Positive volume development

Both volume balance and the correlation between price development and volume development are positive. This indicates that buyers are aggressive and strong, while sellers are hesitant.

Both volume balance and correlation between price and volume development are considered important indicators. They are often used alongside trend analysis and other indicators based on the stock price.

When both of these are positive at the same time, it is a strong signal of increasing optimism among investors. Volume will often trigger signals early – even before the increasing optimism triggers rising prices.

The following applies when volume development is positive:

  • Strengthens a buy signal
  • Weakens a sell signal
  • Indicates that investors are positive and the rising trend will continue
  • Indicates that sellers are passive, a falling trend is ending and a trend reversal is near

Generally we want to see positive volume development for stocks we own or will buy. Positive volume indicates a healthy stock with a positive development of the investors’ view of the stock. Such a stock is indicated to continue rising.

 

 


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Investeringsaanbevelingen worden gedaan door Investtech.com AS ("Investtech"). Investtech garandeert geen volledigheid of juistheid van de analyses. Eventuele fouten in de aanbevelingen, koop- en verkoopsignalen en mogelijke negatieve gevolgen hiervan zijn geheel het risico van de belegger. Investtech neemt geen enkele verantwoordelijkheid voor verlies, direct of indirect, als gevolg van het gebruik van Investtechs analyses. Meer informatie omtrent Investtechs analyses kunt u vinden op disclaimer.

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