![]() Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeline for any particular purpose of the above content. Returns will vary, and all investments carry risks, including loss of principal. Past investment performance does not indicate or guarantee future success. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Combining volume with price to analyze their relationship may help assess the current stock price level. Trading volume is an indicator least likely to be manipulated by major funds and can reflect true capital flows. A rally off the bottom is expected to occur. Falling price with rising volume is a bullish signal. When volume stops decreasing, and the price keeps going down, it indicates a long-term bearish signal. Decreasing volume in parallel with falling price indicates a bearish trend. If a large number of bullish or bearish candlesticks with a large body appear at this stage, whether the news is positive or negative, it'd be better to view it as a bearish signal. A bearish signal appears when volume falls dramatically, and price moves sideways after a significant increase. Declining volume and rising price indicate that the uptrend is ending. When volume remains relatively stable and the price keeps rising, the uptrend is stabilizing. Volume and price rising together presents a bullish signal for short and medium-term investments. If this occurs in a downtrend, it means that the downward momentum is weakening and a rebound is gathering strength whereas in an upward or sideways trend, it suggests the rebound is being hampered, yet the trend is likely to continue as long as it’s not clearly disrupted. ![]() Both statements are trying to predict future trends of the stock market based on different price-volume relationships. Investors often say that sky-high volume goes with sky-high price or rock-bottom volume goes with rock-bottom price. How to make use of price-volume relationship ![]() Such a relationship is called the price-volume relationship, a crucial indicator for investors to anticipate future trends. In the securities markets, there is a relationship between the rise/fall of a stock index or a stock and its trading volume during the same period. It mainly refers to the closing price, but may also refer to opening, high, and low prices. Price is the value of a stock index or the price of a single stock. The volume of a stock index is the total amount of money traded during an amount of time, while that of a single stock can refer to either the total number of shares transacted or the total amount of money traded. ![]() Volume is typically the trading volume of a stock index or a single stock during a given period of time, including the trading volume per minute, daily, monthly, or yearly. Price-volume relationship is a term used in the stock market. Price-Volume relationship can be interpreted in eight situations. ![]() The volume of a stock index generally refers to the total amount of money traded the volume of a single stock can refer to either the total number of shares transacted or the total amount of money traded.Price-Volume Relationship refers to the relationship between price and volume, which is a rather important indicator in the stock market. ![]()
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