alankew said:MRE seems to be picking up speed on reasonable volume
Fallen Back from 2.80, Market Depth not so positive... don't look like MRE is shooting up today...kennas said:Breakouts supposed to occur with increased volume. Otherwise, could be a false breakout. Will be interesting to see the final volume today. Also, volume suppose to accumulate leading to the breakout which hasn't seemed to occur with MRE. So, perhaps we've jumped the gun by calling this an 'oustanding' breakout.
Here is a definition of breakout and volume:
Traders often rely on volume to confirm stock trading patterns before they commit to a trade. Unless volume confirms a pattern or a breakout, it may be a false breakout that lures in traders who have not done sufficient homework. However, since short term volume can be erratic, trendlines should be drawn on volume charts to indicate the trend of volume for confirmations of trends and patterns.
A sustained uptrend should have volume rising as the price is rising. If the volume is decreasing as the price is rising, it indicates a weakening of the trend that could lead to a reversal of trend.
When a stock breaks through a resistance level, it should breakout with volume well above normal volume to confirm a breakout.
When a stock breaks down below a support level, it should breakout with volume well above normal volume to confirm a breakout.
When a stock has completed a trading pattern, such as a head-and-shoulders pattern, it should complete with higher than normal volume to confirm the pattern.
A sustained downtrend can end with very high volume. If the retest of support at the level of the selling climax is tested with low volume, then it will probably hold.
It behooves traders to look at volume to confirm movements and trends before they commit to trades. A thorough analysis helps maximize profits and minimize risks.
kennas said:I would actually call it a breakout now, for whatever reason.
Not so stupid.
Makavel said:haha your one of those investors who have no clue
YOUNG_TRADER said:Learn the ropes, I'd be fairly confident saying Kennas could buy you many times over
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