- $1,160 is Gold's Next Target Level: Charts
- Why Nikkei Won't Top 10,500 in Near Term
- MSFT Stock Rise Has Little to Do with Windows 7
- What Now for Dow? Look to China for Clues
- How Far will Asia Go? Look to Kospi, Not Dow
- Betting on Aussie Parity With Dollar? Don't Hold Your Breath
- Profiting from Kraft's Takeover Bid for Cadbury: Charts
- Charting Sony: Game On!
MOST SHARED
- BlackRock: Central Banks To Be Net Buyers of Gold
- Weak US Housing Market Drags on Lowe's Profit
- Gold Is in a 'Bubble' And Will Keep Going Higher: Gartman
- EADS Cautious on Full-Year Forecast after Earnings Dip
- CNBC Video: Warren Buffett & Bill Gates - Keeping American Great
- Cisco Ups Tandberg Bid, Claims Over 40% Backing
- Signs of Stability, but 'We're Not All Satisfied': GM CEO
- Devon to Sell its Gulf, International Assets
- JP Morgan to Bid Over $3 Billion for Cazenove Stake
- Busch: US Health Care Bill a Concern for the Chinese
- Underwater Mortgages Could Sink Even Deeper
- My Market and Fed Outlook Now: BlackRock's Doll
- Farrell: The Market is Still Seeking Reassurance
- GM Cuts Losses—Plans Early Loan Repayment
- Schork Oil Outlook: Still Bearish Crude, But Skeptical
- Michelle Wie Wins, Now What?
- Taking a Page from Obama's Asia Agenda in Investing
- Warren Buffett to CNBC: 'I Haven't Bought American Express In Years'
- Gold Is in a 'Bubble' And Will Keep Going Higher: Gartman
- Millions May Have to Repay Part of Obama Tax Credit
- Madoff Auction: $4,750 for a Decoy Duck?
- Retail Sales Show Gain, But Manufacturing Gauge Slips
- Business Inventories Fall 0.4% in September
- Intel Plans to Increase Dividend 12.75%; Shares Gain
- Several Credit Card Companies See Default Rate Fall
- Fed Proposes Crackdown on Excessive Gift-Card Fees
- How Much Do You Know About Green?
RSS FEED
Charting Asia
Text Size 
Market volume is very significant in short-term trading. The relationship between price and volume provides a guide to the type of buying or selling activity that is developing. Charting Asia presents the second installment of a four-part special that looks into the price/volume dynamic.
In the last column, we looked at the trading game of Pump & Dump. This edition looks at the trading game of Hide and Seek.
Hide and Seek is when an investor tries to build a large position in a stock without causing the price to rise. Basically, this kind of volume activity is the genuine accumulation of a stock for long-term holdings.
 |
Recognition rules
· Volume increases slowly. This is steady, consistent buying
· Buying volume is larger than selling volume
· Price moves in a consolidation band and price rise is slow
· The new trend is defined with a trend line and there are many successful tests of the trend line
· Volume remains steady when the price falls. This shows investors are buyers. Confirm this with the GMMA indicator.
Trading rules
· Buy as price rebounds from the lower edge of the consolidation area
· When trend is defined with a trend line, buy when price rebounds from the trend line
· Use the lower edge of the long term GMMA as a stop loss
· Enter when price moves above the downtrend line
· Add to position when GMMA crossover develops
· Add to position after the first successful test of the long term GMMA support after the GMMA crossover.
Recognizing the correct price and volume relationship allows traders to make a better decision about the best trading or investment approach to use for the trade.
For more detailed discussion of using volume in trading, click here.
In the next column which will be published on Tuesday, we show how charts can help you Catch the Rally.
The Games Traders Play
If you would like Daryl to chart a specific stock, commodity or currency, please write to us at . We welcome all questions, comments and requests.
CNBC assumes no responsibility for any losses, damages or liability whatsoever suffered or incurred by any person, resulting from or attributable to the use of the information published on this site. User is using this information at his/her sole risk.
- Where, what, how.
- Warren Buffett and Bill Gates spoke to Columbia students, and Buffett made the students a startling offer.
- For the chief of cable company Comcast, growth has been about making deals – generally very large deals.
- Some companies may start using insurance to shift carbon risk from their balance sheets to maybe... yours?
- The president and founder of Genesis Today wants to improve America’s health, and thinks Wal-Mart can help.
- If a terrible driver on your morning commute has you feeling like you want to scream, check this out.
Data is a real-time snapshot *Data is delayed at least 15 minutes