Volumes say diffrent things at diffrent times:)
An important concept that many traders miss is that heavy volume is not always bullish.
Heavy volume is valuable during a breakout or at an important low. However, heavy volume with no substantial movement signals that one party is "distributing" the stock to another.
When there is heavy volume AFTER a strong uptrend, it's usually institutions distributing stock to retail investors. When you see heavy volume AFTER a long trend low, then it's usually institutions accumulating from retail investors.
Notice the common theme?
Institutions are rarely transparent with their intentions, however, they can't hide the volume they trade:D.
This is time tested thing may not be true always:)
Regards
Rish
No comments:
Post a Comment