High Volume with low price gain?

[RobinHood]

first examples that come to mind are:

climactic move = ERS(U.S STOCK) MAY 05, pigs rushing in for late buy, institutions dumping on them with the tide.


ABNORMAL price break = BKHM 17/04/06 - holding from here would've been follish if you bought from the previous consolidation pattern. (this is abnormal price action).


heavy breaking of the 50-dma and 200-dma is self-explenatory look for heavier volume and strong breakdown. Then analyse overall pattern of chart on daily and weekly.


Although I trade U.S stocks I can say that it T.A is everywhere since it's psychology.

If you want to get a really to the point an an interesting grounding on T.A read How to Make money in stocks - they have a whole chapter on patterns detailing price-action. It's recommended by Zanger who turned 11k-42million in 3 years, SeoulJoe, My mentor etc PM me for details.

 

[barney]

Barney

What is a signal and how important is that to what you want to achieve?

Hi Snake (That picture of Kurt Russell still frightens me.........It is Kurt Russell....isn't it?? )

I like the way you "say a lot" without saying "too" much!

Re the signals etc......I was kinda thinking out a loud while asking a question/looking for advice........I was thinking purely about chart analysis when "contemplating" the importance of Volume. Sometimes (from my limited experience) a chart can show positive "signals"/indicators......eg Rising RSI, positve Directional Movement Index etc. , but often, unless these "signals" are accompanied by "Volume" , they can be of less significance.........(same question again)........Is that fair comment/ on the "right" track? Cheers, Barney.

 

[tech/a]

Nick.

Sold out of HDR on open this morning from the preopen.

Notice massive volume and very small movement for the last hr or so.
A 60% rise is/was pretty attractive.
Is it likely that Insto's are selling into the enthusiasm?,It would be pretty attractive to them as well I'd have thought.

 

[It's Snake Pliskin]

Hi Snake (That picture of Kurt Russell still frightens me.........It is Kurt Russell....isn't it?? )

I like the way you "say a lot" without saying "too" much!

Re the signals etc......I was kinda thinking out a loud while asking a question/looking for advice........I was thinking purely about chart analysis when "contemplating" the importance of Volume. Sometimes (from my limited experience) a chart can show positive "signals"/indicators......eg Rising RSI, positve Directional Movement Index etc. , but often, unless these "signals" are accompanied by "Volume" , they can be of less significance.........(same question again)........Is that fair comment/ on the "right" track? Cheers, Barney.

Sorry Barney missed this post of yours. Actually your avatar is pretty scarry too

Yes it is Kurt Russell the tough guy in the two movies.

Weight moves things generally.(I`ll be vague with "generally" because volume studies isn`t so simple as many would think) All those averages don`t mean much in the absense of pure numbers of participation or "weight". All those tech tools do is show what price can show you and where you are at.

Hope this helps.
Snake

 

[tech/a]

Watching Depth there are many 500,000 orders being filled on the buy side by 20,000-50,000 sellers on the other.

Perhaps a case of buying those sellers who have been bottom draw for quite a while.

 

[barney]

All those tech tools do is show what price can show you and where you are at.

Hope this helps.
Snake[/QUOTE]


Hi Snake, if I have gotten this wrong, can you elaborate a little more on what you mean??........Are you saying that "price" basically tells most of the "story" by itself, and that when significant weight (volume) is added to the mix, then we can "generally" (a reasonable % of the time) get the overall picture of what is going on?

I gather what you are saying in a sense is, "experience" lets you "see" things clearly, without the need for lots of "complications/indicators"? Cheers, Barney

 

[RobinHood]

Price AND Volume is all you need. All indicators are derived from that anyway...

you dont need to understand or over-analyse everything, you can do that at uni. Just know what to look out for and start making money off it....



heavy volume no price progress, during uptrend = institutions selling
heavy volume no price progress, during downtrend = institutional support
heavy volume price down = BAD
heavy volume price up = GOOd

Read this in context of coarse, is a heavy down day breaking any key support lines? 50-dma is commonly used by institutions to support a stock, is it holding it?


You'll come to understand this when you start making money off it...

 

[It's Snake Pliskin]

All those tech tools do is show what price can show you and where you are at.

Hope this helps.
Snake

Hi Snake, if I have gotten this wrong, can you elaborate a little more on what you mean??........Are you saying that "price" basically tells most of the "story" by itself, and that when significant weight (volume) is added to the mix, then we can "generally" (a reasonable % of the time) get the overall picture of what is going on?

I gather what you are saying in a sense is, "experience" lets you "see" things clearly, without the need for lots of "complications/indicators"? Cheers, Barney

Barney,

See Robinhood`s post above.

Snake

 

[barney]

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Barney,

See Robinhood`s post above.

Snake

Thanks R/Hood and Snake, This is the kind of stuff which is of great value to me as a learner! Is this kind of stuff detailed in particular books etc. that you can recommend? Cheers Barney.