Quote:
Originally Posted by cire2222
one thing i always keep in mind too is, volume is not always right. Many see big volume in a certain price range or at a given time and think that big buying volume signals a bottom and it's time to get in. The problem I have always had with that is you would be assuming that the big buyers are dead on correct. Now concidering that big money funds are happy just to beat the S&P500 I just can't count on them to be spot on very often.
Im not saying volume is useless but a simple 'big up day + big volume = market will continue to move higher' theory shouldn't be trusted.
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No doubt. And on the other side of the coin...in the past
I would look at big up days on big volume as hidden selling which is often true. But sometimes it's not, or it is but they aren't done selling the rally. You can really get your ass handed to you in a hurry stepping in front of a moving train! I now find low volume just as important if not more so.
