Forum Archive Index - October 2001

[Phaedrus <Phaedrus@techemail.com>]

Nick K,
        You are quite right - it is a very weak uptrend, but why?  Because the 
volume is not confirming the price action. As the price rose, the volume fell. 
For volume to confirm the uptrend, it should have risen. Note how the volume 
rose on the day the price fell, though. Another indication that there may be a 
lot of latent selling pressure. In a strong Uptrend, volume is higher on Up 
days, and lower on Down days.
  Another point of interest is that the last three days have been Doji 
candlesticks. These are formed when the day Opens and Closes at the same price. 
As you would expect, this means that buyers and sellers are exactly evenly 
matched, indicating indecision in the market. The longer the candlestick 
shadows, the greater the indecision. Doji usually warn of a change in trend, 
and are thus often found at turning points.
        Phaedrus.

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