How should one apply Price vs. Volume change for predicting market behaviour?Technical Analysts believe that price and volume are closely related. There are four rules for Price vs. Volume change:
1. A rising index with an increasing volume will indicate a bullish market and a "buy" signal as it reflects unsatisfied demand in the market.
2. A falling index with decreasing volume shows a bullish signal.
3. When volume tends to increase during index declines, it is a bearish signal.
4. When volume tends to decrease as the index rises, it is a bearish signal.
No comments:
Post a Comment