Trading volume equals to stock’s momentum. If no momentum, the stock price won’t change much, or even if it does rise up a lot, it will eventually drop back down.
This is why investors should first see a stock’s volume rather than its price, when wanting to buy a stock.
Let me show an example.
From December of 2019 up until May 2020, KAWAN has very low volume, causing their price to be stagnant. Even after the big drop in March, the price only rebound back to the previous price range. However, just before the release of their quarter result, their volume surged, causing their price to start rising too.
Volume can also tell the current trend, whether they are going up or down.
We can see from SUPERMX that up until the start of September, their volume is still very high, causing their share price to continuously break their new high. However, once their volume started to decrease, it is more difficult for their share price to rebound back to their previous high. This can also tell that the glove uptrend started to slow down in September.
In short, increase in trading volume can reveal the possible uptrend of the stock, especially with the price increasing too. Hence, investors can try to buy a stock when volumes are increasing, and sell the stock if volumes are decreasing.
一个股的交易量就是它的动力。如果没有了动力，股价便不会起伏太多，即使有短暂的上升，也会很快的下滑。
这就是为什么投资者在买股时应该先看个股的量再看它们的价钱。
我们来看个例子。
从2019年12月到2020年5月为止，KAWAN都有很少的交易量，造成它们不动的股价。就算过了三月的大跌，他们也只是回到之前的价位。但是，就在他们宣布业绩前，交易量便提升了，造成他们的股价也节节上升。
交易量也可以给投资者提示现在的趋势，是上升的或是下跌的。
我们可以看到SUPERMX到九月头为止都有很高的交易量，造就了它们的股价屡屡破新高。但是，自从他们的量开始下滑后，股价就很难回去他们的历史高度。这也给出了手套的上升趋势在九月后便开始减弱。
总结，交易量的上升可以提示个股有可能呈现的上升趋势，特别是价钱也在上升时。因此，投资者可以尝试买入交易量正在上升的股，而卖出交易量下跌的股。
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https://klse.i3investor.com/blogs/InvestingKnowEverything/2020-12-09-story-h1537477600.jsp
