lowtrade

[lowtrade]

The simple answer;
As for volume increases to support any chart pattern move. I'm personally happy with any size increase. Because it just gives comfort that the TA & chart has retail support.

if $RUBI breaks that $15.25 first-resistance what type of volume does it need? 50% above average or does it matter coming off a gap down?

The educational answer;
When I look at a chart I see three things; mindset, psychology, sentiment, behind the price action. Mindset becomes direction, psychology the plan or expectation and sentiment becomes strength/determination or support. So price action in the chart becomes about peoples actions.

Mindset = chart pattern. Psychology = TA. Sentiment = volume.

While having more winning trades then losing needs executing plans, based on rules. Finding what you want to trade requires experience. In my case learning TA & charting, along with comfort, not emotion used in a decision; produces those wins.

Every successful trader has their own style. Because people are different and have different wants, needs and goals. I am personally a low risk, income trader. And all I'm trying to teach here is what experience has taught me to reach my wants, needs and goals.

This post is getting way off your question. But the question has caused my drifting.

Because 50% increase in volume would be a great rule to follow in ones plan. If experience taught them it help them get more wins then losses in their trading style. Because sentiment supports both mindset and psychology. It shows how determined or sure the people involved in the stock are. Just like StockRSI above 80 and CMF above .25 shows support to any move in price. And seeing strong support to your planned trade adds comfort to your decision.

Success is all in the numbers, while attaining wins is more about how well one reads peoples actions. I'm happy with any increase in volume, after an entry signal, while 50% increase over the previous day would add comfort, it would not alter the decision to enter.

I'm trying to get readers to not only learn the mechanics, but the reasoning behind them.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=79890992

So here's an example. Can a 50% increase in volume alter indecision?

Look at RUBI's last 2 candles. The last 2 candles are a gravestone dogi & dragonfly doji. Knowing the doji means indecision within the mechanics of candle sticks says retail is at a indecision point. So what should one think about the most recent price action. There are two completely opposite candles, 1 after the other. The reversal down gravestone doji has 500k volume. While the indecision reversal up dragonfly doji has 1 mil., 50% more. Even though the doji itself stands for indecision. This double opposite doji thing is a learning opportunity.

Will 50% more volume on the positive doji over come the negative indecision doji?? Is 50% increase in volume strong enough sentiment to cause a positive result over a negative result. When the mindset & psycology is at a indecision point. Look for these things and remember the results. Then the next time you question is a 50% increase in volume needed for a successful move to occur. You'll have something to base your expectations on.

http://www.investopedia.com/terms/g/gravestone-doji.asp
http://www.investopedia.com/terms/d/dragonfly-doji.asp

If you see something happen once it's a happening, twice it's a coincidence, three times it's a pattern. You can start relying on a pattern.