Volume Analysis

[ashc48]

attachment

 

[Grob109]

Quote from ashc48:

As we speak, I will shortly be attaching a chart for today's action. Note the pronounced VR peak at around 10 am yesterday. This was preceded by a deep VR valley the previous day.

These sharp almost equal peaks and valleys occur both near the beginning and end of major up moves and down moves. I would consider the sharp up move at the beginning of a rally as smart money buying, the peak at the end the suckers coming in when the rally makes a last gasp for another high.

The VR peak of yesterday was higher than the on 2/02. At that time the rally failed at 1140. It is my prediction ( at a level of 1138) that this rally will break that resistance.

Ash

The green/white line chart at the bottom is really nifty. Good work.

 

[maxpi]

Quote from easyrider:

Like everything else it seems to be more art than science. What confuses me about it is that for every buyer theres a seller and huge volume mean a lot of people are buying AND a lot of people are selling. Who's right? I"ll have to get your book and check it out. I would certainly love to find some leading value in it.

At times, market makers have to provide the liquidity.

Max