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Bulish Volume Accumulation Bullish volume accumulation (also called buying volume accumulation) is defined as a volume accumulated during the price up-move. The same as with big Bullish volume surges, big Bullish volume accumulation may push indexes and stocks into overbought condition when those who wanted to buy already bought and the number of buyers who pushed the price up become exhausted.
In general when we start to see decline in the Bullish volume accumulation after its increase we may assume that the shift in supply/demand balance occurred. The number of buyer started to drop while the number of sellers willing to sell at high price started to increase. This change in the sentiment may indicate trend reversal and depending on how big the Bullish volume accumulation is we may anticipate deep or shallow move down. |