buying and selling, and help you avoid pitfalls.