/biz/ - Business & Finance

>>22796452
if volume is higher than average it could be weakness especially after a prolonged move. If its early in the trend it could be absorption. Take a look at the pic i posted. The histogram at the bottom is the volume with yellow orange and red being higher than average. The signals on the chart (ss and sw) are high volume bars. Notice how price goes down after sw and goes up after ss or at least pauses. high volume doesnt mean a reversal but it just means hidden buying or selling. Following high volume, price is tested for any more sellers or buys before it resumes in the direction (absorption). If its after a long move, people are fomoing as the guys who bought at the bottom are dumping their bags. Hence the high volume: noobs buying top while smart money is dumping.