[pcabc]

Firstly, i'm not sure i understand why volumes are important. Indeed in the books he explains than if volumes rise with the break out, it's a good sign because it shows that people are willing to buy. Ok, but it also shows that people are willing to sell...if nobody want to sell even with a rising price, which would also be a good sign, then volumes wouldn't rise. So do you have an explaination about it ?

The idea is that we want to buy stocks that are going to move significantly. To move significantly there must be sufficient buying interest. The rising price, on volume, signifies more buying than selling pressure and the volume that there is an increase in interest. If little volume accompanied a rise then it would show that there was a lack of buying interest.

Secondly, at page 151 of "secrets for profiting in bull and bear markets", the chart shows an example of a buying opportunity according to him. However the MA is still declining (even if the price is beyong the MA), so i don't understand, i thought we are supposed to avoid a stock with a declining MA, is it right ?

Given that the point is made repeatedly regarding only buying above a rising MA I assume that that particular chart was drawn a little sloppily.

Finaly does he use a simple or an exponential MA ?

Thank you very much

The book discusses simple (pages 13-14) MAs but the Mansfield charts use another form of weighted MA (page 25).