16. Volume-Weighted Price Indicators
“As a primary principal of economics, it is assumed that if a large number of shares are offered, the price will be depressed; or conversely, if there is a substantial demand for shares, the price will rise. However, a study of the subject indicates that this theory does not always hold true during short periods of time, although in the large and long term trends, there is no doubt of its validity.”
—Harold M. Gartley
In terms of technical analysis, I believe volume-weighted price indicators represent perhaps the brightest area of exploration. It is this area where I focus the majority of my work toward the discovery of new applications. By applying the corresponding volume to price, volume-weighted price ...