Mastering Volume Analysis: Key Indicators for Trading Success
Join Nick Fosco in this insightful session on volume analysis from June 24, 2010. Discover essential strategies for identifying trends, breakouts, and market reversals using volume as a key indicator. Learn about the volume lie detector, and how to differentiate between sustainable and deceptive volume movements. Uncover the significance of volume spikes, pull-backs, and technical patterns, alongside market news impacts. Empower your trading by understanding the truth behind market movements and enhance your decision-making skills.
Mastering Volume Analysis: Key Indicators for Trading Success
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Presentation Transcript
TRADE SCHOOL: Talking Volume Nick Fosco June 24, 2010
VOLUME Agenda • Lie Detector • Trending • Breakout • Head Fake • Blow-off tops / Breakdown Bottoms • Overhead Volume
Lie Detector • Sustained average volume (Truth) • Increasing volume (Truth) • Decreasing volume (Lie) • Sustained low volume (Semi-lie) • Volume spikes • On general market news & non-events (Lie) • With supporting good/bad earning (Truth) • With supporting technical indicators (Truth) • Trend-line break • Consolidation zone • Pull-back • IBD type Chart patterns
TRENDING • Sustained average volume
TRENDING • Sustained average volume
BREAKOUT • Strong Volume w/price move
HEAD FAKE • Strong Price move with Lower Volume
BLOW-OFF TOP / BREAKDOWN BOTTOM • Exponential change in OBV & price
OVERHEAD VOLUME • All previous volume at higher prices