Hi cy esp: There is but one thing that moves a stock up over time, be it a day a week or 15 minutes; more orders to buy than to sell. [The reason for the buying does NOT matter. All the "good" things that can be said about a company or a company's stock are meaningless unless they are translated into BUY orders.] And I always trade the company's stock, NEVER the company. The converse is true of stocks that decline; more orders to sell than to buy. I'll use daily charts to give you examples of two rather high-probability trader. But they can also be used to daytrade, with much shorter time frames.
If you pull up the AIRT daily to the last week in May you'll see what is called a "breakaway gap" accompanied by a sharp increase in volume. Looking at the monthly we see a stock that declined from near $15 to less than $5. The days later the stock was back near $15. Thus was followed by a 3-day bull-flag. A bull flag is typified by sharply reduced volume; earlier buyers are exiting, new buyers are entering. Bull-flags are often, not always, a "pause" prior to a resumption of the trend. AIRT is now 32.
Another "breakaway gap" can be found in the TASR daily around June 21 '04. TASR had declined from 64 or so to 24 or so. After a such a sharp decline, a breakaway gap with volume says, "I'm looking higher." I'm heading to the coffee-shop, we can continue this later.
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