What Is Trading Down?

The so-called heavy volume refers to the surge in trading volume. For example, the daily daily trading volume is several million hands, and suddenly the daily trading volume reaches tens of millions of hands. This is called heavy volume. At the same time as the stock price fell, the turnover rate increased, accompanied by the increase in trading volume (compared with the previous few trading days).

Heavy volume drop

The so-called heavy volume means

In simple terms, at the same time as the stock price falls,

A heavy volume decline is a plunge, indicating that the downward momentum is strong. Generally, there will be heavy volume declines when major negative news appears. In fact, it is sometimes an irrational selling behavior. When the plunge is too large, it can grab a rebound.

In the operation, it is often found that some stocks have changed their movements. For example, the transaction volume suddenly doubled, and a large number of hands were changed in the short term. The intention of the main force should be judged by comprehensive information. Sometimes it belongs to the main ship and sometimes it belongs to the main trade , Investors can judge according to the position where the heavy volume appears, the shape of the K line, and so on:

1. "Large volume stagnation" is an ominous sign. If a large number of transactions are released, the stock price is still in place. Usually, the main force will attract the trend follower, indicating that the main force has decided, and the outlook is not optimistic.

2. During the decline, heavy volume was collected and Xiaoyang was continuously collected. Beware of the main force building a false bottom. After falling below the false bottom, it is often the beginning of a new round of decline.

3, high volume fell, this is a reliable signal of weak stock prices, investors should stop losses in a timely manner.