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Volume Stock Chart
Description: When you look at a chart for a major
market index such as the S&P 500, you will see only a history of the price paid for
a basket of stocks. What you don't see is the total volume for the entire S&P
500 minute-by-minute or even day-by-day. What you don't see can hurt you.
Our volume charts offers a complete picture of the market.
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everything we have to say about our charts is true.
Why analyze Stock Volume Charts?
Stock volume charts can help you determine the health of an
existing trend. A moving average of the volume should be taken into
consideration in developing your Market Timing system. A Moving Average is an
indicator that shows the average value of a security's price over a period of
time. This is important for technical analysis because when the current volume
rises above a long term volume moving average this is potentially a signal that
there is increased market activity that will be affecting the price. Thus, it is
important to provide this indicator as an input.
Intraday Volume for stocks helps you see where a stock is
being repeatedly bought as it dips. Likewise, towards the end of a rally, an
expanded range bar together with a spike in volume often signals that the move
is at an end, at least short-term. If you weren't aware of it before, I hope
you're starting to see why volume is a trader's best friend.
Additionally, unlike many indicators, volume is applicable to
every timeframe. How can this be? Simple. Volume is simply a measure of
sentiment, of human nature. And fortunately for us, human nature is the one
ever-present constant of the stock market. Never forget that fact. Once you have
your own emotions under control as a trader, knowledge of this profound fact
will guide you ever after as reliably as the Northern Star guides a lone sailor
across a vast sea. Now you should really be starting to see why volume is a
trader's best friend.
Sign up for our
FREE TRIAL and you will see that
everything we have to say about our charts is true.
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