Volume_Analysis1 - Volume Analysis (Part I of IV) 05/18/01...

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Volume Analysis (Part I of IV) 05/18/01 02:01:00 PM PST by Dennis Peterson Volume tells us how many shares are traded and thus gives us a measure of buying and selling enthusiasm. Security: AOL Position: N/A Suppose someone offered you something you wanted for less money than it cost two weeks ago. Would you turn it down? What if everyone in your neighborhood had heard about this bargain and they all wanted the same thing? Would they turn it down too? Thinking about stocks and how many people are buying a bargain, or selling something that is too expensive, is one way to remember how to use volume. Obviously if a stock is perceived to be a bargain, then the whole neighborhood will jump in. If it's perceived to be too expensive, then not many will buy it. You may have heard the phrase "volume leads price." Does this mean, for example, that if volume is increasing price will also? Obviously, this is not always the case. The phrase should be "volume and price together can tell you if the market is comfortable with a price." The
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Volume_Analysis1 - Volume Analysis (Part I of IV) 05/18/01...

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