Trading volume is very useful to identify market tops and market bottoms.
Above average volume, following a strong market rise, points to a market top.For example, see the chart of GLD. Strong volume took place in March and now. What does it tell you for the future of gold?
Above average volume, following a sharp market decline, suggests a market bottom is imminent. Volume has increased steadily during the recent market decline and has reached above average levels.
What's next for the market? Is this the capitulation we were waiting for?
More, much more when you subscribe to The Peter Dag Portfolio on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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