Tip #5: Perform Volume Analysis to Confirm Pattern Breakouts Volume is an important aspect of analyzing stock charts since it indicates the level of market participation in a particular stock.
Keep in mind it’s not the drawn chart pattern that determines the stock’s fate ... apparent strength was actually precarious, that the market was ready for a reason to flip to bearish.
The swing in MicroStrategy’s stock to a big loss from a big gain on Thursday produced a classic chart pattern that can act as a warning of further weakness. The software company and bitcoin play ...