Saturday, October 15, 2011

Relation of Price and Volume : Part 5

Price fall with low volume: Sometimes we see in our DSE that price is falling with low volume. If we look at the price chart we find several Lower Lows (LL) have been formed. (to know the Lower Low (LL), pls. click on the chart).



What is the reason? I think, most of the investors are staying on the sidelines with cash, and at the same time, the stock is lack of good news to stimulate the price.

What should we do now? Will we catch the share because of its low price? NO, NO, NO. We should not catch a falling knife. It is best to avoid this share and wait for a reversal. by JC

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