This is like anything else, no one has any idea and no one can explain anything. Have you ever talked to someone about support? All the people can't agree on where it is. People say sinking price on high volume is bearish. I'm not sure, man, there seems to be a big jump in volume when price is done going down. How I'm talking about it looks like.
No absolutes - either way - in trading. S&P volume this week, with a trading day to go, is the highest in over a year. Maybe it will end with a blowout bottom. Maybe it will continue to drop. Funny many a talking head were on the boobtube yesterday saying the damage was over.
%% IF only people agreed on every thing- wouldn't any market get simple then ?? LOL What makes you think we want all using a 200 day moving average. ??OOPs; we can't even agree on what kind of DMA, simple, weighted, ema, Hulls ma, double ma......Good question . DOW/DIA may not have support like QQQ; and why should it?? NOT a prediction
Your posts are hard to read. When you're not predicting you're doing it wrong. All trading is predicting, either direction, volatility, correlations strengthening, arbitrage is predicting, too, that a price difference will continue for long enough for you to profit.
I must be onto something as everyone is telling me I'm doing it wrong. If I made a thread about Aroon indicator or something everyone would be like seriously, that's a good thing, you should keep studying this.
Now you have to understand when the volume is done increasing, because decreasing price on high volume might have another decreasing on higher volume after it.
I will double down on the long or short side if I get an additional extreme buy/sell signal...or price goes to significant s/r. At this point obviously my first Trade was early, and if price went up/down too far I might take a break even stop on that first part. I won’t buy/sell a third time, because at this point I will assume I am wrong and be trying to get out of my double position at break even.