Posted On: 09/25/2015 1:17:58 PM
Post# of 1714
oh, perhaps you mean why is the volume so low?
its called divergence. you can have positive or negative divergence.
"Positive divergence occurs when the price of a security makes a new low while the indicator starts to climb upward"
check out the ROC indicator. see how its starting to climb upwards even though the price and volume have decreased?
normally, high volume = trend change = higher volume, but when volume and certain indicators diverge (go in opposite directions), its an indicator of a trend reversal.
even the MFI is doing relatively well right now, even though the volume is low. if both were going down, its a sign of a downward trend.
right now, we're all in limbo waiting for news from the company. to me, the chart is still a healthy chart.
its called divergence. you can have positive or negative divergence.
"Positive divergence occurs when the price of a security makes a new low while the indicator starts to climb upward"
check out the ROC indicator. see how its starting to climb upwards even though the price and volume have decreased?
normally, high volume = trend change = higher volume, but when volume and certain indicators diverge (go in opposite directions), its an indicator of a trend reversal.
even the MFI is doing relatively well right now, even though the volume is low. if both were going down, its a sign of a downward trend.
right now, we're all in limbo waiting for news from the company. to me, the chart is still a healthy chart.
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Everything said should only be seen as opinion. Do your own research to confirm a stock is worthwhile to invest.
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