How to analysis price volume action with eg

General
1

in an eg :- jindalstel, i find bid were 120450 shares while ask were 523650 share price down 1.25%.

in the eg i find there are less buyers rather than sellers, price should fall some times i find price rise, what is you interpetion.

2

Hey Martin, 

It would be tough to do a price volume analysis on a bid ask basis..instead what you should be looking for is the overall cumulative volumes. The reason is the bid and ask volume can be considered as an indicator of how volumes are building up however the orders can get canceled any time .. what really matters is how much volumes has already been traded.  

The general interpretation of price and volume is as follows..



Hope this helps. 

3 Likes
3

What exactly does one mean by “Bull Trap” and “Bear Trap”?

4

When you are made to believe that the market is likely to go up - Price going up but the volumes do not support the up move - then most likely there is no strength in the up move and the prices may collapse any time. A situation like this is called a Bull Trap. Likewise for a bear trap.

5

Thanks for the explanation. Is there any indicator that correlate prices and volume to chart bull/bear traps