You are welcome, two sayings to remember in trading; "someone
always knows something" meaning insiders are everywhere and they
trade before the news leaks out. Also, "Volume is Validity" meaning
that when there is rising volume with rising prices it's for real.
Otherwise be suspect of an move up or down that isn't accompanied
with more volume as it may turn out to only be a head fake. This
Friday is options expiration and therefore head fakes are in
vogue.
Title: Wow! I'm new to trading
The machine behind the curtain
Posted by tradequick on 14th of Jul 2010 at 10:42 am
I'm new to trading and that's the first example like that I've seen. Thanks for pointing it out.
You are welcome, two sayings
Posted by ditch on 14th of Jul 2010 at 11:18 am
You are welcome, two sayings to remember in trading; "someone always knows something" meaning insiders are everywhere and they trade before the news leaks out. Also, "Volume is Validity" meaning that when there is rising volume with rising prices it's for real. Otherwise be suspect of an move up or down that isn't accompanied with more volume as it may turn out to only be a head fake. This Friday is options expiration and therefore head fakes are in vogue.
We are drawing a rising wedge on a 3 min. spy chart, these usually break down but we shall see. The volume on the move down this AM was light.