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What causes us to do certain things every day in a
certain way? We are looking for a certain effect to take place.
We are going to be looking at the volume and seeking
out what each cause and effect is having on the stock.
Cause - the buying and selling.
Effect - what is happening to the price at those
points.
We need both the cause and the effect to be
consistent. If we are going up on higher volume, then the price
should be moving up by the same increments. When we have higher
volume for a few days and each day the stock is moving a point, and
then we have a higher volume day with a movement up of only 1/16, we
can see the effect is not the same. That is a warning that we will
start to run into resistance |
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ABOUT
THE AUTHOR |
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Name:
Tom O'Brien
Website:
www.tfnn.com
Tom O'Brien is the CEO and founder of Tiger
Financial News Network. Host of his own radio show,
editor of two newsletters and author of critically
acclaimed book 'Timing the Trade'.
Click Here for Complete
Bio
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FEATURED
PRODUCT |
The
Gold Report
Tom O'Brien's weekly newsletter gives traders,
investors and money managers a thorough strategy
for trading in the gold market.
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