Monday, July 14, 2014

Rallies on Volume Thru Resistance vs Rallies on Low Volume To Resistance

One of the many things to be aware of while trading is trading breakouts and rallies.

A key thing to take note of during a rally is the volume of the rally and if the rally goes through resistance.  Below are some screenshots taken today (14 July 2014) on some stocks that rallied on some strong volume:

TSLA [Daily Chart] showing a rally through the 9SMA (blue line) and 21 EMA (little triangles)

AMZN [Daily Chart] showing a rally through the 9SMA (blue line) and 21 EMA (little triangles)

These are strong moves as opposed to the examples below who were green on the day but really only rallied to resistance.

DO rally on less than average volume to the 9SMA (blue line)

LNKD rally on less than average volume to the 21 EMA (triangles)


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