Price and Volume

[MC]

More to come...but just know it's all you need besides the traders mindset.

[Timmyb]

And to go along with taht a few quotes:

“Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.”

"Trade what you see, Not what you think"

"If you're going to panic, panic early."

"If you find yourself in the bottom of a deep hole, the first thing to do is stop digging."

"The key is consistency and discipline. Almost anybody can make up a list of rules that are 80% as good as what we taught. What they can't do is give (people) the confidence to stick to those rules even when things are going bad." Richard Dennis, on Turtle Trading

"Experienced traders control risk, inexperienced traders chase gains." -Alan Farley


"The market can remain irrational longer than you can remain solvent" - John Maynard Keynes

"There are only 3 rules...Rule number 1:- Don't lose money. Rule number 2:- don't forget rule number 1. Rule number 3:- the only thing you should be holding overnight is your dick." Trader Jack

[DJ South]

If I learn anything from this forum it will be how increased/decreased volume, and just volume in general, correlates with a stock and its price. MC is always pulling those fancy terms like "volume pullback" and I want to know what they could possibly mean for the stock.

Is there a site that lists a whole bunch of situations and what they usually mean?

IE increased volume on a red candlestick is good/bad. volume pullback when the stock is positive is good/bad, ect ect.

[Timmyb]

MC is the king of the volume interpretation. How I use it is this. I like to see a volume spike at bottoms and tops. Think of it as the buyers or sellers finally exhaled their last breath and basially anyone left to get in or out is done. At that point the market begins to turn, and will typically represent a bottom or top.

[MC]

That's pretty good Timmy, except the king part...I'm just a noob with a insane desire to learn.

We know I have an outlook of manipulation and big money control, the reality is that volume push is the hand off.
Abnormal volume is the name of the game. Often you will see real big volume which signals shares moving from retail to big money at lows or vice versa at peaks. The next test of that level could be on super low volume (no demand) or medium but lower volume (shorts going in on a peak for example).
Sometimes there is no test and you get a V bottom with a rapid change of sentiment. There is no steadfast answer because of how unique every moment in the market is, it's never really the same.

DJ the key is just to run scans on big volume and watch the outcome unfold. Like every other technique you need to immerse yourself and try to see the most common reaction to each type of volume and candle. Build some signals based on your observations and then formulate a game plan.

Candle psychology is pretty basic unless you get real far into the formations etc...
I just look for long wicks on candles to show pressures, the longer the wick and the bigger the volume often means more pressure has been applied.
The bigger the candle the better it is to gauge support and resistance. Big candles are also good to watch for and spot a doji or smaller candle the next day. This shows the pressure has turned to indecision and a trend reversal could be coming. Usually you get confirmation one way or the other the very next day.

So as I say, look at the market as an auction and try to feel what the candle means. In other words if you were a holder of shares long, how would what you are watching unfold make you feel. On my links page I have a candle formation site, also stockcharts has a good section for candles in their university.

If you have specific questions or examples you want me to try and interpret fire away.