Académique Documents
Professionnel Documents
Culture Documents
1. Extremely high volume usually marks a turning or a hesitation point.Moderate Volume & Price Down 2. Extremely low volume often immediately precedes extremely high volume. 3. A moderate to wide price spread created by moderate volume is usually bullish (implying few sellers).
4. A wide advance created by strong volume is almost always bullish (implying strong demand). 5. Retests and corrections should be accompanied by generally lower volume. 6. Volume should increase on legitimate breaks from technical patterns.
Bearish Movement 1. Low Volume & Price Up 2. High Volume & Price Up Modestly 3. Moderate Volume & Price Down 4. High Volume & Price Down
5. Time your commitment with a turn in the stock market index. Put your stop-loss in place and relax. Then follow through, until you close out the market position. Use bar charts.
Position Studies
Principles of Interest for Chart Reading
1. Support & Resistance Checks 2. Trending Checks (path of least resistance) 3. Supply & Demand Checks (compare & confirm) 4. Ease of Movement 5. Follow Through 6. Clustering of the closes (no net progress) 7. Cause & Effect 8. Effort vs Result
9. Estimated upside profit potential is at least three times the loss if protective stop is hit
Absorption Areas: price advanced on expanding volume, has a reaction on lesser volume (back ground). Price movement small ranges, holding gains.