Rising price, falling volume...not bullish

[nooby_mcnoob]

Also...

Falling volume is how bear markets are made.

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


Bigger questions...
what is the basis used for determining "bottom", "falling", "heavy", and "top"?
do the above rules apply to all time frames?

To be clear, I'm not saying we are in a bull market.

I'm saying bull markets have rising prices on low volume. So just because it's going up on low volume isn't anything special *except* it's a bear market - though technically S&P is not a 20% down bear market and neither is DOW I think. So only Nasdaq.

 

[murray t turtle]

To be clear, I'm not saying we are in a bull market.

I'm saying bull markets have rising prices on low volume. So just because it's going up on low volume isn't anything special *except* it's a bear market -...... So only Nasdaq.

%%
THAT'S clear; + says volumes \so to speak
I dont have an opinion on Dow\
SPY has closed enough time below 200 dma= bear.
BIG Problem with OP Headline; when people sell all they want for 2 days or so, doesnt take much volume to push prices up/bullish. I think that OP gentleman gets confused because he uses same color for all his volume HUH?? Must be a custom made chart\LOL

 

[Rickshaw Man]

No, I'm not wasting time debating with someone who's been on here for years and hasn't noticed the most basic of chart patterns. Do the work yourself. Look at every recovery from, say 5% or greater corrections in the last 20 years. Look at bullish markets from 2003-2007 and 2009 to the present and notice how often the indexes climb higher on low volume...and how the volume is strongest on selloffs. There have even been many discussions here about it (staring in the 2003-20007 period).

We were in an uptrend with the FOMC showering trillions on the markets. Last time I look, we were trending down and the FOMC is raising rates and cutting QE. We are no longer in the type of market you loosely explained. Lord this place has gone down hill.

WARNING TO NEW TRADERS....there are people who pose as traders whose only job is to keep you engaged and posting on this site. Just like this clown did with me. USE THE IGNORE FEATURE.

 

[SunTrader]

$SPX Up vs Down Volume today was +91.74%, and for the week +78.10% which is the strongest weekly number in over 4 years.

 

[MKTrader]

We were in an uptrend with the FOMC showering trillions on the markets. Last time I look, we were trending down and the FOMC is raising rates and cutting QE. We are no longer in the type of market you loosely explained. Lord this place has gone down hill.

WARNING TO NEW TRADERS....there are people who pose as traders whose only job is to keep you engaged and posting on this site. Just like this clown did with me. USE THE IGNORE FEATURE.

Projection much? First you change your whole narrative "iT wAs DifFeREnT tHEn cAuzE tHe fEd." So you basically admitted your whole "price going up on low volume is soooo bearish!" (disproven by mounds of past data/charts) is bunk. Then you describe exactly the type of unmitigated ignorance you've displayed in this thread and ascribe it to others.

Go back to your punch-clocking job or gov't dole collection. It's clear who the fake trader is. What a cluster and epic failure of a thread.

 

[themickey]

A couple of things..... from my experience....

When price climbs out of a bottom on low volume its often very bullish, this as, the bottom has most fooled, there's a reluctance to enter, cash is sidelined, price begins to climb a wall of worry, often imo, the climb is slow and long duration. The harder price runs from a bottom rally on high volume usually the quicker it fizzles out.

This is May, next few months usually a low volume and laboring market which doesn't pick up till November.

Bottoms are often volatile and very difficult to know what will happen next, usually TA doesn't work.

 

[Big AAPL]

True...but it works intraday

 

[murray t turtle]

$SPX Up vs Down Volume today was +91.74%, and for the week +78.10% which is the strongest weekly number in over 4 years.

%%
Price up so much\
looks like a bear rally/ good daytrading + exit day. Personally i would rather see falling prices with any kind of volume= bearish or max bearish.
That's the main trend+ medium trend for SPY+ QQQ[bearish , on any kind of volume]

 

[Amatrue]

If you apply some logic you will realize that rising prices with low volume in a downtrend means that there is little selling resistance. That means people are unwilling to sell as they believe the bottom is in and prices will continue higher and buyers are able to push the prices up with ease, hence the low volume. As the uptrend continues, you should expect slowing volume and volatility as sellers would expect prices to continue higher and choose to sell at a higher price. Meanwhile, buyers that are on the sideline would be pushing the prices higher due to FOMO, and it won't take much volume to push prices higher due to low selling resistance.

On the other hand, applying your logic of rising prices and rising volume in a downtrend means high selling resistance. Sellers believe the market has not bottomed and prices won't go any higher making it harder for buyers to push prices higher, resulting in higher volume. This is why higher volume and higher prices do not result in a solid uptrend and the trend would instead tire out much quicker due to buyers losing strength to push prices higher against strong selling resistance.

 

[SunTrader]

Up days need to be compared to prior up days and vice versa, and IMO more significantly up/down percentages. Just at looking increasing/decreasing volume is not good enough.

In baseball beating a bad team with a bad pitcher and many injured players out by 10 runs is less significant than beating a good team with a good pitcher and all key players available by 10 runs.

Need to be nuanced about it.