Shrinkage and volume are two different trends in the market, and there is a clear difference between them.
First of all, shrinkage refers to the fact that in the process of shrinkage, the trading volume also decreases simultaneously. This means that there is less selling power in the market and a relatively small magnitude of **. Shrinkage usually occurs after the stock price has passed for a period of time, and investors in the market begin to gradually take profits, resulting in a gradual share price. In this case, the bearish power in the market is smaller, so the volume is relatively low.
Different from shrinkage, volume expansion refers to the process of volume expansion, but the volume is enlarged. This means that there is more selling power in the market, and the magnitude of ** is also relatively large. Volume increase usually occurs at the beginning of the stock price or when there is significant negative news in the market. Due to the emergence of a large number of sell orders, the stock price is rapidly **, and the trading volume is also significantly enlarged.
From the point of view of technical analysis, shrinkage and volume are also different for the market outlook. Generally speaking, the shrinkage indicates that the bears in the market are weak, and the market may appear to be strong and the market may continue.
To sum up, there is a clear difference between shrinkage and volume in the market. Investors should conduct specific analysis according to different situations to better grasp market trends and investment opportunities.