i think this way we can understand the movment of that stock.
Another question is when a stock goes down with a big selling volumn in a day and for more than a day. should i expect than stock to bounce back or short time maybe or a day, so i can take some profit from it. what are the signs of it bouncing bacnk.
You may choose different parameters for selecting those stocks, maybe their VOLATILITY (u may choose high if u r a risky trader, n low if u r risk averse), LIQUIDITY (volumes), SECTOR (maybe u r able to assess the effects the environmental changes on a particular sector stocks better thn others) n so on.
As far as the 2nd question is concerned, stocks rise n fall, thts wht they do. Volumes cannot be a sole indicator, for attempting to predict its future movement, cz no matter how big expert u are, u may never be able to know whos buying/selling the stock at a particular time n fr wht purpose (cud be a big seller/operator, trying to offload its positions to book profits for the last time, or it may be backed by genuine retail investors, trying to sell after some poor expectations/herd mentality, or cud be due to a heavy selling done by insiders jst before some bad news is gonna be declared)
So its always best, as a trader, to rely more on the technical indicators n chart patterns, that appear to work more frequently in helping you make predictions, n ALWAYS use STOP LOSSES, wenevr u r trading. wtever trading, u nvr know, wen a particular security starts moving against ur expectation, so stop loss helps in minimising losses, if any…
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