Are buying and selling symmetrical? Buyers assume risk of loss. Stocks can collapse in an absence of buyers, but will not go up in an absence of sellers. Buyers will not pay any price, but sellers may be willing to sell at any price.
how to read volume
- Thread starter billyjoerob
- Start date
So now you're an expert on volume patterns? What happened to "it's the price, stupid"?
I stopped discussing volume because people found it so difficult to understand and because it's not really necessary.
As for your snarkiness, I didn't realize we had issues. If I had, I wouldn't have gone to the trouble of providing so much detail regarding the PV analysis of your chart.
It won't happen again.
Was I getting on your case? That was your argument, right?
I'd agree with you about both charts. The KMP chart is directionless, and the increased volume looks to me like big sellers are dribbling out shares.
The NCQ is an index rebalance. I expect the stock to pop back up to $2, I own shares.
what does that even mean, RN? Really. Enough of the zen bs. What are you going to do as a trader if not focus on probabilities of future price movement?
Someone piss in your wheaties this morning
That which you label zen is a mindset
=================
Mkt is uncertain â either accept that or suffer (and I defy you to prove otherwise)
Since the mkt is uncertain â any âexpectationâ on a traders part is fallacy / lunacy/ delusional
Do what price dictates â period
Zen enough for ya
RN
eta; probabilities are like everything else in this business - they work till they don't
OK see what you're saying. don't think we disagree. making predictions is what traders do. volume can help. but volume at highs and lows is not symmetrical. volume should move price. if it doesn't, at low it's bullish. at high, bearish. pure price action traders are missing out on valuable patterns and clues that predict price.
http://stockcharts.com/h-sc/ui?s=SD&p=D&b=5&g=0&id=p70824977460
If you look at this chart, the firm announced good news (a large asset sale) and the stock went down on high volume. Normally a decline on high volume would be bearish, indicating a negative reaction to the news.
Let's assume that there are 10 large investors with large positions (with losses) for sale. On a day to day basis, there are no large buyers, and the price floats up on small volume as the large sellers sit on their hands. The large buyers are in no hurry, seeing all the stock for sale. The sellers have a minimum price and otherwise will not sell. Once the news of the deal is released, large buyers show up. Because of the embedded sellers, buyers demand a size discount. If this is correct, the high volume is more informative than the price decline.
If this is correct, the stock should show increased volume over the next few weeks (without much price movement) as the large sellers and large buyers are temporarily equally matched.
If you look at this chart, the firm announced good news (a large asset sale) and the stock went down on high volume. Normally a decline on high volume would be bearish, indicating a negative reaction to the news.
Let's assume that there are 10 large investors with large positions (with losses) for sale. On a day to day basis, there are no large buyers, and the price floats up on small volume as the large sellers sit on their hands. The large buyers are in no hurry, seeing all the stock for sale. The sellers have a minimum price and otherwise will not sell. Once the news of the deal is released, large buyers show up. Because of the embedded sellers, buyers demand a size discount. If this is correct, the high volume is more informative than the price decline.
If this is correct, the stock should show increased volume over the next few weeks (without much price movement) as the large sellers and large buyers are temporarily equally matched.