Ann: Trading Halt, page-232

The beauty of study of markets with so many variables what works for one may not work for another even though the underlying principles often generally overlap. Published in Your Trading Edge some 10 - 15 years ago some may enjoy the extract below :

“I will refer to just one, a study in 2000 by Lee and Swaminathan entitled ‘Price Momentum and Trading Volume’. The study examined all stocks on the NYSE and AMEX between January 1965 and December 1995. The authors found that the relationship between momentum and volume is not as straight forward as the supporters of technical analysis would have us believe. They found that for rising stocks, early momentum is accompanied by low volume and that higher volume was associated with the end of the rally. Buying a rising stock when the volume increased was likely to be a losing strategy. For falling shares, the opposite was true. Higher volume tended to accompany the start of a fall. Increasing volume usually meant the end of the move.”