Trading volume has soared (see chart), up by 27% in the first quarter from a year earlier.
If a stock is breaking down badly on the chart with increasing volume, that fact trumps all fundamentals.
As is the case in many important chart formations, volume plays a vital role in identifying the formation and in confirming that it has been completed.
The chart below shows the volume of links being shared on Facebook by hour and day of week.
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Several leading stocks have broken out of chart patterns on lower volume.
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Chart Analysis : The volume analysis of the Spyder Gold Trust ( GLD) early in 2011 suggested that it was ready to correct, and the fund did drop sharply into the end of January before developing a broad trading range, which has now been resolved by the close above resistance at line b.
When that's completed, he'll build a model of its big brother, the BA330: At 11, 600 cubic feet, it has nearly as much volume as the entire ISS (see chart, p. 158).
The chart below compares Facebook wall posting volume for Sarah Palin, Donald Trump and Barack Obama.
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On the bottom of the chart, it is evident that the volume increased in November, point 1, which indicates there was more selling in November than there was buying in October.
Now, as actually shown in chart 2-5 of the Analytical Perspectives Volume, our average annual GDP growth projection for the five years after the GDP trough is 3.8 percent, similar to the 4.2 percent historical average during recoveries.
Though the average three-month volume is acceptable at 230, 000 shares, the daily chart reflects quite a few peaks and valleys.
In recent articles on chart analysis, I did not include the corresponding volume analysis because I wanted readers to simply focus on the charts initially.
However, I have found that combining this scan with the monthly analysis of the chart, relative performance, and on-balance volume can be quite effective in identifying good buying opportunities.
They determine this by looking at a complex set of lines overlaid onto a stock chart, such as moving averages, support lines, volume activity, etc.
On the bottom of the chart, I have also included the on-balance volume (OBV), which does a very good job of indentifying the lower volume that should coincide with the second low in a double-bottom formation.
With the moving averages first showing the buy signal in our strategy and with the volume increasing at about the same time, the confirmation is clear as our ADX chart rises above 20: traders should have been in on this stock.
Although in volume terms production has at last begun to catch up with pre-recession levels (see chart), most small firms are probably still in decline.
Chart Analysis: The monthly chart of the Comex gold contract that goes back to 2011, uses the continuous contract that includes volume from all open contracts.
The top-left chart above shows the sharp slide in Barclays PLC ( BCS) as it gapped lower Friday on heavy volume.
Lastly, the chart popped back above 200-week moving average support, and all of this happened on the biggest volume since the August closing low.
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