The four basic elements of naked K trading (also involving some high-frequency flow trading)
This article explains the relationship between volume and price, key positions, Dow Theory, trend lines and other related applications. Some concepts in this article may be repeated with previous ones, but there will also be some differences, so you can read them together.
Lesson 1: The relationship between quantity and price and the application of key positions🔻
1. Relationship between quantity and price
1. Trading volume increases↑, holdings increase↑, prices rise↑
(1) Bulls are stronger than bears, and the probability of price continuation is higher
2. Trading volume increases↑, holdings decrease↓, prices rise↑
(1) Long positions are all being closed, and prices may fall at any time
3. Volume decreases↓, open interest decreases↓, price increases↑