Home > stocks > Hope Talks. Volume Walks.

Hope Talks. Volume Walks.

In addition to examining weekly charts, it is very useful to pay attention the moves in daily volume for a stock.

While financial news TV channels report on the daily feelings and opinions of unproven stock analysts, the smart money is paying attention to the facts.  Volume is a subject that is worthy of great attention.  Volume spikes and strong price action will tell you whether a stock is under heavy accumulation (institutional buying) or distribution (institutional selling).  Big volume at certain crucial points is essential.

Learn the chart volume patterns to help determine when it is simply too costly to purchase a stock based on simple supply & demand.  It’s a constructive indicator when a stock closes up in price on above-average volume for more weeks than the stock closes down in price on above-average volume while forming a base.

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