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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: Nazbuster who wrote (2063)	12/16/1997 1:31:00 PM
From: Robert Graham	Read Replies (1) \| Respond to of 4969

For example, if the last xxx trades have been slowly inching upwards in price and volume, what guarantees that the price won't suddenly do a massive drop just after you buy like it does for all the rest of us? If I were to make a very broad statement about this in terms of what I have been learning, it is that the ametures look at the price and the pros look at the volume (in relation to the price). This is one reason that the pros can fake out the ametures by moving the price of a stock up or down. The clue here is that this occurs under comparatively low volume. If a stock moves up under increasing or strong volume, look for the reaction. If the normal reaction occurs under comparatively light volume, then this is a sign that the stock is likely to continue its move up. This price to volume action of the stock validates that it is in an uptrend. IMO that is why you will find the prors never to jump on the first rally. They will wait to see what happens on the first, second, or somtimes the third natural reaction before they decide to purchase the stock. Steve, how does this look to you? Bob Graham