Stock Volume and Price Trend from Local Exchange

Question

As i see, while trading you can look at price charts and trading volume to make some guess of price trend. This may or may not work. But every time we look at the trends, they are from our local stock exchange. Like for me some stocks have very low trading volume listed on Hamburg Exchange. But at the same time this stock is being actively traded in US exchanges which can be affecting the price in real time, right?
So this means unless you are monitoring the most high volume exchange around the world, you are simply fooling yourself with the parameters you are seeing.
How can we cope with this situation?

Bob Baerker · Accepted Answer

Determining the trend of a stock is quite easy.  You can:

Scan a chart visually for higher highs (or lower lows)
Draw trend lines
Utilize Point & Figure charts
Use trend following indicators such as moving averages, AMCD, Bollinger Bands, On Balance Volume, etc.

There's a problem with this.  It's a look back at where price has been and predicts nothing going forward.  Taking a trade in such instances is merely based on the hope that the trend continues.

Stock Volume and Price Trend from Local Exchange

One Answer

Add your own answers!

Ask a Question