Symmetric volumes in Dow Jones

[wp_lightbox_prettyPhoto_image link=”http://www.economicsignature.com/wp-content/uploads/2018/02/20180222-symmetric-volumes.png” description=”In March 2009 when the market reached its lowest after the 2008 financial tsunami, there emerged a largest volume. Since 2017 till now, almost equal sized large volumes have revived again. The symmetric volumes are by no means accidental. In fact, the main driving forces (i.e., institutional traders) in the stock market were buying low and selling high.” source=”http://www.economicsignature.com/wp-content/uploads/2018/02/20180222-symmetric-volumes.png” title=”Symmetric volumes in Dow Jones”]

 

The fundamental technical analysis of Economic Signature is based on Price & Volume Action. We look at both prices and volumes. Large bars along with large volumes are usually footprints of institutional investors. When large volumes show up, they should call our special attention.

Reviewing the Dow Jones index discovers an interesting finding. In March 2009 when the market reached its lowest after the 2008 financial tsunami, there emerged a largest volume. Since 2017 till now, almost equal sized large volumes have revived again. The symmetric volumes are by no means accidental. In fact, the main driving forces (i.e., institutional traders) in the stock market were buying low and selling high.

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