Forum Archive Index - February 2004

[Phaedrus <Phaedrus@techemail.com>]

Bill,
     Volume measures the intensity or urgency behind a price move. By 
monitoring price and volume together we are measuring pressure. Usually, volume 
precedes price. 
 So, if we look at the November 2002 volume spike (on an up-day) that you 
mention (not shown on the chart as posted) we see that it was followed by a 
sustantial price rise over the following couple of months. Sure, this trend 
eventually came to an end (they all do!) but that does not detract from the 
accuracy and usefulness of the observation. 
 Similarly, the big volume spike shown in August was also on an up-day, and has 
again been followed by a substantial price rise. The current uptrend will end 
at some stage, but both of these high-volume up-days gave excellent pointers as 
to the near-term price movement of this stock.
 You really can't ask for more than that.
                       Phaedrus.



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