Category: Money tips Release Date: 2006-04-09
Proposed volume analysis is an important aspect of technical analysis stock market, investors in analyzing the price trends change from time to time to volume as an important basis for analyzing and concluded 'the amount of price rise throughout the growing rate of reduction the amount of slow down', 'days, the amount of astronomical, to the amount of land 'rule.
Technical analysis often through changes in trading volume to study the broader market index trends in, trying to find the effectiveness of the relationship between volume and stock indexes, especially the top and bottom when the stock index variation of the amount paid. As the market's ever-changing flow of city, and even (a respect due to expansion, and partly because stock prices go up or down to increase or decrease in market value), with daily turnover (turnover) this absolute value to study the dynamics of the stock market continued to grow there is clearly inadequate, while the broader market turnover ( Turnover / float market capitalization) This relative index is the effectiveness of traffic analysis will help to find some regularities things to a certain extent, compensate for the absolute value of analyzing the effectiveness of the amount of defects.
Research methods used to study the turnover rate movements in stock prices has long been widely used, but the process of analyzing the prices of individual stocks, due to the presence of the dealer, the amount of stocks often a result of the effectiveness of the dealer's right down disk or disk appears abandoned true to enlarge or narrowing, of which interfere with people's capacity to find value the relationship, so with the Stock turnover (volume / flow of capital stock) to study the movements in stock prices there are some limitations. but if you use tape to study the turnover index changes much less vigorous in the above-mentioned limitations, as broader market is the market a collection of a variety of forces, or the broader market is largely run according to its own laws, the stocks of non-systemic factors that impact on the broader market rather than changing its market's operating mode. because the tape volume be able to compare a true reflection of the amount of stock prices with the relationship.
Information to prepare this data acquisition time for 99 years, January 1 to February 16, 2000, the basic data for the Shanghai Index and Shenzhen Index and the flow of single-day turnover in the market value in order to turnover divided by market value to calculate the flow of a single tape Japanese stock exchange rate, and compare the broad market closing index.
Conclusions: (a). Broader market turnover and the close relationship between the index of all follow the 'Jiashengliangzeng, the amount of deceleration rate of reduction', 'days, the amount of astronomical, to the amount of land' of the law were as follows: Shenzhen and Shanghai broader market, when the change hand, when the rate is below 1% suggesting the broad market in a low, contracted volume of transactions, the investors can buy shares in batches; when the turnover rate of 6% -8 & when suggesting the broad market at a relatively high turnover of hot, the main Shenglang may have been closer to the top department, investors can throw the stock in batches; when the turnover rate of more than 8% of investors should be firmly leave.
(Ii). Broader market turnover and the close relationship between the index also follow the 'price of the first volume of' rule. '5 * 19 'Quotes broader market turnover peaks in the June 25 (10.36%), closing index peak at 6 29 (1739 points), both with a difference of two trading days better..
From actual experience, the significance of broader market turnover mainly to the tape the top of the judged, because in the broad market correction and a decline during the turnover tend to remain at a relatively low level, a slight change in turnover insufficient to prompt the bottom of the appear, and when the tape at the rising stage, the volume is constantly enlarged, a large number of tape at the top there is often an important basis for judgments, but because of broader market-float market capitalization continues to expand, the absolute value of the amount of days is also changing, and therefore turnover with a relatively broad market index could show an advantage.
