A Warning That The Stock May Have Topped Out-How To Recognise It?

A Warning That The Stock May Have Topped Out-How To Recognise It?

article from http://www.investmentlink.blogspot.com/
At the end of a market move heavy volume is usually pure distribution, as stocks go from strong hands into weak hands, from the professionals to the public. It is deceptive to the public who view this heavy volume as the mark of a vibrant, healthy market going through a normal correction, not a top or a bottom.

One Day Reversal: This is a stock movement that often happens at the end of a long-term move. It definite as a one day reversal occurs where the high of the day is higher than the high of the previous day, but the close of the day is below the close of the previous day, and the volume of the current day is higher than the volume of the previous day. This secnario was a screaming "danger signal". This is a danger signal and must be heeded!