eyeopening

Great post, Stock Specialist!

One additional factor that should be considered when deciding when to buy or sell is stock volume. Volume is important because it tends to confirm the current trend. Volume should move WITH the trend. On an upward move, volume should increase, while on a downward movement volume should decrease if the trend is a strong one. One of the first signs that a trend may be weakening is a drop off in volume.

If a stock is moving UP on low volume, this might suggest a weakening of the trend and might signal that it's time to get out of the trade. Conversely, a stock that moves DOWN on low volume suggests that the downward trend is weakening and the stock may be due for a reversal.


When developing your trading system, volume can be an excellent indicator to add to your arsenal of tools.


Best of luck in the markets. :-)


Apollo
Trade Like a Pro!