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What is a key reversal day?
Harley Meyer
Steven Buss wrote:
> I thought that I noticed on CNBC late in the day that, despite the up
> day,
> down volume was higher than up volume today. Anyone know where to
> find out
> for sure?
>
> Steven Buss
> Walnut Creek, CA
> sbuss@xxxxxxxxxxx
>
> -----Original Message-----
> From: David_Radtke@xxxxxxxxxxxxxx <David_Radtke@xxxxxxxxxxxxxx>
> To: metastock-list@xxxxxxxxxxxxx <metastock-list@xxxxxxxxxxxxx>
> Date: Wednesday, October 29, 1997 12:35 AM
> Subject: Re: Key reversals
>
> >Jerry,
> >
> >Volume does not always follow the trend. This is referred to as a
> >divergence, and it can be a key indication of what is to come!
> >
> >The stocks you observed showed a sharp drop in price accompanied by
> low
> >volume, during a strong bull market. Add it all up and you get the
> rebound
> >we had today! On the other-hand when specific stocks experience a
> sharp
> >decrease in price with heavy volume, they are more likely to continue
> their
> >downtrend.
> >
> >I had been short SLOT for about a week, and covered yesterday. SLOT
> is an
> >example of a stock that was declining on heavy volume.
> >
> >David Radtke
> >
> >
> >
> >
> > (Embedded
> > image moved metastock-list @ metastock.com
> > to file: 10/28/97 03:52 PM
> > PIC21827.PCX)
> >
> >
> >
> >
> >To: metastock-list @ metastock.com
> >cc: GROBERT1 @ aol.com (bcc: David Radtke)
> >Subject: Key reversals
> >
> >
> >
> >
> >I reviewed most of the stocks in my data base after Monday's collapse
> and
> >noted the large majority were down sharply but on no pick up in
> volume. In
> >many cases, the volume dropped well below the daily average.
> >Then I reviewed them again after Tuesday's rebound and discovered
> most had
> >huge volume increases and closed up after earlier lows...key
> reversals.
> >I would appreciate hearing from others what they saw. Not so much
> about
> >the
> >key reversal day on Tuesday, but the action their stocks had on
> >Monday.....the low volume on a sharp down day.
> >I always believed that volume followed the trend. Any comments?
> >Jerry
> >
> >
> >
> >
> >
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