Shrinking and scaling are the two concepts used to measure the change in trading volume. Specifically:
Drawdown: It means that the trading volume of ** has decreased compared to before. This may be due to the reduced enthusiasm of market participants, or the market has entered a wait-and-see period after a period of stock price ups and downs, and investors are waiting for a clear signal. Drawdown is also sometimes seen as a harbinger of a market turnaround, as when a move is accompanied by a lower volume, it can mean that the momentum of the current trend is weakened.
Volume: It is a significant increase in trading volume. Volume increases usually occur at an important turning point in the stock price, which may be new information or a change in market sentiment that leads to a large number of buy and sell transactions. If the stock price rises when the volume increases, then this is usually seen as a confirmation of the trend, because it shows that more and more investors are willing to buy stocks. Conversely, if the stock price is falling in volume, it may mean that the selling pressure increases, and the stock price may continue to fall.
When analyzing, it is necessary to pay attention to other factors, such as stock price trends, market fundamentals, technical indicators, etc. For example, if the stock price increases in the process of increasing the volume, and shrinks the volume when the stock price rises, then this is usually regarded as a signal that the stock price will still be the best. On the other hand, if the volume shrinks when it rises, and the volume increases when it rises, it may be a sign that the stock price is going to be the best.
Tips: Volume is only one of the analytical tools and cannot provide buy and sell signals on its own. The analysis should be combined with other technical analysis tools and market information. At the same time, changes in trading volume may also be affected by the overall activity of the market, so it depends on the volume level of the entire market.
To sum up, by observing and analyzing changes in trading volume, investors can better understand market dynamics and make informed investment decisions. But this also requires investors to have a certain amount of experience and understanding of market rules. When learning these concepts, it is recommended to practice with real cases and historical data to improve the accuracy of the analysis.