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Find: Market volume increase sellers turning buyers example change figure down.

Volume in a chart is useful for identifying turning points in a market. Consider a falling market; in order for the trend to reverse from down to up, conditions have to change. In a down trending market sellers are in control (overall), and for the market to turn buyers need to take control: buyers have to come into the market in sufficient quantities to overwhelm the sellers. When buyers come into the market, sufficient to overcome sellers, the volume will increase. An increase in volume does not always coincide with a turning point in the market, and an increase in volume does not always mean the market is turning; but often times, when a market has been moving in one direction, and there is a significant increase in volume, it signifies a change in the balance of power. A change in the current balance in power signals a turning point in the market; or if not a significant turn, a pause at least. 42 Example 1: Again if you look at the chart for March 18th (figure 19), you will notice that as the market rose from the 10:12 low of 5311 to the 10:38 high of 5336, the volume increases. The increase in volume is evidence of resistance; as the market rises so it meets more sellers, until the buyers are exhausted and the sellers gain the upper hand, forcing the price back down. Figure 19 43 Example 2: Another example comes from later in the same day. Figure 20

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How To Trade The Futures Market

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