Low volume is a sign of caution. Price movement associated with low volume may be noise. High volume is a sign of things to come or a confirmatory sign of trend.
High volume with large price movement may indicate continuation of trend. High volume with low price movement may indicate reversal of trend.
Tuesday, 23 April 2013
How likely is suspension?
I once checked that the suspension rate in SGX is about 3%. This is the possibility that a stock will get suspended in its lifetime. The chance that I will encounter suspension while holding a stock should be much lower as I don't hold it for a lifetime. One way I can avoid getting hit by suspension is to shun small caps.
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