Volume and Open Interest
Tops and bottoms can also be formed on very low volume. Figure 6.16 depicts
a series of low volume reversals consisting of both low volume tops and bottoms.
We notice that a low volume top or bottom is formed in the market whenever a
lower volume threshold is tested, indicated by the time lines located at the circles
shown on the daily chart of Apple Inc.fIgure 6.15 (Volatility Filtered) Selling Climaxes on the Continuous Daily Chart of
Silver.
Courtesy of Stockcharts.comfIgure 6.16 Low Volume–Based Reversals on the Daily Chart of Apple Inc.
Courtesy of Stockcharts.com