Volume Precedes Price and Confirm Stock Price Patterns
Written by HTMW Team
Average buyers of stocks are a drop in the bucket in terms of how they impact daily stock transactions (volume) compared to institutional buyers. The institutional buyers only buy in large blocks. When institutional buyers get into the market, they cause significant increase in demand. Like any case of supply and demand, when demand increases and supply stays the same, price will increase. When a stock becomes desirable, it is more likely that supply may decrease (as current stockholders will be less willing to sell) which will cause even more price pressure. The more one institutional buyer impacts price and volume, the more other institutional buyers will get interested in the stock and be motivated to buy the stock as well.
It stands to reason then that the greater volume should take
place in the same direction as the prevailing trend
Now lets look at how volume can cause stock prices to fall. If institutional buyers start dumping a stock, the supply will radically increase. Typically, demand will decrease at the same time as other institutions will either 1) concur that the company’s value has declined or 2) be motivated by the others selling the stock. As we know, when sellers outnumber buyers the stock price will fall.
I can direct you to dozens of books and hundreds of articles that discuss volume before price.
Any apology would be welcome but you just could both do it.
Your continuing on a subject you know nothing about shows how stupid you are.
The above article is from Forbes.
Ask you new friend FFS to get your mind right
