Volume

Md. Ahsan Ullah RajuSr. Market Analyst

Alliance Capital Asset management ltd.

Here is the rule:It is not the amount of the volume that is important at previousswing highs or lows, but rather the percentage relationship compared with the previous high or low. These volume percentage relationships will determine if the market will pass through or reverse at these previous highs or lows.

The volume on the retest is 97 million — just 3 percent below the volume at the previous swing high of 100 million. The rule here is that if on the retest of a previous swing high volume declines by only 3 percent or less, it implies that upside energy is good and the market should continue its rally. In other words, volume that is very near or equal to the previous high (97 percent or more) indicates the presence of upside energy that is strong enough to push the market higher.

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