Chapter 7. Volume Extremes, Volatility, and VIX: Recognizing Climactic Levels and Buying Opportunities at Market Low Points

We have seen how time and relevant cycles can be used to project when stock market reversals appear likely to take place, and we have reviewed a number of market breadth–based indicators that can indicate when to stay in rising markets, when to exit, and when market declines appear likely to come to an imminent end. In this section, we review a trio of related market timing indicators that reflect buying and selling pressures as well as the emotional tone of the stock market. These indicators also frequently provide timely and significant, frequently major-term, entry and exit signals.

The concepts involved are not complex; ...

Get Technical Analysis: Power Tools for Active Investors now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.