Volume tends to drop near a reversal

Generally, high volume is bearish and low volume is bullish. High volume bull candles tend to be bottoms and the volume tapers off as it runs up. One way to spot a coming reversal, is spotting a a substantial volume drop off from the previous candle/trend. Volume drops off when the momentum of the up/down move is exhausted. Those who were gonna sell or buy the move have already done so.

评论:

Learn to read volume, if nothing else. It will show you the way.