1.When prices are rising and volume is increasing, prices will continue to rise. The uptrend is being confirmed.2.When prices are rising but volume is decreasing, the uptrend is losing momentum and may be near the end.
3.When prices are falling and volume is increasing, prices will continue to fall.
4.When prices are falling and volume is decreasing, the downtrend is losing momentum and may be near the end.7GBUNYAT7VV6
Uptrends - A pattern of higher highs and higher lows.
Downtrends - A pattern of lower lows and lower highs.
Trend-less - Erratic price movements which are often steep ( greater than 45 -degree angle ) and cannot sustain and therefore must reverse. Although the movements can move many points in a short period of time, they often result in very little net price movement over time.
Choppy - An erratic pattern of higher highs and lower lows.
Sideways - A narrow pattern of lower highs and higher lows.
Price reflects the perception and action taken by the market participants. It is the urgency between buyers and sellers in the trading pit that creates price movement. Thus, all fundamental factors are quickly discounted in price. Therefore, by studying the price charts, you are indirectly seeing the fundamental and market psychology all at once - after all the market is feed by two emotions - Greed and Fear and once you understand that, then you begin to understand the psychology of the market and how it relates to the chart patterns.
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