CAN SLIM(10)

Supply and Demand(2)

Winning Characteristics

Watch the demand for shares by looking at the Volume % Change for each of your stocks.

It will show you immediately how much a stock traded vs. its average daily volume over the last 50 trading days.


For example, a stock that trades 100,000 shares on average will have a 50% Volume % Change if it trades 150,000 shares on the day.


Stocks closing at their highs for the day or gapping up in price can indicate strong demand.

Companies buying back their stock in the open market and companies showing stock ownership by management can be positive indications.

When a stock breaks out of a price consolidation area, trading volume should be at least 50% above its average daily volume, indicating strong demand.

In many cases, a strong stock breakout will see volume up 100% or more for the day, indicating solid buying and the possibility for further price increases.


Investing Tip:

A stock moving up in price on lower than normal volume could be a sign of weakness. Look for strong demand supporting price increases.