When the bottom of the trading volume appears, the bottom of the stock price often appears. The judgment of the bottom of the trading volume is based on the past bottom as the standard. When the stock price falls from the high to the bottom, the trading volume gradually decreases to the average of the past bottom , The stock price touched the chassis and no longer fell. After that, the stock price showed a market stall, and the trading volume also shrank to the limit. There was a trend of price stability and volume shrinking. This phenomenon is the bottom of the market. The important form of the bottom is the increasing amplitude of the stock price fluctuations. After that, if the trading volume has been shrinking, the stock price will continue to trade until the trading volume gradually enlarges and the stock price is firm, and the price and volume match up before there is an upward impact. The increase in trading volume from shrinking represents the state of supply and demand. Change occurs. As shown in the figure below:
Stock price: high - down - consolidation - less volatility - slight rise - sharp rise
Volume: Huge volume - Decrease - Stable market - Extreme shrinkage - Increase - Huge increase
The phenomenon of volume changes from huge volume to decrease → steady → increase → huge increase, like an arc shape, this is the bottom of the arc. When the bottom of the arc of the volume appears, the stock price will reverse and rise. And its The rise and strength of the rebound are determined by the magnitude of the amplification of the trading volume after the bottom of the arc appears.If the number of amplification is extremely large, the stronger the rise will be.
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Figure 1.1: Volume bottom arc
The shrinking volume in the bottom area means that the floating chips have been greatly reduced, the stability of the chips is high, and the killing power is exhausted, so there is a phenomenon of price stability and volume shrinking, and then there is an increase in transaction volume, indicating that someone is eating, because if no one buys, Where to ship? So at this time the supply and demand forces of the chips have changed, and there is already an upside market. Stocks with bottomed volumes should be paid special attention. When a stock's decline gradually narrows, a gap and a decline gap appear, usually The trading volume will shrink extremely, and then the volume will increase and the price will rise. This is the time for the stock price to bottom out and rebound. However, when the trading volume bottoms out, people's emotions often bottom out. People who make money gradually withdraw and new ones enter the market. People are quilted one by one, so the willingness to enter the market is constantly weakening. If people's desire to buy stocks is lowest, but the stock price does not fall, it only means that people's willingness to sell stocks is also at the lowest state. This state is often the case. The characteristics of the bottom-building phase. The problem is that since the volume has shrunk to the extreme, it means that there are very few participants, which proves that there must be very, very few people who can actually copy to the bottom.
When the stock price is consolidating for a long time but can't fall anymore, some people begin to feel that this is the bottom, so they tentatively purchase goods, which causes a small increase in trading volume. Because the selling pressure is small, only a small amount of buying can be used. The stock price rises, which is the reason for the formation of the right half of the round bottom. If the stock price really starts to rise under the impetus of these tentative buying orders, it will inevitably arouse more people's desire to enter the market, and as a result, the trading volume will be further enlarged, and the stock price will also As the volume begins to rise, this phenomenon is like an avalanche, a continuous response.
As long as the stock price rises slightly, it can trigger more people to enter the market.Such a market has the potential to rise.If this phenomenon occurs after the extreme shrinkage of trading volume, then it fully proves that the stock price is bottoming.
When choosing stocks, you need to be patient, and it takes a while to build a bottom. People who buy at the bottom of the volume must have a lot of courage and confidence, but he may not necessarily have patience. The bottom of a stock that can make you big money is at least It should last for more than half a month, preferably a few months. May I ask who can have such patience to watch the stocks that they have bought for a few months? If you have such patience, then congratulations. This shows that You have the first basic conditions for making money in stocks. There are also some relatively conservative investors who are unwilling to wait too long at the bottom. They hope to make a decision after seeing the situation clearly. The right half of the arc is their entry into the market. Opportunities, especially when the trading volume is rapidly increasing as the stock price rises, they believe that the upward trend is set, so they have chased in. It is precisely because of the existence of this type of investors and the large number of people that they have formed a breakthrough after the breakthrough. Situation.
However, the author recommends that everyone be patient investors and buy at the bottom of the volume. In fact, this approach is truly conservative and safe. People who buy after the market is clear may be able to make money, but first, They can't make a lot of money, they just grabbed the middle section of the market; second, the risk they face is actually relatively large, because the price they bought is much higher than the bottom price. When they buy, Investors who buy at the bottom can already make a profit and leave the market at any time.In contrast, it is clear who is active and passive。