Trend Following Strategy of "Volume Ladder" for High-Level K-Line (Trend Judgment)
In a trending market, if the trading volume shows a "ladder-like increase or decrease", the direction is very reliable:
Uptrend: Each wave of rising volume is higher than the previous wave.
During pullbacks, the volume is low, showing a ladder-like decrease.
Strategy: Enter the market in the direction of the trend during the pullback at the lower level of the ladder + on reduced volume (going long in an uptrend, going short in a downtrend). Stop-loss is placed at the "lower edge of the previous step" of the ladder's ascent/descent. Volume-Price Logic:
A high-level "volume ladder" indicates a healthy trend structure and strong sustainability.