Price volume analysis for retail investors

Price volume analysis for retail investors


Price volume analysis for retail investors


  1. Use Price volume analysis as an exhaustion indicator
  2. Let say index has a trading volume of 1000 in the up move and 500 in a down move
  3. When price moves up with high volume in a small time frame index will be at a high point and when price moves down with high volume in a small time frame index will be a low point.
  4. The volume shows how hard the index is moving in a particular direction at a particular time
  5. When everyone tries to enter the market at the same time the index will move at a high point
  6. When everyone tries to exit the market at the same time the index will move  at a low point

  1. Condition for up move reversal.

  1. Note the volume from one high to another. Volume at the other high is lower than the previous high indicating negative divergence.
  2. It suggests that the force in the second high is less than the previous then that the market should reverse.
  3. This worked with both up move and in the down move.

  1. Condition for down move reversal.

  1. Note the low point of stock with high volume
  2. When the stock price tries to test the low Again check the volume
  3. If the volume in the second down move is less than the previous down move then a bullish divergence is created and stock can bounce back from the low point.
  4. This rule will not change from one-time frame to another 



Thank you for visiting our website www.retailbroker.in. Please ask or share your suggestions regarding our blogs and inputs regarding stock market.Share the blog in your social media profile and with your friends to educate about stock market.


Post a Comment

2 Comments

  1. hi your web site excel sheet is give great knowledge , please make future rollover data analysis excel sheet and share it

    ReplyDelete
  2. I don't understand the points mentioned on the condition for up move reversal. can anyone please explain it in detail.

    ReplyDelete

Please don't use any spam links on comment box.Thank you for visiting retailbroker.in. We will revert back to you soon