Why do you ignore the factual volume statistic I post?
We have averaged 900mil per month, for 27 months.
Last month was 760mil even though it came on really only
two trading weeks. Volume is low before a breakout, then it expands 3-5x
I'm one of the least intelligent people on this board. I still know this.
All that is needed is sellers to run out of shares at .0001 and then the market will
take that as a bullish sign when .0002 starts getting hit, and bid is firm at .0001.
I don't know when it will happen, and have been wrong on timing. I want more shares at .0001
but all my money is tied up elsewhere. All my 3x-10x #otc runners came from buying at the lows and waiting. Buying low is hard. Selling high is easy. 95% chase higher, or sell low, also known as throwing
in in towel at the lows. This security has fallen so much in the past and has traded sideways for almost 2.5 years. The majority is bearish at .0001, and wrong. Only here on this board are a few bullish. No one is talking about this on X
High volume breakouts are significant in technical analysis as they indicate strong market interest and increase the likelihood of sustained price movement.
When a stock breaks through a resistance level with high volume, it suggests that buyers have taken control of the market, potentially leading to a bullish trend.
Volume analysis is crucial for confirming breakouts. A breakout with high volume is more reliable than one with low volume, as it shows that the move is backed by substantial market participation.
For instance, a breakout accompanied by a volume spike of 200% or more above the average is often considered a strong signal.
Combining volume analysis with other technical indicators such as Bollinger Bands, ATR (Average True Range), and VWAP (Volume Weighted Average Price) can enhance the accuracy of breakout identification.
These tools help in spotting periods of low volatility, which often precede breakouts, and in confirming the breakout's strength.
For example, when the price breaks through Bollinger Bands during a squeeze and is matched with a volume spike, it can confirm the breakout's strength.
Similarly, when the price pushes past resistance and stays above the VWAP, it often indicates strong buying momentum, suggesting the trend may continue.
In addition to these tools, traders can use stock screeners to find potential breakout candidates. For instance, a screener might identify stocks nearing a 200-day high by 5% and showing consolidation for the past 30 days with volume above the 50-day average.
It is important to note that not all breakouts succeed. Over time, the failure rate of breakouts has been increasing, especially since the dot-com boom.
Therefore, it is crucial to employ robust risk management strategies and to ensure that the breakout is confirmed by high volume and other technical indicators before entering a trade.
Bollinger Bands: Used to identify periods of low volatility and confirm breakouts.
ATR (Average True Range): Measures volatility and helps in determining breakout strength.
VWAP (Volume Weighted Average Price): Combines price and volume to confirm breakout strength.
RSI (Relative Strength Index): Can be used to confirm overbought or oversold conditions, aiding in breakout analysis.
MACD (Moving Average Convergence Divergence): Helps in identifying momentum shifts, supporting breakout confirmation.
On-Balance Volume (OBV): Measures buying and selling pressure based on volume, aiding in breakout analysis.
By integrating volume analysis with these technical indicators, traders can improve their ability to identify high-probability breakout opportunities and manage risk effectively.