💹 Knowledge Growth Classroom 💹 Today, let's talk about a super important indicator in the financial industry - trading volume. Don't be fooled by its unremarkable name, but it is a prominent figure in the financial industry. If you don't understand it, it's easy to take a wrong investment path. 1、 What is the trading volume? Trading volume refers to the total amount of financial products (such as stocks, futures, digital currencies) traded over a period of time (such as one day, one week, or one month). High trading volume, active market, low trading volume, quiet market. 2、 The role of trading volume Judging market activity: high trading volume and easy price fluctuations. Small trading volume and relatively stable price. Comparison of buying and selling forces: If there are more active buyers in the external market, the price may rise; if there are more active sellers in the internal market, the price may fall. Predicted price trend: volume increase, price rise, bullish; volume decrease, price fall, bearish; volume increase, price fall may involve significant capital intervention, requiring attention. 3、 Trading volume pattern Volume reduction: Trading volume is light, and market sentiment is consistent. Land volume: The trading volume is extremely low, which may indicate a rebound. Volume increase: Active trading and widening divergence. 4、 Trading volume skills Quantity before price: Changes in trading volume often lead price changes. Pay attention to the moving average: the trading volume moving average is bullish on the rise and bearish on the fall. Comparison history: Abnormal increase in trading volume indicates market changes. 5、 Summary Transaction volume is an important indicator for analyzing market activity, buying and selling power, and price trends. Mastering it can better understand market trends.