Want to profit from Volume? Here’s how.

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Want to profit from Volume? Here’s how.

Apple is the most widely held stock in America.

If you look at the daily chart, you can see it has been in an uptrend for quite some time. There was a brief pull-back in late June, and then, it continued upwards on declining volume.

Apple Daily

However, notice throughout the pullback, it didn’t break the Stop or Crash Barrier indicators (indicated by the green crosses and the solid green line).

Now, notice the point where I’ve marked the chart with a cyan-colored arrow. You can see that when prices began to rise, volume was increasing and how it pushed the market up.

Next, see the large magenta-colored bar on July 8th? That tells us the market will most likely go into a pause (in fact, this Widebar indicator is accurate about 80% of the time).

As I write this weekly newsletter (on Monday, July 14th), you can see that the current bar is pushing out above the magenta bar.

But please remember, if you’re trading is based on daily and weekly charts, I don’t consider there to be a breakout until ALL of the current bar is above the support or resistance.

At the moment, the current bar is straddling the resistance, and you can see this if you draw a line off the top of the magenta bar.

So, I would still say that this market is currently in congestion on neutral volume.

Now, if we look at the weekly chart, you can see that Apple is in a power trend up.

Apple Weekly Chart

And, you’ll also notice, this is happening on green buying volume, with the Hawkeye trend dots moving up in a very orderly manner.

So, all of this points to a market that is being accumulated.

But of course, if you look at lower time-frames (like the daily), you’ll see the whip-lash of the vibration, but it holds firm in this trend.

It appears that this trend will continue its way up, providing the overall index goes up.

So, what is the Hawkeye perspective on Apple?

Apple is in an uptrend, it’s in congestion on the daily, working its way out of the wide bar range, which occurred on the 8th of July, but is in total harmony with the weekly chart.

Good trading!

Nigel Hawkes


[The red and cyan arrows are for illustration only and are not part of the software]