http://www.swing-trade-stocks.com/swing-trading-blog.html Marzo 30, 2013
You've probably heard the saying that "volume precedes price". But what does that mean? It means that (sometimes) volume will increase significantly before a big move. Here is an example:
See how volume increased dramatically (bottom arrow) compared to previous days? Now look at the candle for that day (top arrow). Price didn't move much on that day. So you have a high volume day with very little price movement.Look at the 15 minute time frame for that day. You will see huge volume spikes near the end of the trading day.The breakout followed a couple days later.
Volume preceded price.