Volume Negotiations Chart

The charts of volume of negotiations are elaborated with two axis of coordinates in the ordinates you situate the volumes of negotiation of a security, or of a group of them, in effective or nominal money units and in the abscissa you situate the period in days or weeks these graphics are usually studies together with the lineal or bar charts in the way if the volume increases when a rise is produced it will indicate that there is more demand than offers if the volume diminishes when the quotations fall it is because the investors don’t want to sell until the quotations rise again.

If on the contrary if the volume of negotiation increases when the quotations are low and are reduced when the quotations rise it is because the evolution is negative.

Under these suppositions you have to purchase those securities which quotation have registered rises with a high volume of negotiation and not sell them when a descent is produced with low volumes of negotiation on the contrary you have to sell those securities which quotations diminish with high volumes of negotiation and not to buy then when the rise of the quotations are followed by wear volumes of negotiation to this way of operating they denominated as “price – volume system”

Beginner Money Investing Market Technical Analysis Selecting an Investment Examples The Use of Oscillators Market Dot Charts Market Lineal charts Market Bar Charts Volume Negotiations Chart The Dow Theory Market Analysis Summary ANNEX - Methods to Select an Investment