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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: J Mako who wrote (44509)9/22/2011 5:38:24 PM
From: Sergio H  Respond to of 78673
 
Not bad. From that site:

<When volume is high, those traders unlucky enough to be losing money in their positions feel the sharp sting of their losses. In order to alleviate the pain, these traders quickly close their positions (at a loss). As losers exit the market, a trend based on high volume is likely to be short lived. But a trend based on moderate volume can last an extremely long time since small losses can accumulate over time into what may become very large losses.>

This is what I was trying to point out. Large volume on a new low is a great entry point. Low to avg. volume on news lows is consistent with buying into a trend that may not be a good idea. These days more and more trading volume is computer driven and is based on adhered to beliefs of market philosophy or technical analyses and it tends to have a self fulfilling prophesy that makes it work out. Its good to be aware of the basics because that's whats going on. Anyway, lets refrain from more TA on this thread as it diverges from the board topic.