in the stock marketpokerhandguideThe trading volume of a stock is an important indicator, which reflects the market's attention and activity on the stock. The shrinkage value, that is, the decrease in stock trading volume relative to the average level, is also an important reference for analyzing stock trends. This article will explain how to calculate the shrinkage value of a stock and its application in investment decisions.
Basic steps for calculating stock shrinkage value:
1pokerhandguide. Determine benchmark trading volume: You first need to determine the "normal" trading volume of a stock. Usually, we will select a period (such as 30 days or 60 days) as the basis for calculation, and take the average trading volume during this period as the benchmark trading volume.
For example, the trading volume of Stock A in the last 30 days is 1000, 1100, 900, 800, 1200, 1000, 1300, 1200, 1100, and 1000 respectively. Then, the average trading volume for 30 days is: (1000+1100+900+800+1200+1000+1300+1200+1100+1000)/10 = 1100 shares.
2. Calculate trading volume changes: Select a day (such as today) and calculate the difference between that day's trading volume and the benchmark trading volume.
For example: Today's trading volume of Stock A is 900 shares. Compared with the benchmark trading volume of 1100 shares, the difference is-200 shares.
3. Calculate the shrinkage value: Compare the change in trading volume with the benchmark trading volume to obtain the shrinkage value.
Shrinkage value =(change in trading volume/benchmark trading volume)* 100%
Taking the above example as an example, the shrinkage value for the day is: (-200/1100) * 100% ≈ -18.18%.
Application of shrinkage value:
By calculating the shrinkage value of a stock, investors can have a basic judgment on market sentiment and trading activity. Generally speaking, the lower the shrinkage value, the lower the market attention to the stock and may be undervalued. At this time, investors can consider whether to enter the market based on other financial indicators and market conditions. On the contrary, if the shrinkage value is too high, it means that the market is paying too much attention to the stock and investors need to be cautious.
Notes:
1. The shrinkage value is only one of the reference indicators and cannot be used as the basis for investment decisions alone.
2. When calculating shrinkage values, the length of the time period and the number of samples selected can affect the accuracy of the results.
3. Trading volume fluctuations may vary in different industries, and investors need to combine industry characteristics when applying shrinking values.
Through the above introduction, I believe that investors have a basic understanding of the calculation method of stock shrinkage value. In practical applications, it is also necessary to combine other indicators and market conditions to make rational investment decisions.
Example table:
Date Trading Volume (Shares) Day 1 1000 Day 2 1100... ... Day 30 1000