Trading volume and price(2)
Don’t be happy about a rise without trading volume, and don’t be sad about a decline with no trading volume. (The photo above is from Beat in 2018.)
● A rise without trading volume is dangerous.
1.By using divergence, which I will explain later, you can find many daily highs.
2.However, there are cases where divergence cannot be found, but this can be found by looking at the trading volume.
3.In other words, even if there is no downward divergence, if supply and demand are insufficient, the market price will inevitably fall.
4.In the picture below, you can see that the trading volume decreases and increases before the decline continues. However, the high point cannot be found based on this alone; it must be viewed comprehensively.
5.Trading volume is necessary for the completion of patterns and must also be examined in wave theory.
● The trading volume the next day after a pole bee peak is important.
1.When a positive candle appears on a chart, the trading volume on the negative candle after the positive candle is very important. This is to guess whether the force or buying entity that entered the candle is still in this stock or has already sold and exited.
● After a long candle, the trading volume of the black candle is smaller than that of the candle. = The force has arrived!
● After a long candle, the trading volume of the black candle is larger than that of the candle. = The forces are out!
2.You can think of it this way, but it’s not always like that.