cmlee
Volume is an important Factor in Breakouts. Just to refesh....
Generally, volume follows trend, that is in a rising trend volume should expand on rallies and contract on declines. In falling trends volume should expand on declines and contract on rallies.
When volume contracts after an extended rally, or expands sharply after an extended decline a dramatic reversal will normally transpire.
Volume and volatility contract in consolidation patterns because investors cannot reach consensus, they are undecided.
Volume should expand significantly for upside breakouts. If volume does not expand the breakout is considered illegitimate.
Volume may not expand for a downside breakout because falling share prices cause demoralization and inactivity among stockholders. During such circumstances, fewer shares are required to drive prices lower
Karthik
Volume is an important Factor in Breakouts. Just to refesh....
Generally, volume follows trend, that is in a rising trend volume should expand on rallies and contract on declines. In falling trends volume should expand on declines and contract on rallies.
When volume contracts after an extended rally, or expands sharply after an extended decline a dramatic reversal will normally transpire.
Volume and volatility contract in consolidation patterns because investors cannot reach consensus, they are undecided.
Volume should expand significantly for upside breakouts. If volume does not expand the breakout is considered illegitimate.
Volume may not expand for a downside breakout because falling share prices cause demoralization and inactivity among stockholders. During such circumstances, fewer shares are required to drive prices lower
Karthik