In the futures market, Volume Price Analysis (VPA) is an important technical analysis tool, which can help investors to predict the trend of price changes by observing the changes in trading volume. The following will introduce in detail the application and analysis methods of energy diagram in the futures market.

oneBonitapokerroom. The basic concept of energy diagram

Volume chart is a combination of trading volume and price changes in the chart, it will be represented by a bar chart, and through different colors to distinguish the power of buyers and sellers. In the futures market, energy chart can help investors to judge the market trend and look for trading opportunities.

two。 The application principle of energy diagram

By observing the volume and price changes of the volume chart, investors can judge the trend of the market. If the price rise is accompanied by an increase in trading volume, it means that the buyer's strength is strong and the market may continue to rise.BonitapokerroomOn the other hand, if the trading volume increases when the price falls, it means that the seller's strength is strong and the market may continue to fall.

Energy diagrams can help investors find trading opportunities. When the price rises, if the trading volume decreases significantly, it may indicate that the price rising power is insufficient, and investors can consider shorting; on the contrary, when the price falls, if the trading volume decreases significantly, it may indicate that the downward momentum is insufficient. Investors can consider going long.

By observing the color changes of the energy diagram, investors can judge the balance of power between buyers and sellers. The green bar chart indicates that the buyer's strength is stronger, and the red bar chart indicates that the seller's strength is stronger. By comparing the color and height of the bar chart, investors can judge the changes in the trading power of the market, so as to better grasp the trading opportunities.

3. Analysis method of energy diagram

Volume-price analysis is the core of the volume-energy diagram. By analyzing the relationship between trading volume and price changes, we can judge the supply-demand relationship and trend of the market. When the price rises, if the trading volume increases, it shows that the buyer's strength is stronger; on the contrary, if the trading volume decreases, the buyer's strength weakens. When the price falls, if the trading volume increases, the seller's strength is stronger; on the contrary, if the trading volume decreases, the seller's strength weakens.

Volume-price deviation refers to the phenomenon that volume and price changes are out of sync. When prices rise, but trading volume decreases significantly, this situation is called "volume-price deviation", which may indicate that prices do not have enough momentum to rise and the market may turn down. On the contrary, when prices fall, but trading volume increases significantly, this situation is called "volume-price coordination", which may indicate that the market has a strong downward momentum, and prices may fall further.

Volume-price coordination refers to the phenomenon that trading volume and price changes rise or fall at the same time. When prices rise, trading volume also increases, this situation is called "volume-price cooperation", indicating that the market buyer power is stronger, the sustainability of price increases may be better. On the contrary, when the price falls and the trading volume increases, it shows that the seller's strength in the market is stronger and the persistence of the price decline may be better.

4. A case study of the Application of Energy Chart in Futures Market