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Sojourner55

08/08/21 11:32 AM

#394338 RE: Know-Fear #394313

Know-Fear,

In general, you want to see sustained and increase in price/volume on an uptrend that shows increased interest and accumulation in the stock. You typically see a step wise movement followed by contraction in volume as price consolidates and prepare to attack the next level of resistance and so on until you see an explosive action which typically marks the peak (as in the run up to 2.50). If the market feels there is more potential, SP may be in for a long period of sideways/downward movement as it digests the gains. Or if the stock is speculative or the run up is due to a short squeeze (think GME), there will be high volatility with fast drawdown and erratic swings.

Up trend



On a downtrend, you can see slow erosion (e.g NWBO after the ASM to last week) or fast gap downs (eg NVCR recently). With each step down you typically see the reverse of the uptrend as each spike in volume pushes the price down to the next level of support until investors give up by selling out en masse (capitulation).

Downtrend