This chart is a perfect
example of how important volume is in big price moves. As
the stock price drops, more red bars become predominate.
As the price rises, green bars become predominate.
It is important to notice that as volume drops off as prices
decline, a base is established where prices can move higher.
Most of the time, these large volume spikes are related to
important news items. If you notice how the prices move higher
after the large volume spike, you can start to realize how
these changes become market trading opportunities and how
the strategies created by our professional traders can help
you profit from these opportunities. Notice the date around
the middle of February.
Keep in mind that technical analysis does not take into
account new items but even the most astute trader will never
be able to catch a trade given the news. |
