Quote from jack hershey:
The trends in the market are referred to by names. When a trend is up it is called long. When a trend is horizontal it is called flat or lateral or congestion or in balance or a swing channel or between support and resistance. When a trend is down it is referred to short.
You have to express these things to those you trade with in conventional way. They will correct you if you do not follow their convention.
I reread your inquiry.
You are asking about the volume rising.
What happens in a cycle is that as the trough is apporached the volume goes to it's lowest point.
From this condition of lowering volume to it;s lowest, we see the price also sinks to the support level. It is like a plane landing. I will dig up the boolean equations for this I have seven.
When the trough is reached (Score 0), then you look for the cycle to begin again.
Volume will suddenly start rising and when it gets to the former low volume (DU--dry up) early in the day you see that at that point the price will begin to advance upward from the trough (support) value.
If the volume continues to build during the rest of the day, then you have a trend beginning. The way to monitor this is to do a prorata assessment of the volume as the day passes. When it hits the DU by 11:00 am you have a good signal. when the market picks up again at 13:15 you will see the price advance again as the additional volume drives it.
This is not complicated.
Lets say you bought in and a few days pass. you will see the money velocity peak. That is the steepness of the price curve. Once you have reached this price slowing down, you can watch the volume again and watch closely.
The fact is that the price volume relationship is symmetric.
As you can imagine after the price peaks, a lot od people exit to go to another stock.
there is a surge of volume as they leave. It is called "smart money". Smart money does not hold stocks when they decline. Why bother.
Thus you can exit using volume as a guide just the way you enter using it.
when you get to optimizing making money by rotating your capital through a series of stocks and their cycles, you will find out that entering late and leaving early is the best way. the reason isn't obvious though. the primary reason is that you do more cycles. Increasing cycles is very important compared to profit per cycle.
Look at the role of the variables in the compound interest formula. You see they can be ranked according to the relative importance for making money. The exponent which is the timing variable is the most powerful.
Soon you will see that you exit as the moneyvelocity declines to the value of the increasing money velocity of the stock beginning its cycle. This is the money velocity cross over value. by just slipping out of a stock and into another you maintain a high continuing money velocity.
Most people try to get into trends as early as they can. They are defeated with this mental limitation. you need to get in when the money velocity is at cross over.
This also eliminates the concept of drawdowns. There are none in investing after you get to a minimum level of sophistication.
