The so-called volume-price divergence means that the stock price should have reached a new high, and the amount should also reach a new high. Because there are many people who buy, they should reach a new high. However, the volume price divergence is that the stock price has reached a new high, but the amount is not large, and there is no record high. This shows that the rise in stock prices may be caused by very few people buying. This kind of volume-price divergence at the top should be particularly careful.
This shows that the amount is not large, and the strength of the rise is not enough. If you don't have enough strength, you may come down to rest for a while, and then go up, or if you don't have enough strength, you will fall down and completely enter a bear market. In any case, a wave of adjustment is about to begin, whether it is a phased adjustment or a complete entry into a bear market depends on the mood of the market. If the bullish atmosphere is too warm, there is a consistent expectation, that is to say, everyone is bullish, but the amount is very small, which means what, indicating, most of the bullish have bought, are in the circle, so now this new high, it is very likely that the small number of people outside the circle pulled up. These people also bought. Then, there is no buying outside the circle, only the fall remains. This is the performance of the bull's head. At this time, the probability of completely entering a bear market is large.
If everyone is still not very optimistic about the stock market, and the valuation is not high, then rest for a period of time, the probability of rising relay is greater. At this time, just take it. At this time, it shows that most of the people outside the circle have not yet woken up and are not optimistic about the market. Then the market will rest for a while, waiting for these people to wake up, and when these people wake up, they will enter the circle to take over, then it may continue to reach new heights.
To sum up, the top volume price divergence, is not strong enough, all at once did not rush up. One possibility is that there is no energy to rush again, everyone is optimistic, and they have bought. That would be a bear market. One possibility is that the strength has not eased up, and everyone is not optimistic, so it is necessary to save strength and then rush upwards. Because many people are not optimistic, the market valuation is not expensive. At this time, it is necessary to use a period of adjustment to save energy. At this point, we don't move, just wait.