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How to understand volume-driven price increase?
The key term is volume increase, where the trading volume compared to previous periods significantly enlarges, showing a multiple-fold increase. At the same time, the price increase can take two forms:
1. The price surges dramatically, with the significantly enlarged trading volume representing a massive and unified buy order, pushing the price sharply upward in a short period, resulting in a large increase.
2. The price increase is relatively small, with the clearly enlarged trading volume simply viewed as the total of unified buy orders and trapped sell orders at the bottom, causing the price to gradually decline after rising, ultimately showing a modest increase.
It should be noted that: volume-driven rises at relatively low or absolute lows often mark the beginning of a new market cycle.