In the process of investing in the stock marketPlayingbaccaratonlineIdentifying the main behavior is of great significance to the decision-making of investors. By analyzing the volume and price changes of stocks, investors can gain insight into the intention of the main funds and make more informed investment decisions. This paper will sort out the relationship between volume and price changes and the main behavior, and provide some practical analysis skills to help investors improve their investment skills.
Principle of quantity and pricePlayingbaccaratonlineFirst of all, we need to understand the volume-price principle, that is, the relationship between trading volume and stock price changes. There is an accepted principle in the stock market: if the price rise is accompanied by the magnification of the trading volume, it indicates that the buying is positive and the future is bullish; on the contrary, if the price fall is accompanied by the magnification of the trading volume, it shows that the selling is more than the buying, and is bearish in the future.
Magnification and reduction of trading volume: when the stock price changes, we need to pay attention to the change of trading volume. If the trading volume is significantly enlarged when the price rises, it may be a sign that the main funds are entering the market. On the other hand, if the trading volume is enlarged when the price falls, it may be the main capital flight.
Observe the relationship between trading volume and price: investors should pay close attention to the relationship between stock trading volume and price. If prices begin to rise after a period of consolidation, accompanied by an increase in trading volume, this is usually seen as a positive sign. And when the trading volume begins to decline after the price reaches a certain stage of high, even if the price is still rising, we should be aware that this may be a signal that the main funds are pulling up.
Use technical chart analysis: technical chart is an important tool to analyze the relationship between quantity and price. For example, investors can use the volume bar chart and K chart to observe the impact of volume and price changes on the trend. When there is a breakthrough in the price trend in the K chart, if the trading volume bar chart also shows a significant increase, this is usually regarded as a more credible breakthrough signal.
Analysis volume ratio index: volume ratio is an index to measure the change of trading volume, and the formula is the ratio of daily trading volume to the average trading volume in the past period of time. An increase in the volume ratio usually means an increase in activity, which may indicate the trend of the main funds. Investors can combine volume ratio with stock price changes to identify the main force behavior.
Chip distribution analysis: the chip distribution map can show the profits and losses of stocks in different price ranges, and help investors to judge the degree of main control. If the chips are concentrated in the lower price range, and the stock price has not moved up after a period of rise, it may mean that the main force has a strong ability to control the market in that price range.
Comprehensive analysis: identifying the main behavior requires investors to comprehensively use a variety of analysis tools and methods. In addition to paying attention to volume and price changes, we should also combine fundamental analysis, market sentiment, macroeconomic and other factors to form a more comprehensive and in-depth market judgment.
Conclusion: the change of stock volume and price is an important clue to identify the behavior of the main force, but investors should also be careful when applying these techniques to avoid being disturbed by market noise. Through the in-depth analysis of the relationship between volume and price, technical indicators, chip distribution and other dimensions, investors can more accurately grasp the pulse of the market, thus achieving success in stock investment.