Capital Fengshi: An Old Stock Civilian20Years of experience tell you the traps of trading volume

The Trap of Trading Volume(one)

  

The size of trading volume can measure the activity level of stock market or individual stock trading, and observe and understand the situation of the main force of buyers and sellers entering or exiting the market. Experienced stock investors often use the trading volume of the entire market or individual stocks as a prerequisite for measuring and observing market trends, and look for the movements of major institutions or stocks, choosing opportunities to enter or exit the market.

The classic theory of stock market investment or speculation assumes that trading volume is not deceptive. The size of trading volume is directly proportional to the rise or fall of stock prices, which can be summarized in detail.

1Only by increasing the quantity can the price rise

2If the trading volume shrinks, the stock price will not fall significantly

3When stocks that have been consolidating for a long time break through the market trend and rise upwards with volume,It means the banker needs to raise the price

4After the stock price reaches a high level, it will definitely reach a new high.

How the banker sets traps in terms of transaction volume,How should small and medium-sized investors be prepared?

Trap 1:

After a long period of trading, there was a sudden breakthrough in volume. The term long-term consolidation here sometimes refers to the high consolidation of stock prices after a significant increase in speculation,Some are consolidation after speculation and stock allocation after ex rights,There is also consolidation shortly before the announcement of the interim or annual report. The so-called consolidation refers to a period of time (such as two or three months),Even within six months, stocks fluctuate within a relatively narrow price range,Ascending powerlessness,Infinite decline,Trading is extremely inactive,Not being noticed by market professionals. This type of stock may sometimes be found with a large number of buy or sell orders after the opening on a certain day,Create an upward stretching frame. Within half an hour to one hour after opening,A large number of single-layer stacked seals are purchased and hung at the price points of buy one, buy two, and buy three,same,Sales orders are also heavily displayed at various prices ranging from selling one to selling three.

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The transaction volume has sharply increased,Drive up stock prices. Investors will immediately notice abnormal changes in its trading volume,Many people even tentatively buy.

But due to the already packed bill,To ensure a successful transaction,You can only buy directly at the market selling price. It is precisely because of the increasing number of people buying in this market,Despite the heavy weight of selling orders,The stock price will continue to rise,Further enhanced confidence in buying,And the stock will break through the market trend with an increase in volume,Embark on a new round of upward trend. About an hour,The stock price may soar to8%Left and right,Some even temporarily closed the limit up with a large amount of buying. But soon after, it was hit by a large number of orders and hit the limit up again,Callback to increase7-8%Consolidate left and right. There are many hanging orders for buying two or three during consolidation,There are relatively fewer hanging orders for buying one. But there aren't many sales orders for the three price ranges of selling one to selling three,However, the transaction volume is quite high,Obviously, there is a selling offer being offered at the market price of Buyi. Until the close of the day,Most stocks are in the7-8%Transactions were made in the area of price increase. the next day,The stock may open slightly lower,Then quickly push up,Up to5-7%One area. Some might as well just drive high and walk high,There is a framework that forms a breakthrough gap. When many people see the stock breaking through the market and chasing a rise,The stock is rising to5-7%The left and right will suddenly turn around and fall,A large number of orders are being sold to small and medium-sized retail investors who have been chasing gains by placing orders in the morning but have not closed yet. Although it will continue to rise repeatedly afterwards,But the proactive payment for the upward trend has decreased,And the downward throwing of orders keeps going on,The stock price is gradually declining,Even fell below the closing price of the day before yesterday half an hour before the market closed. The following days,The trading volume of this stock has shrunk,The stock price quickly fell below the previous starting point,And it has been a continuous decline. If investors do not stop losses in a timely manner,The stock price will accelerate its decline,Falling to an unbelievable level,Deeply trap investors.

Study it carefully,Why does the stock turn back and down when suddenly breaking through with higher volume,Even accelerating the decline?This is the trap set by the banker using transaction volume. The usual situation is,After a long period of trading, the banker knew that a forced attack would not be effective,If the long-term consolidation continues and there is no way to find a bullish theme,Even potential bearish news has been known by the market makers. In order to escape quickly,After a long period of trading, the banker,Adopting the method of rolling one's own chips,Causing the illusion of increased trading volume,Attract the attention of short-term speculators,Inducing people to blindly follow up. At this point,The banker only rolled his own stock during startup,In the process of pushing up,Many price chasers have taken on a large number of sales orders from the banker. Those who did not buy stocks while chasing gains,And then the person who hung the bill there strengthened the buying power even more,And provided an opportunity for the banker to ship. This is how the banker utilizes the widely recognized principle of increasing quantity and price,Created a false impression,To achieve the purpose of shipment.

  It is not easy to be wary of this technology of deceiving cables,But it is worth noting that,Once the stock price falls below the opening price on the day of its volume rise,It should be a stop loss exit,To prevent major losses.   Exclusive planning and release by senior analyst Leung Yiu ho,VX:JL88884Having rich experience in real market operations, with a solid theoretical foundation and practical experience in this article, focusing on fund management and risk control, a stable and decisive operating style, reading ten thousand books is better than traveling ten thousand miles.