#trade #smartmoney

Smart money uses three basic elements to interpret the market: price, trading volume, and trend speed. The theoretical basis for interpreting trends is the relationship between supply and demand. Let’s talk about price and trading volume in the eyes of professional traders. What can they read from them?

1. Identify support and resistance (use price to judge)

2. The speed of the rise and fall of the trend - the angle of the trend line (judged by price)

3. Identify overbought or oversold conditions (judgment based on volume and price)

4. Identify who is controlling the market at a certain stage (judge by price and trading volume)

5. At the top, identify the market makers creating a frenzy and attracting the public into the market (judged by trading volume)

6. At the bottom, identify the dealer creating panic and forcing trapped buyers to sell (judge by trading volume)

7. Use the principle of supply and demand to judge the quality of support and resistance (use trading volume to judge)

8. Identify the beginning and end of the banker’s accumulation or distribution (judged by trading volume)

9. Identify whether the market maker is absorbing selling orders at resistance and judge whether a breakthrough will occur (use trading volume to judge)