Volume Interpretation Quiz Answers

This week here on Stocktradingtogo was all about volume in relation to the stock market, and to conclude the week yesterday I posted a quiz to test your knowledge of what we learned.

You can view the original questions here, and below are the answers:

  1. Shares
  2. Up ; Down
  3. Technical analysis
  4. The listed average (typically 60 trading days, or 3 months)
  5. B. Distribution Day - Since volume was higher than the day before and the stock closed down, the day is considered distribution. The reason it wasn't heavy though is because volume did not exceed the 60 day average.
  6. D. Heavy Distribution Day - Volume exceeded the 60 day average and was higher than the day before.
  7. E. None of the above - Since volume was not higher than the day before, the day does not qualify as accumulation or distribution.
  8. Distribution Day
  9. Heavy Accumulation Day
  10. The actual word is asclepiadaceous! The first "a" and "e" were switched! (you can view its definition and pronunciation here)

Comments

  1. Posted by Tom Markelson on May 12, 2007 at 7:00 pm

    An increase in share price coupled with an increase in volume is bullish. Increases in share price coupled with a decrease in volume is is not good for a stock. A decrease in share price coupled with an increase in volume is bearish. In contrast, decreases in share price with an decrease in volume is not good for bears.

    Learn more about interpreting volume with charts and deeper explainations, click Volume Analysis

  2. Posted by Tanya B. on March 2, 2009 at 2:56 am

    Hmm, interesting post. Wondering what site you did your researching through.

  3. Posted by Blain Reinkensmeyer on March 2, 2009 at 9:39 am

    Research was from my head :)

  4. Posted by mariano on February 27, 2010 at 2:09 pm

    In contrast, decreases in share price with an decrease in volume is not good for bears.

    is this correct?
    it should be not good for bulls

  5. Posted by Blain Reinkensmeyer on February 28, 2010 at 12:47 pm

    Well a stock going down in price is bearish either way. But bears should be conscious of volume, because if there is light volume consistently say over a week and prices are dropping, then all the stock may need is one large up day with strong accumulation volume for the stock to become bullish again.

    Bottom line, any time a stock moves either way on light volume it is more prone to a reversal in price.