Trading volume has enormous importance as a technical indicator. These are the patterns to watch.
Rising volume and the market fails to rise and starts trading in a narrow range means distribution. The strong hands are selling stocks to the latecomers. This is a sign of an incipient top.
Rising volume and rising stock prices represent a favorable pattern for the market. Beware, however, of declining volume after such a prolonged event.
Where do we stand now? Volume is very low.
More on http://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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