#Gate 品牌战略重磅升级 In the Candlestick Chart, VOL is the Trading Volume indicator, and its usage is as follows:

Observe the size of the Trading Volume

- Trading Volume: When the bars of the VOL indicator become significantly longer and exceed the recent average level, it indicates that market trading is active, with a large divergence between buyers and sellers, and stock prices may experience significant fluctuations. For example, an increase in Trading Volume during a price rise may suggest that more funds are buying, pushing the stock price to continue increasing; whereas an increase in Trading Volume during a price decline may indicate panic selling, accelerating the drop in stock prices.

- Decreased Volume: The VOL indicator's bar line becomes shorter and falls below the average level, indicating that market trading is light, with the forces of buyers and sellers relatively balanced. The stock price may be in a relatively stable state. An increase or decrease in volume often implies that the continuation of the trend may not be strong, and adjustments may occur in the future.

Analyze in conjunction with stock price trends

- Price increases with rising volume: When the stock price rises simultaneously with an increase in trading volume, it is usually a positive signal indicating high market attention on the stock, with the bulls dominating, and the stock price is expected to continue rising.

- Price increase with declining trading volume: The stock price rises but the trading volume gradually decreases, which may be due to a high concentration of chips in the market and a higher degree of control by the main funds. The stock price may continue to rise in the future, but one should also be wary of the risk of a pullback after a lack of upward momentum.

- Price drop with increased volume: The stock price is declining while the trading volume is increasing, which may be due to the spread of market panic, leading to large sell-offs by investors. This situation may indicate that the stock price will continue to drop in the short term, but if the stock price is already at a low level, it may also be a sign that the main funds are taking the opportunity to accumulate.

- Price Decline with Decreasing Volume: When the stock price falls and the trading volume shrinks, it indicates that the market's trading willingness is weak and the bearish forces are gradually weakening. If the stock price is at a low after a long-term decline, it may signal that the stock price is about to stabilize; if it is at a high, it may indicate a continuation of the decline, with further room for downward movement.

Identify the peaks and troughs of Trading Volume

- The peak of trading volume often occurs at important turning points in stock prices or during phases of accelerating market trends. When trading volume peaks and the stock price cannot continue to rise, it may indicate that the upward momentum has been exhausted and the stock price is about to reach its peak.

- The trough of Trading Volume usually appears during a period of price consolidation or just before a trend reversal. When Trading Volume continues to shrink to a low point and then shows a moderate increase, it may signal that the price is about to start moving.

Use the average volume line to determine the trend.

- The average volume line is the moving average line of trading volume, generally including 5-day, 10-day, and other average volume lines. When the short-term average volume line crosses above the long-term average volume line, it forms a golden cross, indicating that trading volume is beginning to increase, market activity is rising, and the probability of stock price rising is higher; when the short-term average volume line crosses below the long-term average volume line, it forms a dead cross, indicating that trading volume is shrinking, market trading is light, and stock prices may decline.

The use of VOL in Candlestick requires a comprehensive analysis of multiple factors such as stock price trends and market conditions to help investors better grasp market trends and the timing of buying and selling stocks.