Illustration of the relationship between volume and price at each stage: Price increase and volume increase
Price increase and volume increase means that when the stock price rises, the trading volume also increases. It is the most common bull attack mode, indicating that the price and volume are well coordinated and reflecting the high trading sentiment of investors. The enlarged trading volume indicates that there is an inflow of funds, the strength of the long position is strengthened, and the market outlook is bullish.
Note: 1. It is normal for the rising wave volume to increase, and the violent volume will shorten the lifespan. 2. Decreasing wave volume is normal, while a sharp contraction in volume means the decline slows down.
1. Price increase and volume increase in the early stage of the rise
(1) Pattern analysis:
The stock price stopped falling and stabilized. After the bottom was constructed, a pattern of price increase and volume increase appeared, indicating that investors gradually regained confidence in the market, bulls began to attack, and the market outlook was promising.
(2) Operational suggestions:
After this form appears, investors can actively follow up and go long.
(3) Example analysis
As shown in the figure, after the stock consolidated at the bottom for a period of time, the stock price broke through the low consolidation platform with heavy volume on one day, and then began to rise steadily. The enlargement of trading volume indicates that the market's willingness to do more is enhanced, and investors can actively intervene.
The price increase and volume increase in the early stage of the rise
2. The price rises and the volume increases on the way up
(1) Pattern analysis:
The price rises and the volume increases on the way up, indicating that over-the-counter funds continue to flow in, and more and more investors are optimistic about the later trend of the stock price.
(2) Operation suggestions:
The market outlook is bullish, investors can continue to hold shares or buy
(3) Example analysis
As shown in the figure, after the stock bottomed out, the stock price began to rise steadily. After a brief correction on the way, it increased its volume again and broke through the previous high, and a violent market began.
The price rises and the volume increases on the way up
3. Price increase and volume increase at the end of the rise
(1) Pattern analysis:
The stock price reaches a relatively high level after a sharp rise, and then continues to rise, accompanied by large trading volume. This form is suspected of being shipped by the main force while the price is high.
(2) Operational suggestions
1. Investors should hold shares cautiously and gradually reduce their positions.
2. Once there is sky-high volume and sky-high price, the market outlook is likely to reverse and fall. This is the time to sell.
(3) Example analysis
As shown in the figure, the stock has shown an increase in price and volume at a high level. However, judging from the trend of the stock price rising and falling and the large trading volume, this is caused by the main shipment, and investors should promptly Take profits.
The price increase and volume increase at the end of the rise
4. Price increase and volume increase in the early stage of decline
(1) Pattern analysis:
The stock price fell from the top, and then returned to the upward trend with the increase in trading volume. It is likely that the main force is inducing long shipments, and the stock price may continue to fall.
(2) Operational suggestions:
Do not blindly go long at this time. Investors should take advantage of the rebound to leave the market decisively.
(3) Example analysis
As shown in the figure, the stock price fell back after hitting a high level, and then rose again with heavy volume. However, this was only a temporary rebound, and the downward trend of the stock price has not changed. At this time, you should not blindly enter the market to do long, but should seize the last opportunity to escape.
The price increase and volume increase in the early stage of the decline
5. Price increase and volume increase on the way down
(1) Pattern analysis
In a downward trend, after the stock price drops sharply, there will often be a short-term price increase and volume increase, but the downward trend will not change.
(2) Operational suggestions
: If trading volume cannot continue to increase, the rebound will end and investors should continue to wait and see.
(3) Example analysis
As shown in the figure, after the stock fell sharply, there was a short-term increase in price and volume. Then the trading volume shrank again, the rebound ended, and the stock price continued to fall. This phenomenon often occurs because the main force is pumping and selling on the way down.
The price rises during the decline and the volume increases
6. Price increase and volume increase at the end of the decline
(1) Pattern analysis
After the stock price fell sharply, it entered the bottoming stage. At this time, a pattern of price increase and volume increase appeared, indicating that bulls are testing the market, but whether it has stopped falling and stabilized still needs further confirmation. .
(2) Operational suggestions
: There may be a correction after the rise. At this time, do not blindly go long and wait until the rise is confirmed before entering the market.
(3) Example analysis
As shown in the figure, after the stock fell for a long time, it showed a trend of price increase and volume increase at the low level, indicating that OTC funds began to tentatively go long. In the following three weeks, the stock successfully established a bottom. And out of the large-volume upward trend.
The price increase and volume increase at the end of the decline
7. Price increase and volume increase in the consolidation trend
(1) Pattern analysis
The stock price fluctuates up and down within a certain price range. At this time, a price increase and volume increase pattern appears, indicating that funds are involved and the market outlook is expected to break away from consolidation.
(2) Operational suggestions
: If the stock price has a tendency to break through consolidation with heavy volume, investors can pay close attention and choose the opportunity to enter the market.
(3) Example analysis
As shown in the figure, the trading volume of this stock has maintained a relatively balanced state since the consolidation. On one day, the stock price went out of a trend of rising volume and trying to break through the whole market. Investors should pay active attention at this time and can intervene decisively once the stock price effectively breaks through.
Price increase and volume increase in the consolidation trend
