Tuesday, May 24, 2011

The volume and closing prices

Accumulation - is a term used to describe a market that is controlled by the customer.
If there is a downward trend that stalls when the volume increases or higher, which means there are more buyers want to buy a pair of lower price and accumulation occurs. Once all the sellers are exhausted, then buyers will outnumber sellers and downtrend will reverse.
These are two ways in which one day may be characterized as an accumulation:
1st The volume increase compared to yesterday and closing prices move higher.
2nd Mon trending downward price moves very little pick up in volume.

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