InvestorsHub Logo
Followers 35
Posts 1497
Boards Moderated 0
Alias Born 05/26/2010

Re: liable post# 14695

Wednesday, 08/25/2010 2:31:22 AM

Wednesday, August 25, 2010 2:31:22 AM

Post# of 26968
Light volume pullback is normal and healthy for a stock. You only have to worry when volume increases on a decline, and not decrease. An increase in volume on a decline would indicate trouble ahead. An increase in volume on an advance is a good and does precede price.

There are some great sites out there where you can learn more about technical analysis, reading charts and how important volume is when determining trends. Here is some great information from Yahoo! Finance site.

http://finance.yahoo.com/news/Use-Volume-To-Chart-A-Stocks-ibd-1529067484.html?x=0&.v=1

From Yahoo! Finance
When a stock is building a base, it can be OK to see some distribution on the left side as long as there's much better action in the days and weeks before the breakout. At the bottom of the base, you'd want to see light volume. The low turnover tells you that institutions have stopped unloading shares...


GLTA