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| Volume growth and bar length |
Stocks that have moved sideways after a decline should be bought at the beginning of an uptrend after completing the sideways correction. In other words, it is a safe investment to buy stocks that move sideways rather than buy them in advance and confirm that they are turning upward.
A way to know that it is an upturned entry is to check whether the length of the bar increases and the trading volume increases.
A stock price repeats its rise and fall while drawing waves. In order for the stock price to rise, someone needs to buy it diligently, and the appearance of buying it appears as an increase in trading volume and an increase in the length of the bar.
As the fierce battle between the buying force and the selling force that will sell when it goes up develops, the trading volume increases and volatility increases, causing the length of the bar to increase.
□ Forces intervene in order for stock prices to rise
The best way to know early on whether there is an intervention of forces is to check whether the trading volume has increased and the length of the bar has increased.
The share price of an item that has risen and exited once the power has risen sharply, and after that, when the short-term quick sale is almost exhausted, the stock price gradually declines or moves sideways.
At this time, neither the side to sell nor the side to buy is strong, so the length of the bar decreases and the trading volume maintains a sharp decline. will do
It can be said to be a general stock price flow. After all, what is important to us in this stock price flow is to buy at the beginning of an upward turn, that is, when the trading volume increases in length as the force intervenes.
