The Significance of Trading Volume When Stock Prices Rising!

When a stock price rises, investors may feel inclined to purchase it but are concerned about buying at a high price. However, their hesitation could lead to missed opportunities and potential gains.

To assist with timing trades, today Cici will share a useful technical strategy — trading volume strategy. Trading volume strategy considers changes in trading volume alongside stock price movements to provide insights into market trends.

1. When the stock price rises, if the trading volume suddenly spikes but then quickly falls back, it indicates a decrease in buying power, which may lead to some pressure in the future market.

2. When the stock price rises while the trading volume remains stable, it indicates the buying and selling powers are balanced.

3. When the stock price rises while the trading volume increases gradually, it indicates increasing buying power and a stronger trend in the future.

However, we should also note that trading volume is just one of many technical indicators. Combining various technical tools could help us make better investment decisions.

What do you think about the relationship between stock prices and trading volume? Feel free to share your thoughts and experiences in the comment sections!