How to judge the nature of the market or individual stock sideways

After a stock rises sharply, the stock price will always fall and begin to adjust. That is to say, whether this stock is sideways, or there will be a new round of rise again, or building a head, generally speaking, consolidation in a relative range is a necessary process. At this time, how to judge the nature of consolidation is very important for future operations. However, whether it is the market or individual stocks, we can get useful enlightenment for future operations according to the trading situation during the consolidation period. Generally speaking, the trend of the market or individual stocks will shrink obviously after the ups and downs, and with the extension of consolidation time, its transactions will continue to shrink. For a stock, if the trading volume in the consolidation period is only slightly smaller than that in the previous rising period, and sometimes it is almost the same as the average trading volume in the previous rising period, then the probability of this stock falling again is extremely high. Of course, this adjustment means that after the stock price has fallen sharply, the transaction is still large. If the stock price has not fallen sharply, it is not terrible to consolidate at a high level. In fact, if a stock falls to a certain extent, the transaction shrinks rapidly, which means that the selling pressure is reduced, or most of the chips are in the hands of the main players, so new markets often appear. In fact, due to the fact that individual stocks tend to have a large decline at this time, this analysis is of little significance to the actual operation of individual stocks, but it is of great significance to grasp the market and has very important guiding significance to judge the future market. If an index falls more than 20%, it should be regarded as a major adjustment. Usually, starting from the highest point, you can find an adjustment axis between 10% and 15%. At this time, the trading level should be shrinking rapidly, and the daily turnover fell below the level of last year. However, the stock index did not hit a new low, but the transaction shrank sharply during the consolidation process. In this case, the market outlook is often expected to rise again. It should be pointed out that this judgment is based on the analysis of whether there is a head in the market, and it is used to judge the time for the market to restart in the short term on the premise of determining the long-term improvement of the market. Generally speaking, in a downward process, the emergence of any platform is an opportunity to go out, and there should be no illusions. It is meaningful to adopt the above analysis method only if the large rising period remains unchanged.