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Strategies & Market Trends : True face of China -- A Modern Kaleidoscope

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To: hui zhou who wrote (2945)3/2/2008 5:40:40 PM
From: RealMuLan  Read Replies (1) of 12464
 
Volume itself has NEVER been an useful indicator. Along with the stock price, it is a useful indicator in the following cases:

--big volume with stock price down a lot means distribution, especially for small cap companies. It is usually a good idea to follow or you would end up a bag holder.

--big volume with stock price not going anywhere means distribution too, usually means institutions are selling their shares while holding the price up before they finish dumping. This happens quite often with big cap companies.

--for some beaten down stocks, low volume with stock price not moving much, with no bad news, usually is a good time to buy.
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