Price discovery and volume.

Discussion in 'Trading' started by noob_trad3r, May 18, 2009.

  1. I have noticed if a stock is trading around an average price but lower than usual volume the that price is not to be trusted.

    I noticed if volume is low on the trades and priced drops but every so often a bigger volume line and prices go up that if I buy on the price when it drops again I can sell for a better higher price the next day if volume is high.

    also when I look at the open book (level 2 prices thing)

    that where you see the big orders down below that that could be considered the days price support, I notice the stock would not go underneath that level.

    Anyhow thats something I have been noticing.
  2. You are "noticing" the approach of the Summer Doldrums. :cool: