Rising price, falling volume...not bullish

[Rickshaw Man]

It is what it is, rising prices with lower volume is not the most bullish of scenarios. We want to see just the opposite. Rising prices with ever-rising volume.

I noticed the FOMC has not updated its weekly balance sheet trend. It's typically updated Thursday evening. Don't be surprised if they stop updating it. They have done it before. Remember the FOMC said the will start reducing their balance sheet starting in June.

 

[SunTrader]

As usual on a Thursday (yesterday):-

2022-05-25: 8,914,281(+ more)
Updated: 3:33 PM CDT

First time breaking below a prior swing low in like ... forever.

 

[nooby_mcnoob]

Falling volume is how bull markets are made.

To look for bottoms, you want to see heavy volume on red days, not green days.

 

[GlobalMacro90]

With derivatives, ETFs, SMA, structured products and the like, you can get exposure many different ways. that makes volume analysis like this rather meaningless IMO

 

[nooby_mcnoob]

I'd say the areas lined up here with volume look like a good short entry. Those who bought that dip will be looking to get out.

 

[Rickshaw Man]

View attachment 285644 As usual on a Thursday (yesterday):-

2022-05-25: 8,914,281(+ more)
Updated: 3:33 PM CDT

First time breaking below a prior swing low in like ... forever.

What are we looking at here?

 

[murray t turtle]

Falling volume is how bull markets are made.

To look for bottoms, you want to see heavy volume on red days, not green days.

%%
THAT;
+ rising volume + price= bullish / falling volume + rise of price= bullish /
+ average volume + average rise of price price/LOL

 

[MKTrader]

I guess someone hasn't been paying attention. Practically every strong rally and market recovery has followed the "rising price on low volume pattern" for the last 20 years (maybe much longer). Sure, there's occasionally a strong volume day near a bottom or other times, but the general pattern is very consistent with "climbing a wall of worry." Any "elite" trader should've noticed this by now.

Note: this isn't a call that we've hit a long-term bottom, that stocks will go higher/lower or anything else. Just a correction to a common fallacy of market newbies.

 

[Rickshaw Man]

With derivatives, ETFs, SMA, structured products and the like, you can get exposure many different ways. that makes volume analysis like this rather meaningless IMO

Over the past 20 years, I've learned that technical analysis is subjective. It all depends on the prevailing trend. Trade in the direction of the prevailing trend. Swim with the current. Look for chart setups in the direction of the prevailing trend.

Rising prices counter to the prevailing trend with weaker and weaker volume is IMO very bearish. Im pointing it out trying to help. Your argument is without merit.

 

[SunTrader]

What are we looking at here?

https://fred.stlouisfed.org/series/WALCL