Pump Up The Volume
Mapsignals took a deep dive into market volumes going back to 1990. We wanted to see what the market tends to do after big volume periods as well as low volume periods.
Pump Up The Volume – White Paper
Hypothesis:
Heavy volumes are constructive in oversold conditions. Heavy and light volumes are warning signs in overbought conditions.
Findings:
Big volume usually appears at troughs in the market. Eerily light volume precedes lower market prices but is constructive long term.
Click the images below to download the white paper.
Bottom line: markets are ready for a pullback. Pullbacks are constructive long-term for stocks.