VOLUME AT MINOR LOW SUPPORT
In a manner the same as for peaks, I measured the volume surrounding valleys (two days before to two days after) and compared it to the average volume over the prior month. I found valleys that had low volume were more likely to show support than did valleys on high volume: 0.56 versus 0.52, respectively. Those numbers are the average valley counts.
If you look at very high or low volume, 1.5× to 0.5× of normal, the results widen. Those valleys on very low volume showed support 0.62 times on average compared to 0.52 for valleys on very high volume. A minor low forming on low volume is more likely to show support than those forming on high volume.
- Valleys with volume half the average tend to show more support than do those with volume 1.5 times the average.
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