Volume to Price Trends
Price up, Volume up = Bullish (except during a market top)
Price down, volume up = Bearish (except at a market bottom)
Price up, volume down = Bearish
Price down, volume down = Bullish (trend losing momentum)
Volume up sharply, indicates a change in direction
Volume down sharply indicates indecision
Volume up gradually indicates the trend will continue
Volume down gradually indicates a drop in market momentum and the possibility of a reversal
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WARREN BUFFET SAID ...
The Price Volume Trend indicator is usually interpreted as follows:
•Increasing price accompanied by an increasing Price Volume Trend value, confirms the price trend upward.
•Decreasing price accompanied by a decreasing Price Volume Trend value, confirms the price trend downward.
•Increasing price accompanied by a decreasing or neutral Price Volume Trend value is a divergence and is indicating that the price movement upward is weak and lacking conviction.
•Decreasing price accompanied by a increasing or neutral Price Volume Trend value is a divergence and is indicating that the price movement downward is weak and lacking conviction.
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