Category: Money tips Release Date: 2006-08-20
In theory, the stock turnover reflected the attractiveness of the stock market. But in any case, this is a relative process, as the price of the stock in different regions, promising the number of people and the pessimists will have changed.
If the market now have 100 people involved in the transaction, a stock price of 5 yuan, we might have 80 individual good, only 20 people that will go down; When these 80 individuals to buy later, causing price increases, another example this time to 10 yuan, a part of the 100 individuals who will produce change in thinking, initially bought 80 people, there may be 30 people think that prices will not continue to rise, so will sell the stock, and that put 20 people (or Other off-site people), there may be 10 to change the point of view or re-acquainted with the stock that the price rise.
At this time, the price produced a momentary imbalance: 30 were sold, bought only 20 people and lower prices. Suppose the price falls to 7 yuan, and just as optimistic about the number of underweight may change again, and decided to further the trend. Most people have a mistaken view: the greater the turnover of the stock, the price may be more up. To know, for any one to buy those, there must be a corresponding sell, no matter at any price, are true.
At a price area, if the volume of an unusually enlarged only show in the region have very large differences, such as the 50 people call, 50 people put; if the volume is very light, then there are differences between people who have little or People have no interest in a particular stock, such as the five individuals bullish, bearish five individuals, 90 individuals indifferent or wait and see. That analysis of volume changes, what investment will help?
First of all, from the volume change can be analyzed the stock market to attract a certain extent. Larger volume, indicating the more attractive, price volatility may be greater.
Secondly, from the volume changes, can analyze the pressure and support a stock price of the region: in a price area, if the volume of large, indicating that price region has a lot of pressure or support, the trend will be here to stop or produce reversal.
Third, from the changes in volume, you can observe the stock price out of the transaction-intensive orientation of the region: When the price out of the transaction-intensive areas, indicating differences in long-short to be a temporary unification, and if up to go, then the prices tend to rise in ; down the walk, you tend to fall.
Fourth, from the changes in volume, but also observe the price of stock turnover in different regions of the size of the relative value to determine trends in sustainability. With the stock price increases, volume should be presented ladder of weakening, in general, the stock (and the corresponding) price the higher the interest or courage to the people involved in (the corresponding) decrease. But this, from a turnover point of view, will be more concise.
Of course, based solely on volume, we can not determine price trends, and at least a price confirmation. Volume is an important factor in price changes, is also a change in the nature of the factors that may cause, but in most of the time, only act as a catalyst.
