|
PureBytes Links
Trading Reference Links
|
Jerry,
In my example of the stock [SLOT], price and volume are not in sync at the
beginning of the down trend. Volume is up and price is down.
Here's the way I've always interpreted price/volume patterns.
[The rule: prices tend to follow the path of least resistance. Caveat
emptor, there are always exceptions to rules and interpretations in the
markets.]
The Bullish Trend:
When prices rally on heavy volume and continue to advance after a decrease
in volume, there is a good chance that the bullish trend is strong and in
tact. On the other hand if prices declined as volume decreased, the trend
may not be so strong.
The Bearish Trend:
When prices decline on heavy volume and continue to decline after a
decrease in volume, there is a good chance that the bearish trend is strong
and in tact. On the other hand if prices rise as volume decreased, the
trend may not be so strong.
Sorry if I may have confused you even more. The above has ususally worked
for me.
David
(Embedded
image moved metastock-list @ metastock.com
to file: 10/29/97 07:49 AM
PIC03576.PCX)
To: metastock-list @ metastock.com
cc: (bcc: David Radtke)
Subject: Re: Key reversals
David....
True, there can be a divergence with volume and price. In your own
examples
volume and trend (price) are in sync. What I am saying is that if price is
up and volume is up, then up should be the trend. Now, if price is up and
volume is down, then the trend is not up, or at least very suspect.
Jerry
Attachment Converted: "c:\eudora\attach\PIC03576.PCX"
|