Volume_Analysis2 - Volume Analysis (Part II of IV) 05/21/01...

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Volume Analysis (Part II of IV) 05/21/01 11:10:50 AM PST by Dennis Peterson Volume tells you how many shares are traded and thus provides a measure of buying and selling enthusiasm. Security: QQQ Position: N/A Volume analysis studies price movement in relation to volume. It analyzes in-gear volume moves (prices moving up on increasing volume or prices moving down on decreasing volume) versus out-of-gear moves (prices moving up on decreasing volume and prices moving down on increasing volume). Applying the same analysis technique used on AOL (Part I) to QQQ (Figure 1: QQQ daily price and volume) gives a similar result. I want to find the market's comfort zone by first locating increasing or decreasing volume patterns. I don't expect them to occur sequentially because the market will go through periods of uncertainty. Since stocks move sideways 50% of the time, I expect volume to be thrashing around more often than following a trend. When I notice either an increasing or decreasing volume pattern, I look at price movement to
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This note was uploaded on 04/14/2010 for the course FINANCE fnce 305 taught by Professor Proftujun during the Spring '10 term at Singapore Management.

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Volume_Analysis2 - Volume Analysis (Part II of IV) 05/21/01...

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