Term:MARKET ACTION

The price of trades and the volumes changing hands during the trading day. The best way to see this is to look at either a candlestick or a bar chart together with a volume histogram. These will show you the range of trade which is the gap between the highest and lowest prices reached during the day – which is a good indication of the level of uncertainty among investors. It will also show whether the share closed near to the upper or lower end of that range – which is an indication of bullish or bearish sentiment. If a share closes below its opening price, the bears are said to have won the day and vice versa. You should study the daily market action of the shares that interest you.

Disclaimer - All information and data contained within the PDSnet Glossary terms is for informational and educational purposes only. PDSnet makes no representations as to the accuracy, completeness, suitability, or validity, of any information, and shall not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. Information in the PDSnet glossary terms is based on the author’s opinion and experience and should not be considered professional financial investment advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Thoughts and opinions will also change from time to time as more information is accumulated. PDSnet reserves the right to delete any glossary term for any reason.« Back to Glossary Index