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I will also add that one must also be careful with volume as an
indicator. I will agree that over the long run volume counts. In the
short run it is the number of traders that trade is what counts. Also
known as market facilitation. I have seen a stock move up on very light
volume intra day and then towards the end of the day, a large sell order
goes through. The price still closes way up. Looking at the end of day
data, one might think that this was a very bullish day. But in fact
there was more selling than buying because of the large sell order. This
is one reason why the OBV is called on balance volume. It is that "on
balance", volume moves with price.
Harley
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