New Techniques | AUG 2001
Timing The Move by Lorne W. Rae
Timing The Move by Lorne W. Rae All traders want to know in advance how long a price trend will last. Try predicting it with this technique. A note in Robert Edwards and John Magee’s Technical Analysis Of Stock Trends states, “Volume is of the utmost importance in all technical phenomena,” but then Edwards and Magee add, “... the exact number of shares traded is not important.” Over the half century since this work was first published, not a lot of attention has been paid to absolute volume, but it’s time to take a closer look at this concept. We might just find that the number of shares traded can indicate the length of a price trend. SHAREHOLDERS AND PRICE Price is determined at a moment in time when two individuals (or their agents) meet and agree to exchange a specific amount of money for a certain number of shares of stock. Once they finish their business, they depart and are replaced by another pair of individuals who establish the next price, and so on.
by Lorne W. Rae
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.