Why do bottoms form on low volume?

Discussion in 'Stocks' started by short&naked, Oct 7, 2008.

  1. The reason people buy or short something is in anticiation for a price movement. Most of these people execute this by shorting or buying once they see that the movement has occurred.

    There are second, minute, hour, day, weekly and ect traders out there. The only ones trading the stabilizing bottom are the second and minute traders. The hour and day traders only trade big movements from broken support or resisstance. Combine them with the second and minute traders and you have much more volume. It's all about understanding a successful time frame mindset.
     
    #11     Oct 7, 2008
  2. Brandonf

    Brandonf Sponsor

    Coz no one wants to tap into one thats seen a lot of volume :)
     
    #12     Oct 7, 2008