Spoiler Alert
In a Word………. Volume !
I do not aspire to the theory that price rising on Lower and Lower Volume is a Good Thing !
Sorry Patrick…I need a lot of proof on that point
In my experience Low volume rising is just a sign of no sellers….and fewer and fewer buyers
Interpreting Price and Volume Action
Price action reflects investor sentiment. If a stock is rising, investors are eager to buy; if it is falling, investors are eager to sell. But for a move to be valid, the stock price action must be confirmed by volume. As technicians say, volume goes with the trend. Volume shows how much conviction investors have in a trend.
When you multiply the number of shares traded by the current stock price, you get the total dollar amount that investors are willing to put at risk. Low volume means few investors are putting only a little money at risk. You cannot trust such price moves, as they are fickle and can easily reverse.
Indecision or Uncertainty
When things are unclear, many investors tend to stay on the sidelines and stop trading, so the volume dries up. But if some traders feel compelled to act out of boredom or to entice others to act, their trades can push prices up or down in a slow market. Other traders may act prematurely, hoping to be ahead of the crowd. But if others do not follow those moves, stocks can quickly return to their previous levels.
Please prove me wrong
This is a seriously bad divergence in price and volume IMHO
I am seeing on my account that a lot of PM stocks have heavy volume and above average volume today.
Unlike GDX, the trading volume for individual large cap gold mining stocks has been fairly strong for the past few months.
Perhaps manic day traders are now behaving like deer caught in the headlights?
It’s possible that a lot of people are not believers yet in this move, or holding on to hope that the DOW etc will go on a bull run. When they see the move in gold and PM stocks are real the volume will come in. I hope.
Point and case! Hope this response is to your satisfaction! 😉 https://goldtadise.com/?p=463060
That Makes MY Case…in every instance you show of Price rising and Volume falling the end result was a hard DOWN after new highs.
Google : What does it mean when Price rises and volume falls
EVERY entry says Bearish.
You have to see volume as the crowd. Sure they get in on a breakout spiking it.. and usually price has moved already +50% off bottoms before that happens but you also see them at blow off tops in masse and at blow off bottoms… They amplify moves.. but the price action could of moved ALOT while you were worrying about them.