Does Volume Lead the Price ?

Yes there is a chart in real time to follow below. Without a chart it is pointless imho.

My view is that it does  ( volume leading the price) in some instances. Is it a reliable leading indicator volume ? As reliable as the price action on the chart. It requires to be read in conjunction with price at specific turning points.

Lets look at BAP.ASX weekly chart and apply KISS factor to volume. How ? OBV will help us as shown at the bottom window. Before we get to volume, what is the MAJOR TREND of BAP ? Within a MAJOR UPTREND congested /flat MEDIUM TERM PRICE ACTION BEHAVIOUR is on display.What are we seeing/reading from OBV at the bottom window ? A BREAKOUT which is working nicely well before the price. Question now is, will the price follow the foot steps of OBV ? It may and likely it will. Confirmation is a must by the price.

I have shaded a zone with Blue within the larger trading range which is the most dominant short term pattern. In fact, one may take the high and low of the current weekly bar as a reference and wait and see where it closes for further clues. Don’t forget the FOLLOW-THROUGH or lack of it please.

I will leave it at this for now with my BAP analysis continuing taking a medium time horizon view.

Treat the Resistance line as a CREEK and watch out for the SCOUT BOY in case he stages a BIG JUMP in the days/weeks ahead. He must be board stiff in this trading range which has been in effect for well over a year. I am. At least I took some trades with it along the way also.

Will this be another one in the bottom draw ? If I see a MAJOR BREAKOUT yes.

Some of the best trades hide around the edges of the trading ranges as the saying goes…

Disclosure : BAP.ASX is held tightly until it starts misbehaving.

Thank you for those readers/friends/chart lovers who has shown interest in the upcoming educational meetings. Webinar form would be the way to go to start with. Progress is being made on that front and will get the ball rolling in the next month or two.

Chart is courtesy of tradingview.com and it is FREE.

bapweekly22022018

Disclaimer

All the information and analysis provided on this website is general in nature and for educational purposes only and does not constitute financial advice. No content in any way implies a recommendation to buy, sell, hold or short sell any financial instrument, nor is it financial advice.

Investing and trading in financial markets carries considerable risk, and should always be done in consultation with a licensed financial adviser taking your personal circumstances, financial situation, objectives and needs into consideration.

Links to other websites are inserted for convenience only and do not constitute endorsement of any of the material on those sites, or any associated organisation, product or service. Kazim Agaoglu is not responsible for the content of any site owned by a third party that may be linked to this website and such links are provided as a courtesy with no judgment or warranty being made concerning the suitability, accuracy or otherwise of the content on any such site.

Kazim Agaoglu disclaims any undertakings, warranties or guarantees, express or implied and shall not be liable for any loss or damage whatsoever arising out of in connection with the use of or reliance upon any of the information on this website. The user accepts sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information on this website is no substitute for financial advice.

 

 

Comments are closed.