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Can volume bars be misleading?

QuestionsCategory: QuestionsCan volume bars be misleading?
Andrew Keene asked 2 years ago
On 11/21/22 XLE has a red daily volume bar 55% above avg.  However the low of the day was around 87 and the stock closed around 91. Looking at the hourly it was clear the heavy volume came in to push the stock up but because it still closed lower than the previous close it shows up as a red bar.  This was clear to me because i was paying close attention to xle that day, but it seems that similar dynamics can be at play in other stocks, and when you scan daily charts big volume bars can be very misleading...any thoughts?
1 Answers
Avatar photoOwen Staff answered 2 years ago

Hi Andrew,
Pat made this video for you...