And during long periods of little interest, price can reach important levels on very little volume. At these times, insiders will test the breakout waters to see how much new trading interest they can generate. Although each issue has its own personality, most emotional market behavior unfolds in a straightforward manner. Price will respond with sharp movement in the direction of the impulse but then pause to test demand with short pullbacks. These countertrend movements highlight the real challenge for tape readers.
Volume can dry up at any moment and for no apparent reason, trapping one side in a sudden reversal.
More information does not necessarily improve trading results. Unfortunately such information may focus the trader on the process rather than the result. The final resolution of this price competition often presents more valuable signals for profitable execution.