Low volume breaks and high range days - Aussie Stock Forums

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  1. #1

    Default Low volume breaks and high range days

    Quote Originally Posted by tech/a View Post
    Look also at breaks of Resistance by a gap even on low volume.
    Low volume breaks are often longer lasting than high volume.

    Low volume tells more than high volume in certain circumstances.
    Everyone gets caught in the high volume hype, when in fact its often saying something,quite contrary to expectation.
    This comment got me thinking, actually pretty much anything gets me thinking, but i want to have a look at what this actually means to everyone.

    If we have a low volume high range day, is this an indication of a complete absence of strong handed sellers (institutions, major players,) and presence of only weak hands such as day traders and mums and dads willing to sell?

    To me this could mean one of three things.

    (1) either all the major players are already out, so there is no major selling left, which could be a really good thing.
    (2) There is no interest from major players so breakout may be limited.
    (3) All the major players are in, and no way do they want to sell, so its up to the mums and dads to get on board to drive the prices higher with no major party wanting to sell.

    So then how do we identify these scenarios?
    i believe there are volume indications leading up to these points which can tell us what the scenario is.

    Please shares your views, especially you tech

  2. #2

    Default Re: Low volume breaks and high range days

    Something Ive been working on for sometime.
    I have employed some people working on this with me so I really am reluctant to share any more at this point.

    Gotta keep something for myself!
    I'm sure you'll understand.

    But well worth looking at for those who see some merit.

  3. #3

    Default Re: Low volume breaks and high range days

    Well last night, i studied quite a few charts with "basing" patterns and noticed some consistent volume/price correlations between them all.

    I have now created a strategy around it, based on it.

    It is quite interesting, becuase it is almost the opposite to what you think it would be

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