Volume Is Key

When a stock rises or breaking out of a bullish formation must have an increase of 50% or more by volume to validate the move. This works just like the thrusters of the space shuttle. The larger the volume, the greater the thrust a higher floating stock! You always want to increase buying in a stock to see. It validates your opinion that it is a stock that you want to manage, because it is clear that everyone wants to own it. This upward movement to a higher volume creates momentum which pushes the stock high and in turn brings in more buyers.

The same is true for the market. The only way to confirm if the price action you see is real is to see if you have a huge increase in volume to confirm.

According to Bill O'Neil, the founder of IBD, you want a 1% or more puts the market averages show an increase in the volume of the previous trading day. This is called a 'followed by day. "All the major market movements have started with this kind of price and volume action.

Part confirms price action .... IT is just common sense.

Do not panic in those first few minutes when your stock opens underwater. Keep your cool and know that the first half hour is often bizarre. If an hour of trade goes by and your stock has not done squat, it's time to consider alternatives, but if it makes it way back to the top, it is usually best to keep it in the game.