EZMONEY ED AND FRIENDS PICKS

[dmlabuda]

It's not always volume. High volume is required for a tops or bottoms but for a normal price correction, consistent volume accompanied by multiple days of buying in the same narrow price range especially at a previous support/resistance point or significant moving average. I consider that that adequate support. But, the real proof is a subsequent rise in price. You can also watch the OB/OS indices and the MACD for crossing points and Oversold readings to assist in indicating support but, that is not required it just helps in the decision making process.

It might be a good idea for you to use Ben Franklin's decision making process when deciding whether or not to buy at any given time. It's also great for deciding which of several stocks to buy. If you are not familiar with it, what Ben actually did when faced with a tough decision was to take a blank sheet of paper and fold it in half lengthwise. Then he would would open it up and write For (in out case buy now) at the top of the left column and Against (wait) at the top of the right column. Then he would write down all the reasons why (in our case that it would be a good idea to buy now) in the for column and all the reasons why it would be a good idea to wait in the against column. It really puts things into perspective. Which ever column has the most reasons to take action is cause for deciding in that direction.