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. After explaining to you the meaning of the sentence "bottom measurement over the top measurement", Lao Wu will give you a practical case to deepen your understanding and memory of this sentence. If you can't read it clearly at once, remember to collect Lao Wu's article and read it several times. It will definitely improve your trading awareness in the future.
Let’s look at Figure 2. First, find the largest trading volume at the top of this stock in the previous period, as shown in the figure, the maximum trading volume at the top corresponding to the dotted white box in the upper left corner in the figure. Then the stock price began to fall, and the trading volume did not break through the new high during the decline. However, when it reached the dotted white box in the upper right corner, the corresponding trading volume suddenly became larger and exceeded the maximum volume at the top. This is called the bottom volume over the top volume, indicating that the main funds began to flow in.
When this bottom volume exceeds the previous volume, we should not rush to buy. You find that the stock has started to fluctuate for a long time after it bottoms out. When will the stock price break off the bottom and start to rise? We can find the corresponding stock price position at the bottom, which we call it the "critical zone". When the stock price breaks through the highest price of the stock price in the critical zone, we can actively buy it, and then the stock price has a rapid rise.
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[Serious reminder at the end of the article] The content of this article is only for everyone to exchange investment experiences to realize financial freedom as soon as possible. No investment recommendations are made. Please do not blindly follow the trend. Investment is risky and you must be cautious when entering the market.