RESEARCH DEVELOPMENT 21 - Abnormal Volume as profit taking tell
As you can see on the chart,
You can clearly see that whenever there is an abnormal volume on a specific day, after multiple days of running moving price (rise), there will be a reversal.
So, this could be a profit-taking point to know that this is a good statistical time to sell and realize your profits.
By realizing profits in a more optimum way, those small realized profits will add up to tremendous amounts at the end of the year.
This idea is connected to the idea of:
RESEARCH DEVELOPMENT 19 - YOUR WIFE METAPHOR
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Where I explain why the price moves in an up-and-down manner, and you can see that when there is volume, there is a reversal of pursuit between the buyers and the sellers.
"Price" will look for where there is an agreement to sell/buy the stock.
When the agreement is achieved (volume happens), there will be a reversal, because there is always some puppet master who is testing the market and playing the strings.
From a supply/demand perspective, the puppet master is hitting a wall of supply/demand, so this is a price he knows for sure he could buy/sell his stock, so he relaxes his buying/selling pressure.
Stock Market Logic Series #4
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You could see at AI, that the same pattern of Abnormal Volume as profit taking tell.
You can clearly see that whenever there is an abnormal volume on a specific day, after multiple days of running moving price (rise), there will be a reversal.
So, this could be a profit-taking point to know that this is a good statistical time to sell and realize your profits.
By realizing profits in a more optimum way, those small realized profits will add up to tremendous amounts at the end of the year.
This idea is connected to the idea of:
RESEARCH DEVELOPMENT 19 - YOUR WIFE METAPHOR
-------------
Where I explain why the price moves in an up-and-down manner, and you can see that when there is volume, there is a reversal of pursuit between the buyers and the sellers.
"Price" will look for where there is an agreement to sell/buy the stock.
When the agreement is achieved (volume happens), there will be a reversal, because there is always some puppet master who is testing the market and playing the strings.
From a supply/demand perspective, the puppet master is hitting a wall of supply/demand, so this is a price he knows for sure he could buy/sell his stock, so he relaxes his buying/selling pressure.
Stock Market Logic Series #4
-------------
You could see at AI, that the same pattern of Abnormal Volume as profit taking tell.
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🧪 Feel confident with science and logic
💰 Trade your way to success and freedom
