VOLUME AT MINOR HIGH RESISTANCE
When I separated the results according to volume surrounding the first peak, I found no difference in future resistance. I computed the average volume two days before to two days after the peak and compared that to the prior month (21 trading days preceding 2 days before the peak so as not to overlap the periods). The ratio of the shorter average to the longer one determines whether the peak occurred on high or low volume.
Peaks that formed with above average volume had an average of 0.61 peaks that stopped near the same price (that is, they showed overhead resistance). Those peaks built on low volume showed an average of 0.60 peaks stopping near the same price in the future. In other words, a tie.
When I filtered the numbers, I found that peaks on very high volume (1.5 times the average) showed 0.63 peaks in the future compared to peaks on very low volume (0.5 times the average), which showed 0.69 peaks in the future.
In other words, peaks that have lower than average volume tend to exhibit more overhead resistance, but the differences are slight.
- Peaks with volume half the average tend to show more overhead resistance than those with 1.5 times the average volume.
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