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Positive volume balance

Positive volume balance is a sign of health. It shows that the stock price is rising on high volume and reacting back on low volume. This indicates that investors are worried about not getting into the stock when something happens, and also hesitant to sell on falling prices.

Volume balance is a very important indicator. It is often used alongside trend analysis and other indicators based on the stock price.

The following applies to positive volume balance:

  • Strengthens a buy signal
  • Weakens a sell signal
  • Indicates that investors are positive and rising prices will continue
  • Indicates the end of falling prices and a trend reversal upwards

In general we want the stocks we own or plan to buy to have positive volume balance. Positive volume balance indicates a healthy stock with positive development of the investors’ view of the stock. Such a stock is indicated to rise further.

 

 


Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer. The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.


Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer. The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.

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