Stock Market Analysis Tools - Learn About The Price And Volume Connection Video

Testing Stock Trading Tools Volume Analysis Visit MarketGeeks.com

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Tested 30 Years Of Stock Data Tested Every Major Indicator And Strategy

Based Entirely On Computer Data Results Were Objective

No Human Intervention

Relationship Between Volume And Price Volume increase without any type of news or fundamental reports stimulating the stock or the stock sector Resulted in 78% of the stocks experiencing a large price changes within 2 trading days of the volume spike

Volume Increases With No News The best part is out of that number 8 out of 10 stocks remained at the new price level while only 2 stocks went back to the previous price level after 5 trading days. This means that when volume drastically increases and stocks begin moving without any outside news that would explain the move, they end up either continuing moving or stay at that new price level for about 1 week.

Volume Increases With News The stock experienced a dramatic price change about 85% of the time. But only 3 out of 10 stocks remained at the new price level while 7 stocks went back to their previous price level. When prices move either up or down when earnings or other information related to that stock or stock sector is released, the stock has already moved and will reverse direction very quickly to go back to the previous price levels. Copyright ÂŠ 2007-2013 Market Geeks, LLC. All Rights Reserved.

Ask What Is Driving Volume Higher? Volume rise caused by news is not a good reason to enter position. Most news driven volume reverses within 5 days. Volume rise that is not caused by news is a good reason to enter position. Stock will most likely stay at the new price level or more further within 5 days.

How Much Volume Is Necessary In our test we used 75% increase in 5 day average volume Positions Were Entered MOC

Positions Were Closed 5 Days Later MOC

Things To Keep In Mind See Spikes In Volume Check The News

If No Stock Or Sector News Odds Are The Move Is Real And Meaningful

If Stock Or Sector News Is Present Avoid Or Fade The Move

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