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This article will reveal the crucial volume-price relationship in **. In the process, I have learned a lot of practical methods and techniques, the most important of which is "volume and turnover rate". If you're eager to turn your career into a second career and make a solid profit, then be sure to Xi this article carefully, as it will save you a lot of detours.
1.Introduction to the relationship between volume and price
In **, the relationship between volume and price is inextricably linked. Understanding this relationship can help us better determine the upward and downward trend of stock prices. Let's start by understanding the definitions of volume and turnover rate.
Volume: The volume of transactions per unit of time, including daily volume, monthly volume, etc.
Price: refers to **, usually based on **price, but also consider the opening price, the highest and lowest price.
The relationship between volume and price refers to the relationship between the volume and the synchronization or divergence. Next, we will delve into the four aspects and show the application of the volume-price relationship in the world.
2.Four aspects of the relationship between volume and price
2.1.A warning of a weak trend.
Light volume can be a precursor to a weakening trend. In particular, when the market is making new highs or new lows with thin volume, caution should be exercised at this time, as this is usually the case with suspicion.
2.2.Confirm the current running trend.
The market is going up or down, and the increase or decrease in volume can be used to confirm the trend. Trend confirmations include large or gradual increases in volume, and contrarian actions are accompanied by a gradual decrease in volume or thin volumes.
2.3.How to confirm a range breakout.
When the market is in a range-bound range, a sharp increase in trading volume can confirm a breakout of the range. If there is a breakout but the volume is not cooperative, proceed with caution as this could be a sign that the market has not really changed its current operating range.
2.4.Volume catalyzes stock price gains and falls.
*The size of the volume reflects the market's interest in the **. When more people or more money are bullish, the trading volume increases, and the stock price increases. On the contrary, when you are not optimistic, the trading volume decreases and the stock price is **.
3.The mystery of turnover rate
In **, the turnover rate is a crucial indicator. It reflects the activity of **, and the turnover rate varies from low to high. Here's a quick rundown of the five types of turnover performance:
The turnover rate is less than 1%:* activity is not enough, the liquidity is poor, and there are very few**.
The turnover rate is between 1% and 3%, :* activity is moderate, and it is in the normal fluctuation range.
The turnover rate is relatively active :* 3% to 8%, and market participation is strong.
The turnover rate is between 8% and 15%, :* activity is very high, and there is usually the intervention of the main capital, which is a hot **.
The turnover rate is greater than 15% :* activity is too high, which may indicate that the main force has shipments. If it is continuous** and the turnover rate is greater than 25%, it may mean that the main force is shipping.
Through a deep understanding of the relationship between volume and price, we are able to achieve better profitability in the best market. Remember, volume and price go hand in hand, and the subtle relationship between them can help us judge market movements more accurately and avoid unnecessary risks.
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Risk Warning: The market is risky, investcapitalCaution is required.
All of my articles represent my personal views only and do not make any recommendations.
Every investor should be able to think for themselves and make their own judgments!