The Traderszone Network

Published in TZ Latest News 26 August, 2014 by The TZ Newswire Staff

Volume Drying Up On DJIA

Dollar-Weighted Volume (DWV) is a short-term indicator. Generally the DWV and the price index run pretty close together, with tops confirming tops and bottoms confirming bottoms. What we look for are positive/negative divergences and for instances where volume doesn’t confirm price, meaning that volume either leads or lags price. When this happens, look for a change in the short-term price trend. Right now we are seeing a divergence between DWV and price on the Dow Jones Industrials. Currently price is moving up faster than volume.

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