Volumes Matters

The relationship between volume and price of a stock is a matter of common sense. But here is how you can use this tool effectively

Stripped of all the jargon, technical analysis is just a direct examination of the supply and demand situation in any freely traded market. Most TAs concentrate almost totally on the price movements and that is a terrible mistake.

While a shift in the demand-supply equation naturally shows up in price fluctuations, it is even more surely reflected by changes in volumes. A sharp operator or a cartel of sharp operators can sometimes fiddle prices in a thinly traded stock by means of manipulative trading. But in order to