Major Divergence on Volume Adjusted Price Chart - ALERT
Price volume trend adjusts the price of a security based on the volume that was required to move the price. As you can see, upwards volume has almost completely disappeared, and the volume adjusted price is dramatically below where the current price is relative to the last time we were testing this range.
This is major divergence that suggests selling volume has begun to dramatically outweigh buying volume, and is a leading indicator of where sell side pressure could correct the price to. Even in this minor consolidation pattern that we have been in the past 48 hours, you can see that the volume has been to the downside and the price during this consolidation period should actually be flat adjusted for volume, rather than up somewhat. Not a bullish sign at all.
This implies that the bid order books are very thin, and small volume sells have been able to move the price down substantially.
This is major divergence that suggests selling volume has begun to dramatically outweigh buying volume, and is a leading indicator of where sell side pressure could correct the price to. Even in this minor consolidation pattern that we have been in the past 48 hours, you can see that the volume has been to the downside and the price during this consolidation period should actually be flat adjusted for volume, rather than up somewhat. Not a bullish sign at all.
This implies that the bid order books are very thin, and small volume sells have been able to move the price down substantially.