A medium range move on low volume shows lack of participation from "profesional money". I see it at the moment, that nobody really wants to sell, because they are unsure at the moment, but there is not a huge amount of demand. The price will still go up because sellers are moving there orders up. So supply is available from a higher price.
Today has brought large volume with the move though.
A medium range move on low volume shows lack of participation from "profesional money". I see it at the moment, that nobody really wants to sell, because they are unsure at the moment, but there is not a huge amount of demand. The price will still go up because sellers are moving there orders up. So supply is available from a higher price.
Today has brought large volume with the move though.
lol, maybe the "professional money" already has their fill from lower prices and doesn't need to buy at these levels but they aren't selling either so maybe there is just no supply at these levels and volume doesn't need to come in to support prices.
It seems to be a common misconception that low volume is a bad thing. But as shown by today's move, when demand does come in at a support area with no supply you get a strong move up.
The question now becomes where will supply come in and will there be demand at that level?
lol, maybe the "professional money" already has their fill from lower prices and doesn't need to buy at these levels but they aren't selling either so maybe there is just no supply at these levels and volume doesn't need to come in to support prices.
It seems to be a common misconception that low volume is a bad thing. But as shown by today's move, when demand does come in at a support area with no supply you get a strong move up.
I never said that low volume was a bad thing? I said in this context it isnt a good thing. Im of the opinion, that you need high volume confirmations at or near reversal points. Low volume can be a good thing, but in this context it wasnt what i was looking for. High spread low voume days can be great indicators or price action.
Todays action saw increased volume, which we can now intepret as demand.
Professional money could very well have been filled earlier, im just giving one scenario, there are several which can explain whats happened.
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