Trading volume is the real data to look at

When we are trading, we often look at some indicators such as MACD, KDJ, RSI, etc., but the most important thing to look at is trading volume because it is built up with real money and cannot be deceived.

Compared to other technical indicators, trading volume directly records the real transactions in the market and is one of the most reliable references.

In simple terms, trading volume is the quantity of buy and sell transactions over a period of time, directly reflecting market enthusiasm and capital attitude.

An increase in trading volume is like a crowded market; either people are very optimistic and rushing to buy, or there is extreme panic and they are rushing to sell.

Price increase with volume increase is a healthy signal, indicating that the rise is supported by funds, while price increase with volume decrease should be taken with caution, as it may indicate profit-taking. Price decrease with volume increase indicates a surge of panic selling, and the decline has not yet reached its limit; price decrease with volume decrease often signals weakening selling pressure, and a rebound is near.

The key to trading volume is to look at the changes, and it should be analyzed in conjunction with the price position and trend for a comprehensive judgment. Remember the four phrases: Hold on with no volume at high positions, run fast with volume at high positions, wait with no volume at low positions, and follow up with volume at low positions.

Trading volume is important, but it should also be analyzed together with price, moving averages, and other indicators; only in this way can the accuracy be higher.