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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Jon Koplik who wrote (47732)	4/22/2000 10:07:00 PM
From: TheKelster	Respond to of 99985

Respectfully, I point out it is just the opposite. When I pointed out what the players were doing out there in lala land, I did not say that volume was up. In fact volume has remained muted. You make a strong statement that there has been a reduction in volume. I agree 100%. I don't think there is much new trading. That is not the same as suggesting that many are still holding positions they should have closed weeks ago. I urge you to review the Technical Analysis book I named in my post. On p.66 it begins "Volume Is Important" "It is always to be watched as a vital part of the total picture.". Now the kicker, p68 "The real tip-off appears when activity fails to pick up appreciably on the the third rally, the right shoulder. If the market remains dull as prices recover (at which stage you can draw a tentative "neckline" on your chart) and if, as they approach the approximate level of the left shoulder top and begin to round over, volume is still relatively small, your Head-and-Shoulders top is at least 75% complete." This is exactly what we see happening. Your post is added evidence from a regular trader and beautifully corroborates my train of thought. That's not very scientific either, but then, scientist and speculator don't often go together in the same sentence. When you next see the volume rise significantly we will likely be in the next major move, up or down.