QE Study Of Low Volume

I find that lower volume when an index churns is a more reliable sign of a topping pattern. Often times investors/traders point to an index that is rising on lower volume and they expect it to fall and it never does.

I would be on the look at for a climax top at the end of a low volume rise to be a signal that the markets are going to reverse. We’re in a grind higher pattern as far as I can see for now.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.