High volume on an up day is typically seen as a sign of institutional accumulation. It is generally thought to be a good thing. I put today’s action to the test:
Very impressive results. Winners swamp losers both when looking at the percentage of wins and the size. Also notice the healthy profit factors in the last column. (Profit factor = Gross Gains / Gross Losses.)
Historically, high volume days under the 200-day moving average where the market is up strongly like today seem to have provided a nice upside edge over the next 1-20 trading sessions.
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