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Technology Stocks : Semi Equipment Analysis
SOXX 306.28-1.0%Dec 4 4:00 PM EST

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To: Donald Wennerstrom who wrote (42640)1/13/2009 2:54:09 PM
From: sixty2nds1 Recommendation  Read Replies (1) of 95525
 
<In any event, I have always had a hard time to correlate what to look for in terms of volume to help in making buying and selling decisions. Any discussion of addressing the volume issue by anyone on this thread would be helpful I am sure.>

Hello Don.
Your question about volume is a very good one. IMO Price is King. Many people believe Volume is just as important. I say not Not true. Volume is a distant 3rd. Risk Vs Reward is my #2, but that is another discussion.

Most think of volume in terms of number of buyers vs sellers.
It is more than that.
Somebody has to make a consession.
Either the buyer is paying up or the seller is discounting.

It has helped me to look at volume in terms of average volume. I like to use a 60 day Moving Average on a daily chart. I will use 5 weeks on a weekly and so on. The MA acts like a measuring stick for volume. It makes it easier to "see" what volume is doing....if anything.

One must always remember at least 90 of 100 charts are nothing but noise.

Our mind will tell us different. We lie to ourselves in soooo many subtle ways.
We see what we want to see.
We hear what we want to hear.
If you keep a trading/investment diary the facts expose themselves.
One will accept or reject the facts presented with the same attitude one looks in the mirror.

Later,
60
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