Volume Always Precedes Price

This statement is one of the cardinal beliefs held by most technicians. It first came to my attention in the late 1970s when I read Joe Granville's book New Strategy of Daily Stock Market Timing for Maximum Profit, where he wrote "stocks do not rise in price unless demand exceeds supply. Demand is measured in volume and thus volume must precede price." In the early stages of my career, I did extensive testing of this concept and developed my own methods of interpreting the on-balance volume. It ...