Cover image for Trading on volume : the key to identifying and profiting from stock price reversals
Title:
Trading on volume : the key to identifying and profiting from stock price reversals
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Publication Information:
New York : McGraw-Hill, c2002.
ISBN:
9780071376044

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30000004878546 HG4551 C33 2002 Open Access Book Book
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Summary

Summary

Techniques to use trading volume as an indicator of market direction Trading on Volume is the first serious analysis of how to employ this accurate tool in today's fast-action trading environment. Specifically, it details how traders can pinpoint the rise, climax, and fall of the activity of market participants, and dramatically increase their opportunities to buy near stock or market bottoms and sell near tops. Trading on Volume describes the basics of volume, discusses the value of behavioral science in understanding volume, and then provides actual, market-tested techniques and strategies. Longtime market analyst Don Cassidy presents specific techniques to use volume to trade more efficiently, including: Volume crescendos, volume spikes, and crowd formation and dispersion How volume reveals market trends and trader psychology Practical applications using stocks and exchange-traded index funds


Author Notes

Donald Cassidy is senior research analyst and manager of money flows analysis for mutual fund tracking firm Lipper, Inc.


Table of Contents

Acknowledgmentsp. ix
Part 1 Central Concepts: Theory and Actionp. 1
Chapter 1 Volume Is the Cause, Price Is the Effectp. 3
Chapter 2 Reality: Random Walk or Behavioral Finance?p. 17
Chapter 3 Don't Contemplate. Act!p. 39
Part 2 Traditional Views on Volumep. 57
Chapter 4 Tick Volume and Daily Net Volumep. 59
Chapter 5 Daily Up or Down Price-and-Volume Combinationsp. 71
Chapter 6 TRIN, or The Arms Indexp. 83
Chapter 7 Equivolume and Ease of Movementp. 97
Part 3 Radical New Concepts and Approachesp. 115
Chapter 8 Institutions and the Internet: Enemies Wearing Red Coatsp. 117
Chapter 9 Volume Crescendos: Beacons of Crowd Activitp. 135
Chapter 10 Volume Spikes and Their Psychological Aftereffectsp. 155
Chapter 11 Lower Volume at Later Price Extremesp. 187
Chapter 12 Cautions About Misinterpreting Low Volumep. 203
Part 4 Practical Applications of Your New Volume Knowledgep. 221
Chapter 13 Using Information from the Most-Actives Listp. 223
Chapter 14 Mutual Funds and Exchange-Traded Funds: Volume and Price Signals for Actionp. 237
Chapter 15 Profiting from Year-End Phenomenap. 255
Chapter 16 Short-Term Applicationsp. 271
Chapter 17 Final Thoughts and an Integration of Themesp. 287
Appendixp. 293
Indexp. 297