TSXV:NYX.DB - Post by User
Post by
bohikamon Aug 30, 2016 2:41pm
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Post# 25192177
RECORD 1 WEEK VOLUME -- WE ARE GOING HIGHER
RECORD 1 WEEK VOLUME -- WE ARE GOING HIGHER
Using Volume To Predict Price Movement
Tim Bourquin
A trader can't live or die by any one indicator. But understanding volume can provide insight into a stock's behavior to help you determine its overall health. The most important rule is this: volume precedes price. Typically, before a stock price moves, volume comes into play. The beauty of this indicator is its flexibility. Changes in volume can be used intra-day to determine short-term price movement or over several days to determine a stock's two to three day trend direction.
The basic theory is this: if price and volume are moving in the same direction, the trend of the stock price will continue.
The best-case scenario is one when volume surges without an accompanying surge in price. That typically means the buyers of a stock are more aggressive than the sellers. And once they take out the last shares the sellers have, the price just pops. It is difficult, if not impossible, to time the minute of the day when the stock will make its move. But when you see this combination of sideways price movement, an increase in volume trends, and an increase in on-balance volume, that typically means the stock are heading higher.