Trading on VolumeVolume can be the key to understanding what is relly happening in the stock market. Volume is a dynamic aspect of the market, reflective of supply and demand, and thus crowd behaviour. This work gives a complete explanation of volume and how it can be used to trade more effectively. It shows that volume behaviour and changes can provide important clues to price movement, in direct contrast to such established theories as random walk and efficient markets that state that price is essentially unpredictable. The book explains how volume discloses the amount and type of interest in a stock. By examining and understanding the dynamics of volume, the trader can pinpoint the rise, climax and fall of the activity of market participants (behavioural finance), which provides an extremely reliable indicator of price reversal in real time. Knowing this helps the trader get out near stock or market tops and buy near stock or market bottoms. |
Contents
Volume Is the Cause Price Is the Effect | 3 |
viii | 9 |
Random Walk or Behavioral Finance? | 17 |
Copyright | |
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Common terms and phrases
activity actually bar charts bear market bearish become behavior behavioral finance bottom brokerage bull market bullish buy or sell buyers buying and selling Chapter closed-end funds crowd daily net volume daily volume day's decline downside drive emotional Equis International Equivolume chart ETFs exchange-traded funds extremely Figure graph holders huge implications important individual stocks Internet intraday investment investors and traders large numbers look lower volume major margin calls MetaStock million shares moving average mutual funds NASDAQ negative NYSE OBigCharts.com occur on-balance volume overall market panic percent plot positive price action price and volume price change price direction price move price movement price reversals prior psychological rally random walk reason rising sellers short-term signal stock market stock price technical analysis tick volume trading day trading session trading volume trading-volume trend TRIN readings upside volume and price volume crescendo volume spikes watching