Heavy Volume Off High
Note: The historical stock examples given below are for EDUCATIONAL USE ONLY. They ARE NOT to be used to make buy/sell decisions in today's market. For more information, please read the HSR Terms of Use.
Description
After making a new high the prior week, price makes a lower high AND closes down for the week on record volume.
Behavior Notes:
- Record volume can mean the heaviest distribution week of the uptrend or in the stock's history.
- Heavy Volume Off High (HVOH) often shows up above the 10 Week MA.
What you need to know
Heavy Volume Off High (HVOH) is beneficial to recognize because many HVOH signals trigger above the 10 Week MA.
This means that if you're not watching price every week, you may miss an HVOH signal because price doesn't always break an obvious support level (see chart example 1A below).
Heavy Volume Off High may lead to the following:
- Bump in the Road - Short term weakness that's shrugged off by a bullish trend.
- Extended Basing Period - Price tops, but then trades sideways for an extended period.
- Major Tops - Price breaks off a high and plunges 50% or more.
Historical Stock Chart Examples 1A & 1B: Tata Motors (TTM) 2010
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Click to enlarge 1A
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Click to enlarge 1B
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Please >>CLICK HERE<< to go to the next price behavior within Topping Behaviors.
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