PPR (Pocket Pivot Review) - RVBD has unusual big block volume at the close

Published : October 4 2010 at 22:31 ET

For those who hold a position in  RVBD, the high volume spike in RVBD looked suspicious especially on a day such as today. It looks as if over 7.6 million shares of RVBD were traded today around the close. This is significant. You might want to keep your stops tighter than normal by using the 10-day moving average as your sell guide even though RVBD has been shown to frequently violate it.

That said, it is best to keep price/volume interpretation on a daily basis, rather than scrutinizing the intraday trade which can end up costing you time and take your focus away from the bigger picture of profiting from longer term trends in the stock.

I have found that aberrations in volume due to big block buying or selling, if material, can show up in the chart in the days ahead in the form of additional buying or selling pressure, thus if this is a sign of selling pressure ahead, my stops will take me out of the stock, and if this is a sign of buying pressure ahead, the stock may set up another pocket pivot where more shares can be bought.

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