Tuesday, October 19, 2010

Index Trading on High Volume

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There are strong increase in volume on all indexes over the last 30 minutes. on intraday 1-min (1 bar = 1 min) chart the strong bearish volume (during the price decline) could be seen in period from 14:01 until 14:05 (3 minutes only). After that the price moved up and high volume associated with this move is basically bullish volume. It looks like during the drop the indexes and stock have hit levels that was set by many traders as to buy (whether to close long position, or open a long position). If the price continue to decline it would mean that there are no buyer to support this short-loved "buying explosion" and the power of bears is quite strong.

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