Why do bottoms form on low volume?

no one wants to sell at those low prices.

Like if you have people outside a store saying "we want to pay $40 for that shirt," and most of the stores are like "lol, yeah right" but maybe a few stores might sell for that low. So that's the low volume.

Then a few stores are like "well we'll sell you this shirt at $42" and a few people buy it, and then the first store is either out of stock or says "hey, if you guys are gonna pay $42 from our competitor, then you're gonna pay $42 from us, too" and raises their price. And then another store is like "We'll sell them for $43." and so on.











Honestly dude I have no idea. I don't understand volume at all. I made a thread about it in the main forum called like "Teach me volume" or something and posted a lot of pics showing that volume is pretty much random distribution and you can't use it for anything. None of the volume experts really proved me wrong.

There is often, high, medium, and low volume at tops, bottoms, and anywhere in the middle.

I don't believe an correlation can be made at all. Cheers to anyone who is able to.
 
Who said they did? Extreme spike bottoms almost always high volume.. The Chinese torture "bottom" stretches out and all the participants slowly leave.. hence the low volume... seems this is the type we may be in for... Maybe CNBC is off the air when the bottom is in..
 
uh....isnt it high volume sell offs that make a bottom?Like no sellers left to sell?

Yesterdays lo volume was a good indicator that a bottom wasnt in...art cashin and others were all griping about how lo vol it was and that we should expect more downside....
 
he means that in an uptrend the pullbacks will happen on lo volume.Few sellers because they belelive in the uptrend.Conversely rallies on lo vol in a down market should be sold hard.
 
You must log in or register to reply here.
Back
Top