Summary

• Volume should increase in the direction of the current trend, for it to be sustained
• Volume often precedes price, so a reducing volume in an uptrend may precede a reversal
• Divergences between volume indicators and the price chart suggest trouble
• Increasing open interest in an uptrend or down trend supports the trend
• Falling open interest in either trend suggests the trend will weaken
• High open interest can intensify any breakouts
• A reversal day sets a new high or low, in trend, and retraces to close less than the previous day
• Breakaway gaps occur on breakouts, and show a strong move
• Runaway gaps occur in a freely moving trend, and may mark the halfway position
• Exhaustion gaps mark the end of a trend, and are soon filled

At the end of each module there is a quiz. You can take a quiz at any point, but we suggest you view each module before taking the quiz. When you’re ready to start the quiz, click the take quiz ‘Start’ button below -:

Share this post: on Twitter on Facebook on Google+

This entry is filed under course. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.