| MAR 1986
Technical analysis of volume by Howard K. Waxenberg
Technical analysis of volume by Howard K. Waxenberg You don't need a computer for volume studies; the analysis presented here can be done with a calculator and The Wall Street Journal. This article provides an outline of technical tools derived from volume figures which can then be used for analysis to gauge the internal strength or weakness of a market. In my last article I wrote about the technical analysis of the equity markets that could be accomplished without the aid of a computer or on-line database. In that article I showed an analysis of advance-decline data. This article will continue along a similar theme, but I discuss volume and the technical analysis that can be accomplished using technical tools developed from volume figures. Volume analysis is one of the most important tools of technical analysis since volume can give an excellent view of the internal structure of a market, a structure that is often hidden by external price action. An analysis of volume can give us a true measure of the amount of buying and selling that is taking place and the energy behind each of these market forces. Also, the old market maxim still holds true, ""Volume precedes price."" This is more true today, and somewhat more self-fulfilling, as more and more advisory services make their recommendations based on the internal volume readings for a market or stock.
by Howard K. Waxenberg
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.