What is "Volume" and how come high volume drops the price?
This shit seems backwards to me.
Volume of trade? It means how many the amount of securities bought/sold in that period. High volume is found most commonly in bear markets, and to a lesser extent bull markets.
>>1086575
Volume =/= Price change
Consider the following scenarios
>Company makes good announcement
>high volume cuz people are trying to trade news
>price goes up
>company makes good announcement
>all previous shareholders think the market has underreacted and refuses to sell at current price
>no volume, but a few people sell at a 30% gain cuz
>company makes bad announcement
>previous shareholders think market overeacted/are being stubborn and not cutting loses
>no volume, but, massive price drop
>company makes bad announcement
>shit keeps freefalling
>shareholders cut their losses making It free fall more