CAN SLIM(9)

Supply and Demand(1)


Our study of the greatest stock market winners validates what most investors understand.when demand for a stock outpaces supply, the price usually heads north.

The best way to measure a stock's supply and demand is by watching its daily trading volume.

When a stock rallies up in price, you want to see volume rise at the same time, which may represent institutional buying that can really power a stock's move.

When a stock pulls back in price, you want to see volume dry up indicating no significant selling pressure.