Monday, August 07, 2006

What happens prior to any price change?

RameshBabu velidi
What happens prior to any price change?

Gents,
What happens prior to any price change?

It is important to know this so that
you can look at a chart,
interpret the action of the masses and
stay AHEAD of them.

Before there is ANY price charge the following sequence of events take place:

1. Changes in VolumE
This will the first sign that something is about to change.
You will need to be aware of the amount and speed of the volume and its relationship to price movement.
2. Changes in the Relationship of Highs and Lows with Respect to Volume
After changes in volume, this will happen next.
Examining this relationship will reveal if the price move that is developing is strong or not.
If the moveis strong enough, it will cause the momentum to follow suit.

3. Momentum
This is the last event to occur.
It is the snowball effect of the volume supported by price movement, which if you capture BEFORE it occurs, will giveyou the HIGH RETURNS.

1 comment:

karts said...

Hi

Nice reading your post.Plain english lot of gyan.Keep up good work pal.

Why dont u throw some light on F&O ?

Not much useful info available on net as of now.

Karthi