Category: Money Tips Date: 2006-05-13
Supply and demand, economic, political and other basic factors, is undoubtedly the main reason affecting the stock price. But in the end, decided to ebb and flow of power or from the market's own trading activities. Lee then hit multi-factor, if you do not intervene in the market, market conditions will not spiraling; be a major bad news, if not into selling, the price will be no collapse. The buying and selling of the size of the price change takes place through the daily turnover rate can be reflected. Volume and price analysis, in essence, power and direction of analysis; volume is the driving force is the direction of price movements.
According to the general principles of volume and price analysis, price rise, while the volume surge, "Many hands make light," said the upward trend in the ascendant; price is still up, but the volume gradually reduced upward trend has come to mean a "highbrow" the point of This is a big city, a sign back; the other hand, prices fell, while the volume surge, "to push everyone down the wall", show a downward trend since the beginning of FY; prices extended losses, but volume is less and less, reflecting the decline in has almost no one would dare, this is the largest city of the U-turn signal. Market Like a car, or to "good" or to "light", in both directions, one or the other. While the volume increases, like the throttle, vehicle speed will naturally move in a certain direction; the other hand, volume reduction, equivalent to close a small throttle, even if the car is still there is inertia forward setting, will eventually be stopped, turned around to the other one direction go through.
Trend, and there is no subjective "top" or "bottom." The so-called "top" and "bottom" is determined by market trading activities, the objective formation. The so-called "bottom" is determined by the overall confidence of investors, which is popular decision. If the price movements create a "high price" and another volume record for a "quantity", then shows a large number of investors enter the market and the strong bullish market outlook, "always other able men", "high price" must soon be refreshed.
Volume and price analysis can not be a simple contrast to today and yesterday, so that can not see continuity. The need for the past week, month, three months of the interaction volume and price information for a detailed assessment of price changes from quantity to look at its past, present, combined with its past and present analysis of its future. At the same time be clear: the increase or decrease the volume does not change the direction of price fluctuations, but only to exacerbate or mitigate the price rise and fall. Since each transaction, including buying and selling, trading volume is to buy lease or sell the number of deeds. Large volume does not mean the person to buy or sell more people. Rise is only stating that the buyer is willing to take high-priced deal, the downtrend is representing the seller is willing to take low-cost deal. Motivation and direction are two different things, not be confused, and only this way, volume and price analysis will forecast the market outlook for our right to bring a constructive inspiration.
