Volume Pillar Language


1. Shrinking Volume Pillar

Three consecutive days of decreasing trading volume, with shrinking volume during a decline indicating exhausted selling pressure. Shrinking volume during a rebound often signals a main force's shakeout.

2. Ladder Volume Pillar

Three consecutive days of increasing trading volume, which may seem like continuous capital inflow, but in reality, it’s overdrawing buying power and may indicate a pullback.

3. High Volume Pillar

A volume bar that exceeds the average volume of the previous three days by more than 50%. A high-volume bar at a low position may signal accumulation by the main force, while a high-volume bar at a high position may indicate the main force is pushing up to distribute.

4. Low Volume Pillar

The smallest volume bar within a period of at least 5 days, indicating extremely low market activity, relatively low risk, greater opportunities, and often signaling an imminent trend reversal.

5. Double Volume Pillar

A volume bar that exceeds the previous day's volume by more than 90%, or even two to three times the previous day, usually indicating main force entering the market and suggesting a new rally is about to begin.

6. Flat Volume Pillar

Several consecutive days of roughly equal trading volume, with both bulls and bears reaching a balance. A flat volume bar during an upward trend likely signals a potential reversal downward, while during a decline, it may herald a rebound.
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