Newbridge Networks Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Newbridge Networks

NN 16.12

+1.6%

Dec 8 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: pat mudge who wrote (8560)	12/15/1998 4:54:00 PM
From: Ed Frye	of 18016

You are very welcome Pat. Re: Volume. Your sense is quite correct. Read below. "The theory behind volume states that the greater the volume, the greater the force behind the move. As long as the volume increases, the current price trend should continue." This is what we saw during the recent run-up. "If, however, volume declines, as a price trend progresses, there is less reason to believe the trend will continue." This is what we saw at the top. "Volume can also be useful in confirming tops and bottoms. A light volume test of a support level suggests a diminution of selling force and is, consequently, bullish." This describes our current situation. "Conversely, a light volume test of a previous high is bearish since it demonstrates a weakness in buying power." In conclusion, it was bullish that volume was heavy on the way up and it is bullish that volume is low during this retracement. When that bullishness reasserts itself in the price I can't tell you :) ed

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next