Volume analysis on stocks

Friday, March 26, 2010 Posted by Siva
Here's some good stuff on volume analysis.
http://business.rediff.com/report/2010/mar/26/perfin-when-to-buy-and-sell-shares.htm

Thanks rediff.com

Here is the crux (excerpt from the article ).

The basic rules of volume analysis are as follows:

1. When prices are rising and volume is increasing, the present trend will continue, i.e., prices will continue to rise.
2.When prices are rising and volume is decreasing, the present trend is not likely to continue, i.e., the price rise will decelerate and then turn downward.

3.When prices are falling and volume is increasing, the present trend will continue, i.e., prices will continue to fall.

4.When prices are falling and volume is decreasing, the present trend is not likely to continue, i.e., the price decline will decelerate and then prices will turn upward.

5.When volume is not rising or falling, the effect on price is neutral.
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