Term of the Day: Low Volume Pullback

	View online | Add Investopedia to safe senders list September 6, 2013 Dictionary Investing Markets Personal Finance Active Trading Forex Professionals Tutorials Low Volume Pullback A technical correction toward an area of support that occurs on lower-than-average volume. The low volume is a signal to traders that the trend is not reversing and that it is only the weak longs looking to lock in a quick profit. Frequent moves that occur in the opposite direction of a trend, which are accompanied by low volume, are normal fluctuations and generally deemed to be insignificant. On the other hand, a large spike in volume in the opposite direction of the trend could be used to signal that the smart money is starting to look for the exits and that the trend is getting ready to reverse. Investopedia Says: Many technical traders will try to enter a position on the short-term weakness seen in a low volume pullback because... Learn More Share: Support And Resistance Basics Determining future levels of support can drastically improve the returns of a short-term investing strategy... Share: Using Volume Rate Of Change To Confirm Trends Significant price action will trigger the interest of analysts. If price movements are significantly less than 5 to 10%, you might... Share: On-Balance Volume: The Way To Smart Money Thus, the term "smart money" begins to appear crystal clear - the institutions are buying the stock of the "average Joe" at... Share: Tales From The Trenches: Volume Confirmed Broadening Pattern It would have looked like a reversal of the uptrend was underway when the price fell below the lower trendline, but the reversal... Share: Fundamental Analysis For Traders Industry groups can be compared with other industry groups, while specific companies within those groups are compared... Share: Managing Interest Rate Risk These products all provide ways to hedge interest rate risk, with different products being appropriate for different scenarios... Share: **NEW** Subscription Services: Income Investing subscribe now! ETF Investing subscribe now! Commodities Trading subscribe now! Options Trading subscribe now! Futures Trading subscribe now! Subscription Services: Investing Basics subscribe now! Warren Buffett Watch subscribe now! Forex Weekly subscribe now! Professionals In The Money subscribe now! Chart Advisor subscribe now! Stock Watch Weekly subscribe now! Personal Finance subscribe now! News To Use subscribe now! Related Slideshows: 1. 3 Key Signs Of A Market Top 2. 6 Ways To Make Better Options Trades 3. Top 7 Technical Analysis Tools 4. 10 Options Strategies To Know 5. 10 Tips For Getting A Fair Price On A Home Related FAQs: 1. Is it possible to beat the market? 2. What is the difference between positive and normative economics? 3. If you have a house that is under your company name and you want to sell it back to yourself, do you have to pay capital gains taxes? 4. What is the difference between weighted average shares outstanding and basic weighted average shares? 5. Where do most fund managers get their market information? Videos More Videos » The Nash Equilibrium Behavioral Finance The Options Premium Trendlines Open Market Operations Explained You are currently subscribed as: udin.n.teta.finance@blogger.com Unsubscribe | Manage Subscriptions | Subscribe Investopedia.com A Division of Valueclick, Inc. Copyright © 2013 All Rights Reserved Follow us on: