- Price increase accompanied by volume increase: When the stock price rises and trading volume expands, it indicates a high level of market interest in the stock. The upward trend is likely to continue, which is a relatively positive signal; one may choose to hold or consider buying.
- Shrinking price decline: The stock price is falling but the trading volume is decreasing, indicating that the selling power has weakened, if the stock price is already at a relatively low level, it may be a sign that the downtrend is about to slow down, and you can pay attention to whether there will be a reversal.
- Price increase with decreasing volume: The stock price rises but the trading volume gradually shrinks, forming a divergence between price and volume. At this point, one should be wary of a potential price correction and consider reducing their position.
- Price drop with increased volume: When the stock price declines while the trading volume expands, it may be caused by panic selling, indicating that the market could further decline in the short term. However, if this occurs at a low point after a long-term price drop, it may indicate that some investors are taking the opportunity to accumulate shares. It is necessary to consider other factors to determine whether this is a bottom reversal signal.
Reference Average Line
- Bullish Alignment of Moving Averages: When the short-term moving average is above the long-term moving average, and the overall moving average is in an upward trend, it forms a bullish alignment, indicating that the trading volume is on the rise, and the stock price will maintain an upward trend. Investors can buy or continue to hold.
- Bearish Arrangement of Average Volume Lines: The short-term average volume line is below the long-term average volume line, and the overall average volume line is trending downward, indicating a bearish arrangement, which means that trading volume is decreasing, and stock prices will continue to decline, suggesting that investors should exit or hold their positions in wait.
- Golden Cross and Death Cross: A golden cross occurs when the short-term moving average crosses above the long-term moving average, confirming a trend reversal to the upside; a death cross occurs when the short-term moving average crosses below the long-term moving average, confirming a trend reversal to the downside.
Pay attention to special trading volume patterns
- Volume: Generally occurs at turning points of stock trends. If a massive volume appears at the bottom, the chance of a market turning point is greater; if it appears at the top, it may be a signal of a market peak.
- Low volume: Usually occurs during a phase of the lowest trading volume after a prolonged decline in stock prices or long-term consolidation at the bottom, indicating that the trading enthusiasm for the stock has dwindled to an extreme within a short period, often signaling that a reversal in the market may be imminent.
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#成长值抽奖,赢 iPhone 16 和精美周边 The usage of VOL in Candlestick is as follows:
Observe the relationship between volume and price
- Price increase accompanied by volume increase: When the stock price rises and trading volume expands, it indicates a high level of market interest in the stock. The upward trend is likely to continue, which is a relatively positive signal; one may choose to hold or consider buying.
- Shrinking price decline: The stock price is falling but the trading volume is decreasing, indicating that the selling power has weakened, if the stock price is already at a relatively low level, it may be a sign that the downtrend is about to slow down, and you can pay attention to whether there will be a reversal.
- Price increase with decreasing volume: The stock price rises but the trading volume gradually shrinks, forming a divergence between price and volume. At this point, one should be wary of a potential price correction and consider reducing their position.
- Price drop with increased volume: When the stock price declines while the trading volume expands, it may be caused by panic selling, indicating that the market could further decline in the short term. However, if this occurs at a low point after a long-term price drop, it may indicate that some investors are taking the opportunity to accumulate shares. It is necessary to consider other factors to determine whether this is a bottom reversal signal.
Reference Average Line
- Bullish Alignment of Moving Averages: When the short-term moving average is above the long-term moving average, and the overall moving average is in an upward trend, it forms a bullish alignment, indicating that the trading volume is on the rise, and the stock price will maintain an upward trend. Investors can buy or continue to hold.
- Bearish Arrangement of Average Volume Lines: The short-term average volume line is below the long-term average volume line, and the overall average volume line is trending downward, indicating a bearish arrangement, which means that trading volume is decreasing, and stock prices will continue to decline, suggesting that investors should exit or hold their positions in wait.
- Golden Cross and Death Cross: A golden cross occurs when the short-term moving average crosses above the long-term moving average, confirming a trend reversal to the upside; a death cross occurs when the short-term moving average crosses below the long-term moving average, confirming a trend reversal to the downside.
Pay attention to special trading volume patterns
- Volume: Generally occurs at turning points of stock trends. If a massive volume appears at the bottom, the chance of a market turning point is greater; if it appears at the top, it may be a signal of a market peak.
- Low volume: Usually occurs during a phase of the lowest trading volume after a prolonged decline in stock prices or long-term consolidation at the bottom, indicating that the trading enthusiasm for the stock has dwindled to an extreme within a short period, often signaling that a reversal in the market may be imminent.