Rising Volume Decreasing Price

Discussion in 'Trading' started by malcolmriver, May 27, 2009.

  1. Hi all-

    My question is about a situation which I am in. I invested in a stock which seems quiet cheaper at the start of the week. The market was down. The stock has good liquidity, high trading volume. Itis moving avarage was rising. It has good profits. Thus its fundementals seemed good to invest.

    However, since I invested, the stock sank deeper despite the act that its volume rose more. Today, the market was up, but the stock was not up. Can it be due to the fact that, the stock is about the start a new trend upwards, or does it mean that, it would sank even more?

  2. 1) Price is more important than volume.
    2) Rising volume tends to reinforce price movement.
    3) Have an exit-strategy in place to prevent "large" losses. :cool: