Friends who have been losing like me must read the following content!
Trading volume is the core of trading!
Trading volume surpasses all indicators. Have you seriously thought about or summarized the underlying logic of trading volume? Today, I spent several hours sorting out the logic of trading volume and suddenly realized that the signals I have been looking for are here—not moving averages, not MACD, and certainly not other random indicators, but the inconspicuous trading volume beneath the candlesticks.
Here’s a brief excerpt from today’s summary regarding the trading volume issue in the contract market. I believe that after reading, it will greatly help your trading.
In the contract market, a large bullish candlestick combined with high trading volume indicates that retail investors' short positions are continuously stopping out, creating a large amount of buying pressure, which drives prices to rise rapidly. At this time, the main force will take the opportunity to close long positions and sell. When a short candlestick appears with high trading volume, it indicates a balance between the buying volume from retail investors stopping out of their short positions and the selling volume from the main force closing long positions, causing the price to temporarily stagnate; a large bearish candlestick combined with high trading volume indicates that retail investors' long positions are continuously stopping out, resulting in a large amount of selling pressure, which causes prices to fall rapidly. At this time, the main force will take the opportunity to close short positions and buy. When a short candlestick appears with high trading volume, it represents a balance between the selling volume from retail investors stopping out of their long positions and the buying volume from the main force closing short positions, causing the price to temporarily stagnate. Whether rising or falling, the main force will repeatedly test the top to break through previous highs to stop out short positions, or repeatedly test the bottom to break through previous lows to stop out long positions, until the retail investors' position volume is relatively low before reversing.
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