Rising price, falling volume...not bullish

Discussion in 'Index Futures' started by Rickshaw Man, May 27, 2022.

  1. It is what it is, rising prices with lower volume is not the most bullish of scenarios. We want to see just the opposite. Rising prices with ever-rising volume.

    I noticed the FOMC has not updated its weekly balance sheet trend. It's typically updated Thursday evening. Don't be surprised if they stop updating it. They have done it before. Remember the FOMC said the will start reducing their balance sheet starting in June.

    Screenshot 2022-05-27 094526.jpg
     
    Axon likes this.
  2. SunTrader

    SunTrader

    !FEDBS.png As usual on a Thursday (yesterday):-

    2022-05-25: 8,914,281(+ more)
    Updated: 3:33 PM CDT

    First time breaking below a prior swing low in like ... forever.
     
    Last edited: May 27, 2022
    nooby_mcnoob likes this.
  3. Falling volume is how bull markets are made.

    To look for bottoms, you want to see heavy volume on red days, not green days.
     
  4. With derivatives, ETFs, SMA, structured products and the like, you can get exposure many different ways. that makes volume analysis like this rather meaningless IMO
     
    murray t turtle likes this.
  5. upload_2022-5-27_12-3-27.png

    I'd say the areas lined up here with volume look like a good short entry. Those who bought that dip will be looking to get out.
     
    murray t turtle likes this.
  6. What are we looking at here?
     
  7. %%
    THAT;
    + rising volume + price= bullish / falling volume + rise of price= bullish /
    + average volume + average rise of price price/LOL:D:D
     
    nooby_mcnoob and MKTrader like this.
  8. MKTrader

    MKTrader

    I guess someone hasn't been paying attention. Practically every strong rally and market recovery has followed the "rising price on low volume pattern" for the last 20 years (maybe much longer). Sure, there's occasionally a strong volume day near a bottom or other times, but the general pattern is very consistent with "climbing a wall of worry." Any "elite" trader should've noticed this by now.

    Note: this isn't a call that we've hit a long-term bottom, that stocks will go higher/lower or anything else. Just a correction to a common fallacy of market newbies.
     
  9. Over the past 20 years, I've learned that technical analysis is subjective. It all depends on the prevailing trend. Trade in the direction of the prevailing trend. Swim with the current. Look for chart setups in the direction of the prevailing trend.

    Rising prices counter to the prevailing trend with weaker and weaker volume is IMO very bearish. Im pointing it out trying to help. Your argument is without merit.
     
  10. SunTrader

    SunTrader

    #10     May 27, 2022