There is a significant difference between shrinkage and scale-up. The following is an in-depth analysis from six aspects:
1.Meaning:
Drawdown** refers to the share price** and at the same time the volume decreases. This usually means that investors are not reacting strongly to the market, or they have lost confidence in the market.
Volume ** refers to the stock price**, but at the same time the volume increases significantly. This indicates that investors are selling**, but this selling behavior is divided, and it also means that someone is selling aggressively, which may be caused by the shipment of main funds.
2.Investor psychology
Investors may be confused or disappointed when scalping**, as a downturn in trading volume can indicate a lack of market dynamism and a low level of investor acceptance of the current share price.
Investors may feel panic or upset when trading volumes**, as an increase in trading volume usually means that there is more bearish power in the market and the stock price is likely to continue**.
3.Market movements
Drawdown** may occur at the beginning, end, or early stages of the stock price. At this stage, investors may not have fully recognized the changes in the market, or they are waiting for better opportunities.
Volume** may appear in the middle of **, consolidation or **end. At this stage, the divergence among investors grows, with some choosing to sell to avoid further losses, while others opting for low chips.
4.Outlook for the market
Shrinkage may be temporary, indicating that the market may be about to stabilize and appear. If there is a shrinkage in the initial stage, it may be caused by the main capital shuffle to accumulate energy for the follow-up.
The volume increase may indicate that the bears in the market are still strong and the stock price may continue**. Especially at the end of a bull market or a phased bull market, due to the large number of profit-taking orders, there will often be a continuous decline after the volume increase.
5.Coping strategies
a.In a shrinking market, investors can take a cautious strategy, observe the market trend, and wait for a clear signal to appear. When the stock price is just starting or in the early stages, investors can choose to hold or hold.
b.In a high-volume** market, investors need to be more cautious. If this is the case at the end of a bull market or a phased bull market, investors can choose to reduce or liquidate their positions to avoid possible losses. In other cases, investors can watch the market movements and look for clearer signals to decide** or sell.
6.Main intent
Whether it is shrinking or increasing, it may be the result of the operation of the main funds. In the case of shrinkage**, the main funds may be shuffling or suppressing the stock price to attract chips; In the case of large volumes, the main funds may be shipping or forcing ** to hand over their chips.
To sum up, there is a significant difference between shrinkage and scale-up. Investors need to carefully observe market movements and volume changes to better understand the true intentions of the market and make informed investment decisions.