Buff Pelz Dormeier
Do you believe in economics? Volume analysis is the law of supply and demand working within the exchange markets. For example, when securities change hands on the auction markets, the volume of shares bought always matches the volume sold on executed orders. When the price rises, the upward movement reflects that demand has exceeded supply or that buyers are in control. Likewise, when the price falls it implies supply has exceeded demand or that sellers are controlling the action.
Over time, these trends of supply and demand form accumulation and distribution trends and patterns. But, what if there was a way to look deep inside these price trends to determine if current prices were supported by the volume? Well, this is the objective of volume analysis: identifying the potential implications from imbalances within the price-volume relationship