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BASIC CHARACTERISTICS OF VOLUME
Answers
1. C. When volume falls and the price rises, the trend is suspect and usually results in a decline. While the odds favor such an outcome, there is certainly no guarantee that this will happen.
2. B. When the price rises from a selling climax on falling volume, this is normal. Since selling climaxes are normally bullish, this represents an exception. Also, we find situations in the charts when the rising price/falling volume rule does not work, even though this is the norm.
3. B. While not a perfect indicator, record volume is usually a strong and reliable signal.
4. B. Because rising volume and falling prices is a bearish characteristic.
5. C. This is usually a bearish characteristic.
6. C, A, and B. ...
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