Many investors often think that the volume of transactions is not deceiving, the size of transactions and the fall in the share price is directly related, this view of the volume of price cooperation is sometimes correct, but in many cases is unilateral or even wrong. In fact, the volume of transactions can also deceive, and often become the best way to set traps, those who know a little about quantitative analysis but seem not to know will be addicted to a scam, many people are deeply affected by it.
The trend is gold, the so-called nickel sky price, the geographic price of nickel is only relative to a certain period, the specific content needs to look at its current state and the location, in order to really determine the possible future development trend. In the price movement, there are many situations of quantitative changes, the most difficult to determine is the boundary, how much to calculate the volume, how much to calculate the contraction, in fact there is no one law that can be followed, nor is there any absolute information about the truth of the four seas.
Moderate release refers to the sudden appearance of a continuous moderate release after a continuous downturn, similar to a monsoon-shaped monsoon, also known as a monsoon stack. The phenomenon of a monsoon stack at the bottom of a stock generally proves that strong capital is involved, but this does not mean that investors can immediately intervene. Generally, after a moderate release at the bottom, the stock price will rise, and the stock price will adjust appropriately when the scale is reduced.
In general, the huge surge in the uptrend usually indicates that the forces of many parties have been exhausted, and it will be very difficult for the market to continue to rise, i.e. to see the sky rise and see the sky rise; while the huge surge in the downtrend is generally the last concentration of airborne forces, the probability of the stock price continuing to fall deeply is small, and the possibility of a short-term rebound is in sight, i.e. the bear market sees the bottom in fear.
Many people have a perception that the rise of the stock price must be accompanied by quantitative power, if the price pressure increases, then the upward momentum is sufficient, and the stock price will continue to rise; on the contrary, if the shrinkage increases, it is considered empty, the quantity of the price is not ideal, predicting that the stock price will not have a greater room for increase or difficult to continue to rise. In fact, the specific situation needs to be specifically analyzed, the typical phenomenon is that the rise in the beginning of the rise requires price support, after a period of rise, it is different.
The stock price in the process of falling is not a normal phenomenon, firstly, there is no catch, can not be thrown out, secondly, the effect of the sell-off no one is willing to cut the meat. Therefore, the shrinkage of the falling stock should look at the rate, fast shrinkage is good, otherwise it may be endlessly. In real life, there is often a phenomenon of a lot of falling and falling day by day, only after the panic drop, the mass will be stabilized again. In fact, it shows that the mass drop in the market is also large, which is a good thing, especially at the end of the fall, indicating that someone has started to grab a rebound.
This post was originally published on Oct. 15, 2015.