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To: Crimson Ghost who wrote (35833)1/26/1999 11:29:00 AM
From: epicure  Read Replies (2) | Respond to of 95453
 
High volume selloffs are considered classically MUCH more bearish than low volume selloffs. Low volume selloffs are, in fact, bullish. Just as price advances on low volume can be considered a bull trap, price declines on low volume can often be a bear trap.



To: Crimson Ghost who wrote (35833)1/26/1999 11:41:00 AM
From: Hrothgar  Respond to of 95453
 
In my experience, a low volume sell off usually equates with a smaller number of sellers. This is the opposite of high volume accumulation in a stock. High volume accumulation is usually healthy, showing increased interest in buying a stock while it increases. The opposite, lower volume on a sell off, usually indicates holders are less willing to part with the stock at current levels indicating confidence in an undervalued company.