Volume Short Sale

Short selling can be a signal for sentiment change and help you identify potential tops in stock prices. Volume Short Sale is the reported short selling volume for the particular stock you are studying. Keep in mind that short sale volume information is only report at the end of the trading day and, therefore, this indicator will not show intraday short sale volume details.

Volume Short Sale in Practice

The primary method for reading Volume short sale is to look for periods of increased short sale activity in stocks that have gone through strong rallies. Notice, in the example above, during the first stages of the rally short sale volume stayed relatively flat. However, during the later phases of the rally short sale volume reached a heightened level. The extra short sale activity can act as a signal that the rally is nearing its final stages.

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