StockCiphering.Com The Financial Ad Trader

New Highs and Volume

Excuse the pun, but puts a lot of stock into New Highs and Volume, especially the latter.

Contrary to the old phrase "Buy low, sell high", buying a stock as it's bursting into new-high territory offers the best opportunity to make money quickly and profitably.

As a stock price climbs back towards its prior highs, it has to get past the resistance of all of those buyers who bought as the stock's price was falling and are eager to break even or get out with a small loss. If a stock is able to burst through the final barrier of its old high, there is no longer any overhead resistance waiting to impede its progress... there isn't a single buyer who is sitting on a loss. Therefore they are only willing to sell at higher and higher prices, and that can drive prices up in an explosive manner. provides screens of stocks that involve resistance at their highs. The Cups With Handle screen lists stocks whose charts are exhibiting that unique formation. Ceiling Bumpers lists stocks consolidating close to their 52-Week, 6-Month, and/or 3-Month highs that don't appear on the Cups With Handle screen. Finally, Ceiling Bursters lists stocks that have just burst through those levels of resistance on high volume.

Which brings us to volume...

Volume is the key component in the movement of a stock. Some traders believe that price alone reflects all the information one needs to know about a stock's action. However, volume gives a clearer picture of the financial and emotional involvement of price moves. In comparing two stocks that move up 8% for the day, especially when breaking out to new highs, the one that advances on volume that is far above average is the one that deserves attention, because it reflects a bigger commitment on the part of buyers. calculates a ratio comparing the volume of each stock against its average trading volume (50-day exponential moving average) in order to assign its Performance Rankings and reports that volume ratio in its various stock screens.
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