Silicon Investor (SI) -- The First Internet Community

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.

Strategies & Market Trends : Strictly Buy and Sell Set Ups -- Ignore unavailable to you. Want to Upgrade?

To: Zincman who wrote (13336)	6/27/2008 7:39:27 PM
From: chowder	Read Replies (1) \| Respond to of 13449

You don't need a specific amount of volume to determine if price will head up and break through. All you really need to see is increasing volume. You want to see that the recent buying volume days are higher than the recent selling volume days. Increased buying is what you need. Now, on a break out to new highs, you want to see volume at least 50% above average. This will often times confirm that a new leg up is coming. You won't see this type of volume unless institutions are buying. The retail trader or investor isn't inclined to buy break outs. They have been conditioned to think that buy low and sell high means you buy after a significant price pull back. So, the retail trader isn't behind high volume break outs. Institutions are. And, institutions usually have to build significant sized positions so, you can expect price to continue higher as they add to their positions.