When to buy and sell stocks, look at the trading volume!
The relationship between volume and price is an important indicator, which can be used for buying and selling in band operations. It is a kind of technical judgment and the most critical indicator. Because short-term volume and price can deceive people, long-term volume and price relationship is difficult to make. You can ignore the market and focus on individual stocks.
Before the army moves, food and grass come first. Regarding trading volume, it has always been considered as the "food and grass" of the investment market, and the price is the manifestation after trading volume. Volume and price are the foundation of the technical aspect.
What are the main characteristics of good stocks?
1. Stocks with small buying volume, large selling volume, and no stock price drop
It means that this stock is in the late stage of the dealer's collection or the early stage of the pull-up. The stock price does not fall because of the dealer's invisible buying (the dealer's buying and selling orders displayed on the disk are usually fake and used to deceive people, and the purposeful buying and selling are usually timely and invisible). Such stocks may rise sharply at any time and break away from the dealer's cost price. The dealer of such stocks is usually a major force and has strong confidence in controlling the movement of stock prices.
2. Stocks with small buying and selling volumes and slight price increases
After the banker has finished eating up the stocks, the main task is to increase the stock price and increase profits. The above state is the best opportunity for the banker to raise the stock price, with small investment and great effect.
3. Stocks that break through the upper important trend line such as the highest price with large volume, this move is a typical strong banker behavior.
4. Stocks that rose sharply the day before and continued to rise strongly the next day
5. Stocks that rose slightly when the market was sideways, but strengthened their upward trend when the market went down
This situation is that the banker of the stock is strong and in the middle of the collection period. The cost price is usually near the latest price. The decline of the market is just an opportunity for them to speed up the execution of the scheduled plan and show their strength.
6. When a stock is empty and has a large volume but does not fall, it should fall but does not fall. There must be a big rise. This is the only choice for the market makers of such stocks.
7. Stocks that rise slightly regularly and for a long time. There are two types of market makers for such stocks. One is computer operation, and the other is that the trader has no decision-making power and must act according to the plans and instructions of others. However, the stock trend usually rises for a long time, and in the final stage, there must be a big positive line.
8. Stocks that fall sharply without volume are good ultra-short-term stocks.
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74231412 : Someone please explain this to me in simper English 🥹
MatthewLee369 74231412 : Follow your heart
RandomTrader_ 74231412 : In Layman’s terms:
Buy stocks that have more people trading it, e.g $Meta Platforms (META.US)$ $NVIDIA (NVDA.US)$ $Spotify Technology (SPOT.US)$ since higher volume= lesser volatility & less price fluctuations
Stocks that have smaller volume are more susceptible to changes in environment or manipulation & price might change a lot in a split second.
Big volume stocks good for long term investing. Small volume stocks (penny stocks) for swinging.
74231412 : Thank you so much English is not my first language
RandomTrader_ 74231412 : You’re welcome. Glad to help out a buddy. Good luck in the game if you’re new to the scene.
104583109 RandomTrader_ : awesome explanation, thanks!