• 11 years ago
http://www.wealthchaperone.com/videos/methodology/
In this video by Wealth Chaperone you will learn methodology. Stocks move up or down due to three factors, volume, buying pressure, and selling pressure. Volume can also be described as momentum. In the financial market people buy stocks, this is what the volume indicator measures. If there is too much buying volume the stock will begin to fall. If there is too little buying volume the stock will likely go up. Buying pressure counts the pressure until it reaches the top or an extreme low. When the buying pressure reaches the top it will begin to come down. Selling pressure works the same as buying pressure, but in this case we count the selling pressure until it reaches an extreme high or low. If the selling pressure is at a low it means it is too low and the sellers will begin to sell again, the result of this will be the stock dropping. When the stock reaches a top there are few sellers, therefore the stock will move up. Finally this lesson will finish by explaining proprietary indicators. Proprietary indicators show extreme values in volume, and buying and selling pressure. Extremes are not exact in correlation with timing, they can be 1-2 days away from the move to 5-10 days in some cases. You must integrate risk management strategies as these indicators do not have complete success 100% of the time.