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re: Official Erin Energy (ERN) thread
Posted on 6/19/15 at 11:01 am to Omada
Posted on 6/19/15 at 11:01 am to Omada
quote:
Volume shows how strong a stock movement is. Think of a supply-demand graph in economics. Increased demand=price increases. Increased supply=price decreases. The volume, along with how much the price went up, should indicate how much increased demand there is. And the more demand there is, the harder it will be for the price to reverse because it'll take demand to drop and/or more supply to become available. Lighter volume=less demand to overcome for the price to reverse.
Make sense? If not, I can try to come up with an explanation for a 10 year old like you suggested, but let me think up a fart joke to use in it and whether I'll use superheroes or dinosaurs in my example.
said a different way....
increased volume shows conviction in the move whether it be up or down....
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