Wall Street Insider Swears Money Pulling Method Is Not Illegal
Are you ready to learn a sure-fire system for generating quick and easy cash flow from the stock market?
This money pulling indicator is used by billion dollar hedge fund traders like Steve Cohen who's firm has average over 40% a year!
Over 50 stock traders work for him. He is a guru of following a stock's volume.
Most non-professional traders either overlook volume, or simply do not know how to use it correctly.
Even if you think you understand volume, you owe it to yourself to read this article to make sure you understand how to correctly interpret volume for massive profits.
The meeting of minds between bulls and bears are represented in each measured unit of volume. The volume is a still picture of the psychology of the crowd trading a particular stock or market. Rising volume confirms the trend while falling volume questions the trend and whether the dominant group can keep it going.
In a sell off, increasing volume into the move tells you that panic has firmly settled in as traders scramble for the exit. If you look carefully, you'll also see newbies jumping in as they bet the market is going to reverse. Keep in mind that in order for a sell order to execute, someone has to be a buyer. Every trade has these two sides. Jumping in to buy in a downtrend is known as trying to catch a falling knife. Most often it is a bad idea. Never bet against the wisdom of the crowd. Let some other newbie put on that trade. When all the sellers have exited the stock, the volume on the downside falls off as the downward move begins to run out of steam.
When a stock is trending higher, watch the volume. If the volume is increasing into the upward trend, it means that greed is causing more and more traders to take notice of a particular stock and to dog pile into that stock. As the stock continues to trend higher, the volume will continue to build which tells you that more and more traders are piling into the stock and that extreme greed has firmly gripped the market participants. Now keep an eye on the volume. Fear will slowly begin to replace greed as the volume begins to fall off and the uptrend starts to run out of steam.
Volume goes beyond just telling the conviction of a current trend, it gives you several clues.
A spike in volume on 1 day often signals the beginning of a new trend when it occurs on a breakout from a trading range. A spike in volume like this can also signal the ending of a trend. Very high volume that is 300% or more of the average volume signals market hysteria. This is when fearful bulls finally decide that this uptrend is for real and rush in to buy or it is when fearful bears become convinced that a decline has no bottom and rush in to sell short.
Divergences between price and volume tend to occur at turning points.
If price rises while volume falls, it is a signal that the uptrend is not attracting very much interest. If price falls to a new low and volume falls at the same time, it is a signal that the downtrend is not attracting very much interest and an upside reversal is likely. Price is more important than volume but a master traders knows how to analyze volume in order to gauge the psychology of market participants. - 23162
This money pulling indicator is used by billion dollar hedge fund traders like Steve Cohen who's firm has average over 40% a year!
Over 50 stock traders work for him. He is a guru of following a stock's volume.
Most non-professional traders either overlook volume, or simply do not know how to use it correctly.
Even if you think you understand volume, you owe it to yourself to read this article to make sure you understand how to correctly interpret volume for massive profits.
The meeting of minds between bulls and bears are represented in each measured unit of volume. The volume is a still picture of the psychology of the crowd trading a particular stock or market. Rising volume confirms the trend while falling volume questions the trend and whether the dominant group can keep it going.
In a sell off, increasing volume into the move tells you that panic has firmly settled in as traders scramble for the exit. If you look carefully, you'll also see newbies jumping in as they bet the market is going to reverse. Keep in mind that in order for a sell order to execute, someone has to be a buyer. Every trade has these two sides. Jumping in to buy in a downtrend is known as trying to catch a falling knife. Most often it is a bad idea. Never bet against the wisdom of the crowd. Let some other newbie put on that trade. When all the sellers have exited the stock, the volume on the downside falls off as the downward move begins to run out of steam.
When a stock is trending higher, watch the volume. If the volume is increasing into the upward trend, it means that greed is causing more and more traders to take notice of a particular stock and to dog pile into that stock. As the stock continues to trend higher, the volume will continue to build which tells you that more and more traders are piling into the stock and that extreme greed has firmly gripped the market participants. Now keep an eye on the volume. Fear will slowly begin to replace greed as the volume begins to fall off and the uptrend starts to run out of steam.
Volume goes beyond just telling the conviction of a current trend, it gives you several clues.
A spike in volume on 1 day often signals the beginning of a new trend when it occurs on a breakout from a trading range. A spike in volume like this can also signal the ending of a trend. Very high volume that is 300% or more of the average volume signals market hysteria. This is when fearful bulls finally decide that this uptrend is for real and rush in to buy or it is when fearful bears become convinced that a decline has no bottom and rush in to sell short.
Divergences between price and volume tend to occur at turning points.
If price rises while volume falls, it is a signal that the uptrend is not attracting very much interest. If price falls to a new low and volume falls at the same time, it is a signal that the downtrend is not attracting very much interest and an upside reversal is likely. Price is more important than volume but a master traders knows how to analyze volume in order to gauge the psychology of market participants. - 23162
About the Author:
By Shawn Tilman. May this lesson help you improve your trading and make a ton of money. For more FREE master stock trading tips and advice go to stock market
posted by X - Men @ 6:00 AM
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