TRADE SCHOOL: Talking Volume Nick Fosco June 24, 2010
VOLUME Agenda Lie Detector Trending Breakout Head Fake Blow-off tops / Breakdown Bottoms Overhead Volume
Lie Detector Sustained average volume (Truth) Increasing volume (Truth) Decreasing volume (Lie) Sustained low volume (Semi-lie) Volume spikes On general market news & non-events (Lie) With supporting good/bad earning (Truth) With supporting technical indicators (Truth) Trend-line break Consolidation zone Pull-back IBD type Chart patterns
TRENDING Sustained average volume
TRENDING Sustained average volume
BREAKOUT Strong Volume w/price move
HEAD FAKE Strong Price move with Lower Volume
BLOW-OFF TOP / BREAKDOWN BOTTOM Exponential change in OBV & price
OVERHEAD VOLUME All previous volume at higher prices