There are three different meanings of trading volume under different trends:
1. Uptrend; the pullback, shrinkage or flat volume under the uptrend shows that large funds are reluctant to sell and have the motivation to continue to reach new highs. It is not a good sign to release huge amounts of money during a correction, especially when there is a certain increase, which often represents the beginning of a correction, indicating that there are large funds to ship at this position, and a correction is needed at least in the short term.
2. Downtrend; in the early stage of a downtrend, it is not a good thing to drop and increase volume. A drop in volume shows that the main funds are not optimistic about the currency they hold, which is usually the beginning of opening up the downward space. After falling for a period of time, both increased volume and reduced volume are good things. Increased volume means that funds are starting to be optimistic and start to enter, while shrinking volume means that there are fewer and fewer selling orders, and there is no way to fall.
3. Shock trend; most of the trading volume in the shock trend is invalid, it depends on the trading volume over a period of time. Fluctuating at low levels and increasing volume is generally a sign of building a position, while fluctuating and increasing volume at high levels is generally a sign of shipments. When breaking through a shock trend, the success rate of increasing volume is very high, while the success rate of not increasing volume is very low. When the lower edge of the shock area is increased and the volume closes positive, it generally indicates that the correction is in place and the upward attack begins. When the volume is increased and the price closes negative and falls below the lower edge, it generally indicates that it is the beginning of another decline.
