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But not just at a swing low compared to the previous bars lows leading into the swing low but between the volume at that swing low and the prior swing lows before.
Just buy dips on high volume
- Thread starter 1a2b3cppp
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But not just at a swing low compared to the previous bars lows leading into the swing low but between the volume at that swing low and the prior swing lows before.
Compare A to B and C. A and B were similar volume but A was lower price and A was much lower in volume than C ... which says selling is fading. Also notice after A low was in place big volume did not come in right away unlike previous lows B and C, which tells me it would sustain - the other two pops were panicked shorts covering mostly not new longs:
Can you elaborate on this?
There are no shorts panicking. Short positions are unloading and taking profits in C and B. Price is decreasing, with volume (in general) also decreasing. Decreased volume = decreased transactions. The down move is running out of steam.
None of this matters though. The "why" isn't important. There isn't much additional egde, if any, by looking at volume. A simple trendline will suffice. You can see that the lower channel line wasn't being touched by B and A when the downtrend was running out of steam. This is also a hint that the move is ending. Volume isn't needed. Sometimes it's helpful as a visual other times it's not. In the end, it's just adding additional criteria to make a decision instead of just following price itself.
Ooooobviously not all shorts are panicking OR taking profits. Geez. Agree move down was running out of steam as I said previously at A volume was less than C and about equal to B.
As for whether none of this matters or if enough additional edge is gained is for each of us to decide.
At low A initially volume did not increase as at low B although it was similar to low C. Most reversals, that hold, start with muted volume that increase once "everyone" else notices what is happening.
Yes, poor wording on my end regarding shorts panicking. I see no additional edge in volume, and I've studied it. Just trying to save OP the time.
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Usually not this dramatic;
but a ten year chart of URE ,volume tells a lot.Maybe not a frequent help. Buying dips in a bear trend/market is a good way to lose lots of money regardless of volume.
