I wonder if you have realized this
All the data you get daily from the stock exchange in financial technical analysis charts are nothing more than:
1.Price
2.Volume
Thats right. Only the price and the number of transactions are known daily and captured as charts for financial technical analysis. Even though volume is such an important element, very few technical traders make full use of it in helping them with their trade entries and exit. This is because most technical traders simply do not know how to make sense of the daily volume bars in relation to the price action. I present here a simple chart explaining what the price versus volume behavior stand for and hope it helps you in making more sense in your financial technical analysis.
Financial Technical Analysis Using Volume Defined
Rising Price + Rising Volume = Healthy Bull trend
Rising Price + Declinging volume = Bull trend drying up, hitting ceiling soon
Declining Price + Rising Volume = Healthy Bear Trend
Declining Price + Declining Volume = Bear tredn drying up, bottoming soon.
Declining Price + Sudden Volume surge = Selling Climax, short term...
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