In A-share investment, there are two terms that are often mentioned but not understood by most investors, that is, the significance of the terms "large-scale" and "small-scale**" is very important in technical analysis, which can provide investors with a certain reference and judgment basis. The following will detail these two concepts and their differences, and give some examples to help readers understand better.
1.Volume**: Volume** refers to the phenomenon that the trading volume increases significantly in the process of stock price**. This usually indicates that there is a large influx of money in the market and indicates that the market is more bullish on this or the whole market. Increasing volume often occurs at the turning point of the trend and is one of the signals of a market reversal.
2.Shrinkage**: Shrinkage refers to the gradual decrease in trading volume when the stock price is **. This shows that most people in the market have the same view on the trend of the market outlook, either bearish on the market outlook so that only people throw no one in, or optimistic about the market outlook so that only people enter and no one sells. Drawdown** usually occurs in the middle of a stock price action and is a confirmation signal that the market** trend continues.
1.Operational strategy of large-scale **: For large-scale ** situation, investors should pay attention to observing the flow of funds in the market. If the volume occurs at the bottom, it means that there is a strong capital intervention in the market, and you can consider entering the market at this time. However, investors need to pay attention to the fact that it is not to enter the market immediately as soon as there is a large volume, but to enter the market on the premise that the adjustment range is not lower than the low point before the volume. This is because once the adjustment is lower than the cost of opening a position, the market selling pressure increases, and the possibility of a readjustment in the future is higher.
2.Operational strategy of shrinkage: In the case of shrinkage, investors should pay attention to the confirmation and continuity of the market. Under normal circumstances, when encountering shrinkage**, you should be decisively out, and when the shrinkage degree reaches a certain level, and you can consider re-entering the market when you start to increase the volume. The basic idea is to follow up when the amount is reduced, and when there is a huge amount of weakness, it will be thrown.
1.Case analysis of large-scale **: Taking **A as an example, after experiencing continuous **, **A has a situation of large-scale ** on a certain day. This indicates that the strength of the market funds began to intervene in the **. The phenomenon of large volume and ** at a relatively low level will form a technical pattern of double bottom or round bottom, which is a signal that investors can consider entering the market.
2.Case analysis of shrinkage: Take B as an example, after continuous shrinkage, B begins to shrink. This shows that the market's view of the ** is unanimous, either it is bearish on the market outlook and only people are selling and no one is entering, or it is optimistic about the market outlook and only people are entering and no one is selling. Drawdown** generally occurs in the middle of a stock price movement, and investors can re-enter the market after the stock price ** reaches a certain level.
In addition to volume increase** and volume reduction**, investors can also use other technical indicators to assist in judging market trends and making decisions. For example, the Boll indicator can be used to determine whether the stock price is in the middle of the Bollinger Bands by observing whether the stock price is able to break through the middle band of the Bollinger Bands to determine the time to sell. In addition, 20-day trading is also widely used, and investors can combine the trend of 20-day and changes to determine the timing of selling or selling.
To sum up, investing is not only a game about how to measure the odds, but also requires a certain amount of skill, risk control and money management, discipline, and a certain amount of luck. Large-scale and small-scale is a situation that investors often encounter in the A** market, and by observing the changes in trading volume, you can judge the views of the forces in the market on **, and assist investors in making decisions about ** or selling. In addition, other technical indicators and trading opportunities can also assist investors in judging the market and trading timing. The accumulation of experience and continuous learning are also one of the key factors for investors to improve their investment capabilities. In the investment process, it is very important to keep a cool head and make reasonable decisions, and always maintain a cautious and rational attitude.