A decrease in shrinkage often means two things. First, in order to suppress the stock price, the dealer will wash the dishes by shrinking. Second, there is no main force to enter the market, and there are signs of capital outflow. In addition, when judging the cause, you can combine the location. For example, the shrinkage in the upward trend is more of a buy signal, the dealer suppresses the stock price, and the shrinkage at the end of the bear market is an exit signal.
1 The shrinkage in the upward trend is decreasing. This pattern is mainly caused by washing dishes for a long time, so this shrinkage is benign. As long as the stock rises in the future, the upward trend will continue.
The shrinkage in the downward trend is decreasing. This pattern mainly comes from the pessimism of bulls and the exhaustion of short-selling power. Therefore, in the later period of this pattern, the investors who were quilted refused to sell, and the bullish investors dared not enter. This is a signal to sell.
1. Decline in stock shrinkage: For individual stocks, the dealer depressed the price of the stock in order to attract goods, but the number of transactions in the stock was not particularly large, indicating that retail investors should buy the stock at this time when they are reluctant to sell, and the dealer will also raise the price of the stock at this time, making it easier to attract goods.
However, it is more likely that the shrinkage will continue to fall after falling, but it will not fall all the way to the end, and there will always be a short-term or certain adjustment in the middle.
2. The opportunities hidden behind the shrinkage:
Shrinkage means that the market transaction is relatively light, and most people agree with the market trend in the later period. Shrinkage generally occurs in the middle of the trend, and everyone agrees with the trend of the market outlook.
Shrinking mainly means that investors and institutions in the market have basically the same views, which can be divided into two situations: first, market participants are very bearish about the market outlook, resulting in only people selling and no one buying, so they shrink sharply; Second, market participants are very optimistic about the market outlook. Only people buy it, but no one sells it, so it has shrunk dramatically.
The shrinkage of the stock means that the stock price will stop falling and then enter a consolidation state. It is normal for the stock price not to be heavy in the process of falling. If you don't take over, you can't throw it out. No one wants to cut the meat. In the process of firm offer, there is often a phenomenon of infinite yin decline every day. Only after panic selling, the volume will stabilize again.