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CHAPTER 7 - The Facts on Volume > THE OTHER SIDE OF THE COIN
THE OTHER SIDE OF THE COIN
Let’s next look at the equity line of buying when the five-day moving average of price is greater than the prior day while the five-day moving average of volume is less than the prior day (see Figure 7.2). Here we have advancing price on declining volume, something the so-called experts of the business tell us is bearish.
While not wildly bullish, the equity line from this strategy is certainly better than the price/volume pattern that is generally put forth as being bullish. Interesting, isn’t it!
FIGURE 7.2 S&P 500—Price Up, Volume Down