...volume often leads price=BUT it doesn't have to...above average daily volume can be significant...A change in the OBV= crosses its moving average=IS significant...a candle on the "candleVolume charts" may give that candle a great deal more significance than the candle with average or less than average candleVolume... SIGNIFICANT means you look where price is...= is it at a "significant price chart line" such as one of the Bollinger Bands...support/resistance...trend line...one of those grail moving averages...et al "price chart signal lines"...that You may want to take action from...bottom line=no volume=no follow through...
What you are really trying to understand with you assessment of volume =is the ETF/Stock under Accumulation or Distribution... There are some very good technical indicators that will help you see Accumulation/Distribution...as seen in the chart below...
Any of the indicators suggest here on the daily chart that you should look further and should consider buying GLD right now...?... Candle Glance Charts...besides an assessment of the individual stock or ETF...I need to do a quick assessment of the "SECTOR" and the industry groups within that SECTOR....I have set up a few Candle Glance Charts on the "Intro" page along with the more popular ETFs... So if I'm looking at gold I can take a quick look at the whole metals sector...asking what kind of accumulation distribution is going on IN THE BIG PICTURE=the whole SECTOR CandleGlance: GLD, SLV, GDX, GDXJ, XLB, XME, SLX http://stockcharts.com/freecharts/candleglance.html?GLD,SLV,GDX,GDXJ,XLB,XME,SLX|B|F10 Accumulation/Distribution I can click on "GLD" Candle Glance chart and get 3 other charts...a larger daily which also has a line on the volume to measure average or above average volume recently...also you get a weekly and a point and figure chart...using the same Candle Glance Chart you can check this SECTOR with other indicators and longer time periods...just change a setting... Then I can Use the Gold miner ETF CANDLE GLANCE Chart to see if there are hints of accumulation/distribution starting in the individual stocks. http://stockcharts.com/freecharts/candleglance.html?gld,gdx,ABX,GG,NEM,KGC,BVN,GFI,AU,HMY,AUY,SLW|B|G10 I want to have done this assessment before I even look at an intraday chart... Because on the intraday chart if it isn't just intraday noise you're seeing...you should be looking for early signs of Accumulation/Distribution...that agrees with your assessment of the daily chart... ...the same as the TRIN tells you this for the INDEX... Simple...? Enjoy Ki...Kiy...theMatrix
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