Trend

[firewalker]

	Quote:	DbPhoenix
	As I pointed out in post 3, volume is largely irrelevant unless one is at a point where it becomes relevant, i.e., an important test of some sort. What is more important is the movement of price. Price can move dramatically either up or down on very little volume at all, so avoiding a trade just because volume is "low" is unjustified.

I wasn't implying you should avoid the trade, but it's worth the observation imo.

	Quote:	DbPhoenix
	Much is written about volume that is misleading. This arises out of seeing volume as an indicator, which in turn is the result of plotting it as a bar. But volume simply tracks trader behavior (which is why I'm more interested in the volume of advancers v the volume of decliners in the indices rather than "volume" in them as a whole). Focusing on that will help the trader put it in its place.

I'm not saying single bars are important, but in a 'healthy' uptrend wouldn't one want to see volume decreasing on the pauses or moves against the trend and picking up again along the trend? Or have you changed your view on this and do you no longer consider it of any importance?

[DbPhoenix]

	Quote:	firewalker
	I'm not saying single bars are important, but in a 'healthy' uptrend wouldn't one want to see volume decreasing on the pauses or moves against the trend and picking up again along the trend?

Yes, but that doesn't have anything to do bars. One sees this motion even better by plotting volume as a line.

[Tannism]

Hi Firewalker.
Here is a NZ chart I click through once in awhile. It shows volume and issues traded differences for about a decade.

The bottom box is the isssues/vol ratio.

TannisM

[DbPhoenix]

Another look at the forest. This is two years rather than four (the first post) in order to make the TL placement more accurate.

If we can't move back above these TLs and hold there (in the Dow and S&P), then this was just a bear market rally after all.

It should also be noted with regard to Dow Theory that, except for a couple of truckers, the only thing holding the Transport Average up is the rails.

As for the sectors, financials and healthcare continue to do poorly, energy and utilities continue to do well. The rest are having problems of one sort or another.

[Tannism]

We have a little Mamis divergence in up and down volume approaching the yearly lows.