PRICE and VOLUME
Discovering what Technical Indicators work best with other technological signs can be a lot like untangling a ball of elastic band.
In Trading U, Rob Roy goes over exactly how Cost and also Volume interact.
In a bullish fad verify that cost is up as well as ordinary volume is also enhancing to sustain the favorable action.
In a bearish fad, confirm that the cost is down and also the typical quantity is increasing to support the bearish step. In an uptrend nearing a resistance, validate that the cost is down( retracing) and also the ordinary quantity is going down. You have a possible turnaround of the retracement and also a break of resistance. In a sag near an assistance line, verify that the cost is moving up from support (backtracking )but the volume is lowering. You have a potential reversal of the retracement and also a break of the support. Price and also Quantity High Cliff Notes Bull– Price rising, Volume increasing Bearish– Cost dropping, Volume going up Potential Bear Turnaround at assistance– Price rising, Quantity decreasing Possible Bull Reversal at resistance– Price going down, Volume dropping. The major concern is
the quantity supporting the cost direction? Ordinary everyday volume with a 21 straightforward moving average will certainly give you a fantastic
image of the last 21 trading days (about a month ). This will aid you see at a glimpse if the volume
is higher than average or less than average. Find out more regarding Technical indications in TRADING U.