Courtesy of Read the Ticker.
Those who use volume as part of the technical studies will say the wish to see a rising market where volume is greater on the upswing that that on the down swing.
A very good demonstration of this is shown by the readtheticker.com NetVolume indicator, if volume is healthy during a rising market then the NetVolume will rise with the trend, if it is not then other forces are at work.
Also divergence is between price and the NetVolume indicator add value, if you have a fall in the market and the NetVolume indicator does not show an equal swing down, then the divergence must be bullish and the swing down can be considered a light volume sell off.
The NetVolume indicator is a price and volume trend ‘health check’, it is not a market timing tool, or an oversold or over brought indicator.
In the chart below the (Symbol: SSRI) NetVolume indicator gave an early warning signal that a turn was near, on reviewing other gold and silver stocks with the NetVolume indicator and apply Wyckoff logic it was clear accumulation was present and higher prices could be expected in the future. The rest is history.
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Investing Quote…
…”I did not know then what I learned later, what made me fifteen years later, wait two long weeks and see a stock on which I was very bullish go up thirty points before I felt that it was safe to buy it. I was broke and was trying to get back, and so I waited. That was in 1915.”…
Jesse Livermore
..”The key to making money in stocks is not to get scared out of them”
Peter Lynch
…“People somehow think you must buy at the bottom and sell at the top to be successful in the market. That’s nonsense! The idea is to buy when the probability is greatest that the market is going to advance”…
Martin Zweig (The inspiration behind a number of Martin Zweig’s methods came, from Jesse Livermore).
..”If past history was all there was to the game, the richest people would be librarians”..
Warren Buffett
..”it is better to have few stocks and to watch them carefully”…
Bernard Burach
