How to use technical indicators to analyze the stock in practice

Technical analysis of stocks mainly from the volume, price, to reach these prices and volume of time used, price fluctuations in the space of several aspects of analyzing trends and predicting the future. In the stock market volume and price is the key to technical analysis, where the volume is the cause of the market movement, the price is the result of the market movement, there is a basic correspondence between the volume and price, known as the volume-price relationship. Using this relationship, it is possible to speculate on the future movement of stock prices based on changes in volume and stock prices.

In the volume and price of the relationship between the combination of the significance of the main are as follows:

1. price increase volume increase

In the early stages of the uptrend, if the volume of stock prices with the rise and enlargement of the upward trend has been, investors can follow; if the stock price after a period of great rise, suddenly appeared very large volume, the price has failed to rise further, which generally indicates that the long turn weak, the market may be reversed at any time.

2. price up volume shrinkage

Divergence phenomenon, means that the stock price is high, the willingness to follow up is not strong, at this time to the future volume changes to be observed. If you continue to rise and the volume increase, the volume shrinkage is the phenomenon of selling; on the contrary, you should reduce the position to avoid high hedge.

3. price up volume flat

If in the early stage of the uptrend, is likely to be a flash in the pan, should not follow up.

4. price stabilization volume increase

If in the early stage of the uptrend, showing that there is the main force involved, the stock price may change at any time, can follow up.

5. Price stability and volume contraction

Indicates that investors are still on the sidelines. If in the downtrend, said in the gradual bottoming out, you can gradually build a position.

6. Stable price and volume

More and more evenly matched, will continue to be a state of consolidation.

7. Price drop volume increase

After a period of continuous decline, the price of a slight drop in volume increased dramatically, which can be regarded as the bottom, you can intervene; if in the early stages of the decline, will later form a downtrend; in the continuing uptrend, it is the reversal of the downtrend signals.

8. Price drop and volume contraction

If at the beginning of the downtrend, it means that the downtrend will not change; if after a long period of decline, it means that the market may be stabilized.

9. Price drop and volume flat

Indicates that the stock price began to fall, reduce positions; if it has been falling for some time, the bottom may appear, pay close attention to the development of the market.

These can be slowly to comprehend, the novice can refer to the relevant aspects of the book system to understand, and then combined with a simulation of speculation to practice, so that the theory can be practiced to quickly and effectively master the skills of the current Niu Shoubao simulation of speculation is not bad, which many of the features enough to analyze the market and stocks, the use of a certain amount of help. I hope this can help you, I wish you a happy investment!