Hello, dear investors, today we are going to introduce a simple method for grasping the tops and bottoms of market waves, which is a very important skill for those who engage in wave trading or medium to short-term trading. This method originates from the judgment of volume-price coordination.

Alright, let's first take a look at a case study, such as the stock of a pharmaceutical company called "Lai Mei." We can observe that essentially, at any peak of the stock price, it corresponds to a peak in trading volume.

There are many popular volume-price techniques in our market, such as buying on a breakout with increased volume. But why is it necessary to have increased volume?

I've learned that many students are only familiar with certain levels of trading volume, such as large volume, multiple volume, or even sky-high volume. They often struggle to identify the signals of a potential price increase in areas of low volume that form the troughs. This has caused a lot of confusion for many people.

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Today, we are going to address this issue and show you how to discover the conditions for a price increase in positions where the trading volume is very low, based on volume-price coordination.

Before we understand this technique, we must first recognize something called the "volume stock unit." The volume stock unit has a significant effect. We have volume and volume wind, and today we focus on understanding the pattern of this volume stock unit.

It is quite evident that volume wind is also easy to identify. Volume wind is characterized by low trading volume on both sides and high trading volume in the middle, with three trading volume bars forming a volume wind. Similarly, three trading volume bars form a volume stock, where the trading volume in the middle is low, and the trading volume on both sides appears to be slightly higher.Alright, we primarily use the volume stock technique to determine the tops and bottoms of a wave band.

For instance, let's take the case of Leme Pharmaceutical that we just discussed. If we zoom in on a particular segment of its trend, like this position, this is the example we saw earlier. How can we identify a starting point for an uptrend from these troughs? We can observe that from this position, the stock price begins to fall. During the decline, we notice that there are volume stock units here and here as well. Pay attention to the low volume column in the middle and the high volume columns on both sides, which form a volume stock unit, regardless of how large or small the trading volume is.

We can see that when a volume stock occurs at this position, the height of the volume stock gradually increases. Thus, the first bottom is established here. Indeed, there was a rebound, although it was not successful.

Next, we repeat the pattern of the volume stock. The volume stock units gradually decrease, and when it comes to this volume stock, it gradually increases. The second volume stock is still increasing, and we can see that the corresponding bottom is established.

So, generally, the starting position of such a wave band begins with the volume stock unit, which signals a gradual recovery.

Well, when a stock price reaches a high position, in a high volume area, we clearly know that there might be a phenomenon of the main force selling out. How can we accurately grasp the determination of such a signal? It is still the determination of the volume stock unit.

For example, here, there are two volume stock units. These two volume stock units are gradually decreasing. Even if it's not obvious, if you look closely, you can find this issue. Before the accelerated rise, for instance, there is a volume stock here, and here, and another one here, and still another one here. These several volume stocks are all gradually increasing, with no signal to sell.This includes the occurrence of a second wave rebound here, and during this rebound, a volume stock appears, and another volume stock appears here as well. Between these two volume stocks, a gradually declining trend is formed. We can observe that in the highlighted area, there are two instances of volume stocks gradually declining, so if you do not sell at this time, the risk is quite significant.

It can be seen that the subsequent decline in this wave is also very fierce.

Therefore, using volume stock units to judge the top and bottom of the wave is a very useful technique, but it is not 100% accurate, so do not expect this technique to be 100% reliable. There are also some special trends that may not strictly conform.

Thus, everyone should continue to learn more about our volume-price-time-space system, which will be of great help. Well, that's all for this little tip.

I wish everyone smooth investing, and if you have any questions, you can leave a message for us. Thank you all.