PRICE + VOLUME: HOW TO READ A CHART.....

When you look at a stock chart, don’t just check whether the price is going up or down. Also look at the volume. It tells you how many shares were traded during that period and helps you understand how much participation there was behind the move. Here are 8 simple things to learn: 1. Price rising with high volume: More traders are participating in the move. It can be a positive sign, especially when the stock breaks a resistance level. 2. Price falling with high volume: Strong selling activity. If the stock breaks support with heavy volume, selling pressure could continue. 3. High volume but little price movement: A lot of shares are changing hands, but the price isn’t moving much. It may indicate that buyers and sellers are absorbing each other’s orders. Look at the trend and price level before drawing a conclusion. 4. Breakout with rising volume: A breakout supported by higher volume is generally more convincing than one with very little participation. 5. Breakout with low volume: Be careful. The stock may struggle to sustain the move, and the breakout could fail. 6. Price pulls back with falling volume: Selling activity may be reducing. In an uptrend, this can be a healthy pullback, but it needs confirmation. 7. Price falls with declining volume: Fewer shares are being traded during the fall. Selling pressure may be slowing, but it doesn’t automatically mean the stock will reverse. 8. Doji near support or resistance: A doji shows indecision between buyers and sellers. The candle that follows can help you understand which side is gaining control. One thing to remember: Volume alone cannot tell you when to buy or sell. Always check the overall trend, support and resistance levels, and the candles that follow.