The world is vast, and I am small. Follow me to avoid getting lost.
99% of retail investors do not understand why the trading volume is getting worse now; it's because quantitative trading has become so rampant. We all know that for a group of people to sit together and play a game, the most basic requirement is fairness. In this market, we have neither an information advantage nor a capital advantage, and even our understanding is uneven, which already puts us at an absolute disadvantage. Now, trading has actually started to use quantitative methods and AI to continuously harvest the market's liquidity. So, now everyone knows why the trading volume is getting smaller. What is trading volume? Trading volume is liquidity. So, what is liquidity? We are liquidity. Therefore, there is only one truth in the trading market: during a bear market, regardless of one's status, everyone gets trapped, but during a bull market, it's different. Those who enter with dreams do not realize that they are just meat on someone else's plate. This market has never been a place for good-hearted people to make wishes; it is a place that does not spare bones. To survive, one must arm oneself from a cognitive level and become a master. Otherwise, in the long run, there is only a dead end.
When it comes to trading volume, everyone just needs to remember one thing: an increase in volume will change the direction. If a stock is consolidating and starts to break out, then its increase in volume is valid. Just like Musk's rocket, it needs enough thrust to leave Earth for Mars. Only when this thrust is large enough can it escape Earth's gravity. Here, the thrust is the increase in volume, and once the price breaks out, there is no need for a large volume anymore. So, an increase in volume will change the status quo. This low-volume increase indicates that a bottom is stabilizing, while when a platform breaks out with increased volume, it signifies a main upward trend, and when there is an increase in volume at a high level, it usually indicates a peak.