4. Volume Analysis
“Volume is the steam in the boiler that makes the choo-choo go down the tracks.”
—Joseph Granville
Volume
Even the most casual investor knows what matters about a stock—price. You are taught early on to buy low and sell high. The evening news tracks the major indexes as if they were horse races, so most people naturally believe that a higher close is good news and a lower close is bad; yet you are left none the wiser about navigating your own finances by knowing this daily result.
Price surely matters. But this is a market. Waiting for the final number on a given day or week tells you what happened but not why or, more importantly, how. Picture a mall parking lot. Is it full or half-empty? Is it Saturday or a workday? How many ...
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