trading
swing picks
Trading Home
TRADING STOCKS - STOCK TRADING TACTICS

levelSwing Trading Picks ] [ Swing Ideas ] [ Swing Charts ] [ Daily Stock Picks ] [ Trading Software ] [ Chart Patterns]

Stock Trading  Stock Trading - Technical Analysis, Trading stocks, Stock Charts, Trading strategies

Trading Education   Trading Ideas   Trading Strategies   Trading Tools
 

 

 
TRADING STOCKS TACTICS

Limited Offer - 60 days Try-Out:
Try Forex Profit Accelerator For FREE
Special Time Limited Risk-Free Offer!

Protect & Grow your portfolio
Portfolio Prophet
AVOID market crashes

Forex Profit Multiplier
MULTIPLY your profit potential in 60 seconds or less of active trading

Trading stocks education - Trading tactics & examples

Importance of Volume

Price is Everything

Technical analysis is the study of historical price performance in an effort to predict future price performance. Price is the only accurate measure of investor sentiment -- it is the intersection of supply and demand. Investor sentiment is at least and possibly a more important determinant of price than fundamental factors like earnings, revenues and profit margins.

Technical analysis is the study of price and the factors that determine price and thus Fundamental analysis does play a role in shaping investors perception of value. The technical analyst believes that all perceptions of value are encapsulated in one statistic, price.

There are three important principles that govern all technical analysis. First, price is NOT random, second, price anticipates fundamental change and third, the relationship between price and time is linear.


Volume should follow the trend

Volume should follow the trend.

In a bullish phase volume should expand on rallies and contract on declines. In a bearish phase volume should expand on declines and contract on rallies.

In an uptrend an increasing number of buyers are required to thwart pent-up and natural selling pressures. The higher a stock moves in price the more likely it is that those that bought the stock at lower prices will want to sell. For the rally to continue these shares need to be absorbed by new buyers. If price advances quickly buyers may step back creating temporary weakness but these periods should be characterized by weak volume if the trend is strong.

In a bearish trend, when the outlook is poor, volume should expand on declines because buyers are overwhelmed by sellers. If the stock sinks quickly some sellers will refuse to sell, choosing to wait for a small rally in price. This temporary absence of sellers creates a small vacuum that should lead to a light volume rally. When the stock rallies sufficiently sellers that failed to exit ahead of the first major decline begin selling and once again volume should expand.


* * *

Swing Trading:   Futures Trading | Quantum Swing Trader | Day Trading | Trade Forex
   Quantum Swing Trader  ~  Swing Trading Principles  ~  UMT  ~  ETF  ~  Trading Videos

  Trading Tactics
  Chart Patterns
  Swing Trading
  Trading Gaps
  Elliott Wave Trading
  Technical Analysis
  Trading Software
  Trading Commentary
  Trading Stock Picks
  Daily Trading Signals
  Charts:
*   BDY
*   HAS
*   ADRX
*   GOOG
*   MSFT
*   MICU
*   PETM
*   SBGI
*   SHOP
*   SOLF
ChartPattern Trading $ystems
ChartPatterns.com - 3 week FREE trial

Shopping: Products & Services

Swing Trading Daily Blog     Swing Trading Ideas
Trading - VIII   VII   VI   V   IV   III   II   I   XII   XI   X   IX

Trading Tutorials   Pattern Cycles Highs, Bottoms, Breakouts, Declines, Reversals, Tops, Trends | On Bottoms | Adam & Eve Tops | Adam-Eve-Adam | Bilateral Setups | Bollinger Band Tactics | Market Physics | 5 Fibonacii Tricks | Hell's Triangle | MA Crossovers | OverBought / OverSold | The Big W | Time Trading | Voodoo Trading

Chart-Pattern

Futures Trading Room

Forex Trading Room



Sharks     Great White Shark     Shark Attacks     Med Sea Sharks
               Wizard of ID