To: t2 who wrote (6325 ) 2/15/2000 9:20:00 PM From: Boplicity Respond to
It's the number of investors and conviction behind the moves that matter. Higher vol. greater number of investors and higher conviction, the more shares that are owned. Say you had a large vol. day and no movement at high, that would say to me that the stock has top, or sometimes after number of days of shooting higher, you get a blow off, all the buying is used up and the stock starts down or is unchanged for the day. Now that the stock has topped, higher vol. as it is going down, shows that the stock is gaining momentum on the downside, more and more investors are seeing that the stock is dropping so they are selling trying to keep all the gains from going out the window. A light vol. downtrend would show a lack of conviction of the sellers and less so buyers so the stock is dropping but with out conviction. High vol. at the bottom and reversal is just like high vol. at the top but with selling being used up. Normally it takes two tires to make a bottom, since sellers that didn't get out, want to at all cost now that they think they are getting a better deal, causing the stock to drop again, this is called a double bottom.
