Trading on Volume: The Key to Identifying and Profiting from Stock Price Reversals
Editorial Reviews
Book Description
Techniques to use trading volume as an indicator of market direction Trading on Volume is the first serious analysis of how to employ this accurate tool in today's fast-action trading environment. Specifically, it details how traders can pinpoint the rise, climax, and fall of the activity of market participants, and dramatically increase their opportunities to buy near stock or market bottoms and sell near tops. Trading on Volume describes the basics of volume, discusses the value of behavioral science in understanding volume, and then provides actual, market-tested techniques and strategies. Longtime market analyst Don Cassidy presents specific techniques to use volume to trade more efficiently, including: Volume crescendos, volume spikes, and crowd formation and dispersion How volume reveals market trends and trader psychology Practical applications using stocks and exchange-traded index funds
From the Back Cover
ALL ABOUT VOLUME­­Today's Most Valuable, but Often Overlooked, Indicator of Market Direction
In today's tumultuous markets, driven more by emotion than fact, trading volume tells an important story of crowd psychology, fear, and greed­­and their impact on prices. While other traders search elsewhere for answers, and while most academics believe prices move randomly, those who truly understand what volume says about future price movement find they have a reliable weapon in their trading arsenal.
Trading on Volume uses historical facts and data to confirm the power of volume in forecasting price action, then explains how to seamlessly incorporate volume analysis into your day-to-day trading program. Exhaustively researched and substantiated, it provides hands-on information for understanding and using:
Trading volume causes stock prices to rise and fall; it's as simple and complicated as that. Find out the secrets volume has to tell you, and the strategies you can use to make volume a vital and profitable component of your trading program, in the insightful and practical Trading on Volume.
"Volume is the cause; price, the effect...."
Technical researchers and traders tend to focus almost exclusively on price action. Fundamental traders, on the other hand, rely on company and stock valuation. Yet it is trading volume that is as important, if not more important, in understanding and forecasting price movements­­even though it is consistently ignored by all but a few knowledgeable individuals.
Trading on Volume explains how changes in volume can actually disclose the amount and type of interest in a stock and help you determine where the price is going next. More than just a superficial treatment, it is a comprehensive study and analysis of behavioral finance as it relates to trading volume, conventional views on volume from TRIN and tick to Up/Down Volume/Price combinations, and innovative techniques for understanding volume and using it to your advantage in virtually any market environment.
Volume data holds a rich body of practical information. Let Trading on Volume show you how to uncover and use that information to achieve better buy and sell prices, as you exercise greater control over the inherent risks involved in trading. Topics covered include:
Beyond the many difficult-to-measure factors in today's fast-moving markets, it is simple supply and demand that drive stock prices. Trading on Volume shows you how to use that one unarguable fact to your advantage. Regardless of your overall technique or strategy, it will supply you with the knowledge you need to pinpoint the rise, climax, and fall of the activity of market participants, then use that knowledge to buy near market bottoms and sell near tops with unprecedented consistency and accuracy.
Trading on Volume: The Key to Identifying and Profiting from Stock Price Reversals,Donald L. Cassidy,McGraw-Hill,0071376046,Accounting - General,Business & Economics,Business / Economics / Finance,Business/Economics,Investments & Securities - General,Prices,Stock exchanges,Stock price forecasting,Stocks,United States,Business & Economics / Investments & Securities
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