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Yes, that sounds right. I don't want to use it to get into a trade; but
rather to be a screen so I don't get into what could be a bad trade.
Specifically, my thinking is that I'd like to avoid a situation where my
system would get me long, because the price action suddenly moves
up...but when looking at volume it would turn out it was moving up on
thin volume. It seems like in these cases, price can just as easily
come back down since there's (probably) no big bidder; rather, its
either a fluke (noise), or maybe the specialist or a floor trader
manipulating the stock price, to get a bunch of day traders to jump in
and buy their stock at a higher price than "fair market value". (And,
of course, same logic for going short.) Do you agree?
Gary Funck wrote:
>
>
> yup, glad to help. On the latter idea, of using volume to signal
> reversals, I think it may take some experimentation. And it may be
> that high volume is indicative of a turn, but low volume is not.
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