"volume and price are tied together like peas in a pod.....price follows volume and volume follows prices..it's the direction you need to look at to see what the relationship is....."
Hmmm not so sure about that SBB, in a case where we have a high volume up bar that finishes in the lower part of the bar that would be very negative wouldn't it? Even if the price was still advancing in that scenario I would be very wary. And conversly if we have a high volume downbar finishing off the bottom, even though the price is dropping (ala meo today) wouldn't you look on that as being actually quite positive in that it shows buyers coming back in? In both these cases direction has nothing to do with future performance of the sp, it is the volume, the spread and where it closes that count.
Cheers
MEO Price at posting:
51.5¢ Sentiment: None Disclosure: Held
