--- title: How to read the market and follow in the footsteps of large investors description: Price and volume charts can help you see what large investors are doing, giving you the opportunity to follow in their footsteps. image: https://www.isaco.co.uk/hs-fs/file-56376072-jpg/images/how_to_read_the_market_and_follow_in_the_footsteps_of_large_investors.jpg --- [![investment guidance service](https://www.isaco.co.uk/hs-fs/file-17903709-png/images/template/logo.png)](https://www.isaco.co.uk/) 0800 170 7750Monday to Friday 8.30am - 6.00pm [Client Log-In](http://members.isaco.co.uk/wp-login.php) - [![x](https://www.isaco.co.uk/hs-fs/hubfs/images/template/social-icons/x.png?width=24&height=24&name=x.png)](https://twitter.com/isaco_) - [![linkedin](https://www.isaco.co.uk/hs-fs/hubfs/images/template/social-icons/linkedin.png?width=24&height=24&name=linkedin.png)](http://www.linkedin.com/company/isaco-ltd) - [![facebook](https://www.isaco.co.uk/hs-fs/file-17902759-png/images/template/icon-facebook.png)](http://www.facebook.com/pages/Isaco/261073283963679) - [![twitter](https://www.isaco.co.uk/hs-fs/file-17903368-png/images/template/icon-twitter.png)](https://twitter.com/isaco_) - [![linkedin](https://www.isaco.co.uk/hs-fs/file-17903004-png/images/template/icon-linkedin.png)](http://www.linkedin.com/company/isaco-ltd) # How to read the market and follow in the footsteps of large investors Posted by [Stephen Sutherland](https://www.isaco.co.uk/blog/author/stephen-sutherland) on Sat, Jun 08, 2013 @ 01:30 PM - [Tweet](https://twitter.com/share) ![How to read the market and follow in the footsteps of large investors](https://www.isaco.co.uk/hs-fs/file-56376072-jpg/images/how_to_read_the_market_and_follow_in_the_footsteps_of_large_investors.jpg)One of the best ways of reading the market's health is to look at charts. A stock chart is a graph that displays the price and volume history of a given security or index over a period of days, months or years.  Price and volume charts help you to see what the professional investors are doing, allowing you the opportunity to follow in the large investors footsteps. Whether they are buying or selling, through a chart you can see what the big players are doing. Price action is how a stock or index changes in price. Volume action is the number of shares traded. In the volume part of the chart below, notice the red horizontal moving line. That represents the average volume levels over the previous 50 days.  [![Image 49 CELG](https://www.isaco.co.uk/hs-fs/file-56301533-png/images/image_49_celg.png?width=600&height=381&name=image_49_celg.png)](https://www.isaco.co.uk/hs-fs/file-56314911-png/docs/image_49_celg.png) If trading volume is above average and price action is up, institutional investors are buying (you can see an example of this below). That’s good. This is classed as healthy behaviour. [![Image 50 CPRT](https://www.isaco.co.uk/hs-fs/file-56303302-png/images/image_50_cprt.png?width=600&height=384&name=image_50_cprt.png)](https://www.isaco.co.uk/hs-fs/file-56314874-png/docs/image_50_cprt.png) On the other hand, if volume is above average and price action is down, it means institutional investors are selling. That’s not good. This is classed as unhealthy behaviour. [![Image 51 ALGT](https://www.isaco.co.uk/hs-fs/file-56304428-png/images/image_51_algt.png?width=600&height=382&name=image_51_algt.png)](https://www.isaco.co.uk/hs-fs/file-56314931-png/docs/image_51_algt.png) If volume is below average and the price action is up, it indicates little demand from institutional investors. That’s also not good. This is seen as unhealthy behaviour. [![Image 52 HEP](https://www.isaco.co.uk/hs-fs/file-56306327-png/images/image_52_hep.png?width=600&height=381&name=image_52_hep.png)](https://www.isaco.co.uk/hs-fs/file-56314871-png/docs/image_52_hep.png) Finally, if volume is below average and the price action is down, it indicates that institutional investors are reluctant to sell. This type of action is good. This is seen as healthy behaviour. [![Image 53 DLPH](https://www.isaco.co.uk/hs-fs/file-56308094-png/images/image_53_dlph.png?width=600&height=383&name=image_53_dlph.png)](https://www.isaco.co.uk/hs-fs/file-56314677-png/docs/image_53_dlph.png) It does take a lot of either buying or selling to change an established trend. By carefully analysing the markets behaviour on a daily basis, it can assist you in trying to determine if the trend has changed. If you believe it has, you can act accordingly. After analysis, if you thought the trend was up, you would invest.  However, if you believed the market’s trend was down, you could park in cash. By watching closely the trading activity, you can see exactly what institutional investors are doing with their money – effectively allowing you to get in sync, and trade with the trend, instead of against it. As always, if you have any questions or thoughts on the points covered in this post, please leave a comment below or connect with us [@ISACO_](http://www.twitter.com/ISACO_) on Twitter. ## About ISACO ISACO is a specialist in ISA and SIPP Investment and the pioneer of ‘Shadow Investment’, a simple way to grow your ISA and SIPP. Together with our clients, we have £57 million actively invested in ISAs and pensions*.  Our personal investment service allows you to look over our shoulder and buy into exactly the same funds as we are buying. These are investment funds that we personally own and so you can be assured that they are good quality. We are proud to say that by ‘shadowing’ us, our clients have made an annual return of 12.5% per year over the last four years** versus the FTSE 100’s 7.4%.  We currently have close to 400 carefully selected clients. Most of them have over £100,000 actively invested and the majority are DIY investors such as business owners, self-employed professionals and corporate executives. We also have clients from the financial services sector such as IFAs, wealth managers and fund managers. ISACO Ltd is authorised and regulated by the Financial Conduct Authority (FCA). Our firm reference number is 525147. * 15th November 2012: Internal estimation of total ISA and pension assets owned by ISACO Investment Team and ISACO premium clients.  ** (31st December 2008 - 31st December 2012).  ISACO investment performance verified by Independent Executives Ltd.    **[ To download our free report 'A Golden Opportunity' >> ](https://www.isaco.co.uk/a-golden-opportunity/)** [ **To download our Shadow Investment brochure >>**](https://web.isaco.co.uk/isaco-wealth-b) **[ To start your 14 day free 'no obligation' trial of Shadow Investment >> ](https://www.isaco.co.uk/14-day-free-trial/)**   [![ISACO Frequently Asked Questions](https://www.isaco.co.uk/hs-fs/file-17906415-jpg/docs/10_faqs.jpg)](https://www.isaco.co.uk/hs-fs/file-17912482-pdf/docs/our_10_most_frequently_asked_questions.pdf)   Topics: [ISA investing tips](https://www.isaco.co.uk/blog/topic/isa-investing-tips), [Investment strategy](https://www.isaco.co.uk/blog/topic/investment-strategy) ### Subscribe by Email [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/07d30346-56f4-4eb5-8ed0-732a7176cee7.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/07d30346-56f4-4eb5-8ed0-732a7176cee7) [![Is it time to raise cash?](https://no-cache.hubspot.com/cta/default/142026/460b895e-92d4-40cb-8d29-7790bbfaa396.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/460b895e-92d4-40cb-8d29-7790bbfaa396) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/fc21adc1-6c65-42a1-a7bc-625e3a3d87f2.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/fc21adc1-6c65-42a1-a7bc-625e3a3d87f2) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/1280942b-07b3-4031-a3e3-ca2a58a1c4a3.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/1280942b-07b3-4031-a3e3-ca2a58a1c4a3) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/89440174-6d63-4ad1-9b1f-b23afa9db5e5.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/89440174-6d63-4ad1-9b1f-b23afa9db5e5) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/0805d531-f087-4c6c-a8fd-cf98898cc3d3.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/0805d531-f087-4c6c-a8fd-cf98898cc3d3) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/c51c17cd-c584-4439-a783-bc8393f9dc7b.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/c51c17cd-c584-4439-a783-bc8393f9dc7b) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/b1a3dfec-b16c-4874-ac7b-3d9d4053d24f.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/b1a3dfec-b16c-4874-ac7b-3d9d4053d24f) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/069a2c1d-3aec-4e0f-8fda-511e276f2a54.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/069a2c1d-3aec-4e0f-8fda-511e276f2a54) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/7cf5fc26-865a-409a-9000-3b7288287a9c.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/7cf5fc26-865a-409a-9000-3b7288287a9c) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/f755ac27-21f3-431a-94ba-c88714d9f314.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/f755ac27-21f3-431a-94ba-c88714d9f314) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/72356409-308d-4e04-a834-6946c1241c5b.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/72356409-308d-4e04-a834-6946c1241c5b) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/bbd6ce7f-1a57-4c9d-9442-8c08f9f6dcf5.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/bbd6ce7f-1a57-4c9d-9442-8c08f9f6dcf5) ### Recent Posts ### Most Popular Posts ### Categories - [About ISACO (2)](https://www.isaco.co.uk/blog/topic/about-isaco) - [Achieving your investment goals (65)](https://www.isaco.co.uk/blog/topic/achieving-your-investment-goals) - [Behavioural Investing (13)](https://www.isaco.co.uk/blog/topic/behavioural-investing) - [Better performance (38)](https://www.isaco.co.uk/blog/topic/better-performance) - [Better protection (14)](https://www.isaco.co.uk/blog/topic/better-protection) - [Choosing a fund (1)](https://www.isaco.co.uk/blog/topic/choosing-a-fund) - [Client stories (2)](https://www.isaco.co.uk/blog/topic/client-stories) - [Creating an income for life (3)](https://www.isaco.co.uk/blog/topic/creating-an-income-for-life) - [Essential reading (8)](https://www.isaco.co.uk/blog/topic/essential-reading) - [FAQs (7)](https://www.isaco.co.uk/blog/topic/faqs) - [Finding a good growth fund (6)](https://www.isaco.co.uk/blog/topic/finding-a-good-growth-fund) - [Fund timing (4)](https://www.isaco.co.uk/blog/topic/fund-timing) - [Guest blogs (2)](https://www.isaco.co.uk/blog/topic/guest-blogs) - [How to Make Money in ISAs and SIPPs (21)](https://www.isaco.co.uk/blog/topic/how-to-make-money-in-isas-and-sipps) - [Investing for children (4)](https://www.isaco.co.uk/blog/topic/investing-for-children) - [Investment charges (6)](https://www.isaco.co.uk/blog/topic/investment-charges) - [Investment funds (50)](https://www.isaco.co.uk/blog/topic/investment-funds) - [Investment Guidance (4)](https://www.isaco.co.uk/blog/topic/investment-guidance) - [Investment Guidance Service (6)](https://www.isaco.co.uk/blog/topic/investment-guidance-service) - [Investment mistakes (21)](https://www.isaco.co.uk/blog/topic/investment-mistakes) - [Investment news (60)](https://www.isaco.co.uk/blog/topic/investment-news) - [Investment opportunities (10)](https://www.isaco.co.uk/blog/topic/investment-opportunities) - [Investment outlook (18)](https://www.isaco.co.uk/blog/topic/investment-outlook) - [Investment risk (8)](https://www.isaco.co.uk/blog/topic/investment-risk) - [Investment strategy (180)](https://www.isaco.co.uk/blog/topic/investment-strategy) - [Investment tutorials (17)](https://www.isaco.co.uk/blog/topic/investment-tutorials) - [ISA growth (41)](https://www.isaco.co.uk/blog/topic/isa-growth) - [ISA investing tips (50)](https://www.isaco.co.uk/blog/topic/isa-investing-tips) - [ISA millionaires (8)](https://www.isaco.co.uk/blog/topic/isa-millionaires) - [ISACO Alpha (1)](https://www.isaco.co.uk/blog/topic/isaco-alpha) - [ISACO client interviews (2)](https://www.isaco.co.uk/blog/topic/isaco-client-interviews) - [ISACO vs an adviser (8)](https://www.isaco.co.uk/blog/topic/isaco-vs-an-adviser) - [ISACO Wealth (6)](https://www.isaco.co.uk/blog/topic/isaco-wealth) - [Junior ISAs (6)](https://www.isaco.co.uk/blog/topic/junior-isas) - [Managing your portfolio (5)](https://www.isaco.co.uk/blog/topic/managing-your-portfolio) - [NISA (5)](https://www.isaco.co.uk/blog/topic/nisa) - [Retirement planning (2)](https://www.isaco.co.uk/blog/topic/retirement-planning) - [Shadow Investment (2)](https://www.isaco.co.uk/blog/topic/shadow-investment) - [SIPP investing tips (20)](https://www.isaco.co.uk/blog/topic/sipp-investing-tips) - [Stock market direction (6)](https://www.isaco.co.uk/blog/topic/stock-market-direction) - [Stock market Outlook (5)](https://www.isaco.co.uk/blog/topic/stock-market-outlook) - [Stock Market Summary (244)](https://www.isaco.co.uk/blog/topic/stock-market-summary) ### Archive - [January 2020 (1)](https://www.isaco.co.uk/blog/archive/2020/01) - [January 2019 (1)](https://www.isaco.co.uk/blog/archive/2019/01) - [October 2018 (1)](https://www.isaco.co.uk/blog/archive/2018/10) - [July 2018 (1)](https://www.isaco.co.uk/blog/archive/2018/07) - [March 2018 (1)](https://www.isaco.co.uk/blog/archive/2018/03) - [May 2017 (1)](https://www.isaco.co.uk/blog/archive/2017/05) - [March 2016 (1)](https://www.isaco.co.uk/blog/archive/2016/03) - [February 2016 (2)](https://www.isaco.co.uk/blog/archive/2016/02) - [January 2016 (2)](https://www.isaco.co.uk/blog/archive/2016/01) - [December 2015 (5)](https://www.isaco.co.uk/blog/archive/2015/12) - [November 2015 (4)](https://www.isaco.co.uk/blog/archive/2015/11) - [October 2015 (4)](https://www.isaco.co.uk/blog/archive/2015/10) - [September 2015 (5)](https://www.isaco.co.uk/blog/archive/2015/09) - [August 2015 (4)](https://www.isaco.co.uk/blog/archive/2015/08) - [July 2015 (3)](https://www.isaco.co.uk/blog/archive/2015/07) - [May 2015 (2)](https://www.isaco.co.uk/blog/archive/2015/05) - [April 2015 (2)](https://www.isaco.co.uk/blog/archive/2015/04) - [March 2015 (5)](https://www.isaco.co.uk/blog/archive/2015/03) - [February 2015 (5)](https://www.isaco.co.uk/blog/archive/2015/02) - [January 2015 (4)](https://www.isaco.co.uk/blog/archive/2015/01) - [December 2014 (5)](https://www.isaco.co.uk/blog/archive/2014/12) - [November 2014 (4)](https://www.isaco.co.uk/blog/archive/2014/11) - [October 2014 (5)](https://www.isaco.co.uk/blog/archive/2014/10) - [September 2014 (4)](https://www.isaco.co.uk/blog/archive/2014/09) - [August 2014 (4)](https://www.isaco.co.uk/blog/archive/2014/08) - [July 2014 (5)](https://www.isaco.co.uk/blog/archive/2014/07) - [June 2014 (4)](https://www.isaco.co.uk/blog/archive/2014/06) - [May 2014 (5)](https://www.isaco.co.uk/blog/archive/2014/05) - [April 2014 (5)](https://www.isaco.co.uk/blog/archive/2014/04) - [March 2014 (4)](https://www.isaco.co.uk/blog/archive/2014/03) - [February 2014 (4)](https://www.isaco.co.uk/blog/archive/2014/02) - [January 2014 (5)](https://www.isaco.co.uk/blog/archive/2014/01) - [December 2013 (4)](https://www.isaco.co.uk/blog/archive/2013/12) - [November 2013 (4)](https://www.isaco.co.uk/blog/archive/2013/11) - [October 2013 (5)](https://www.isaco.co.uk/blog/archive/2013/10) - [September 2013 (4)](https://www.isaco.co.uk/blog/archive/2013/09) - [August 2013 (6)](https://www.isaco.co.uk/blog/archive/2013/08) - [July 2013 (9)](https://www.isaco.co.uk/blog/archive/2013/07) - [June 2013 (9)](https://www.isaco.co.uk/blog/archive/2013/06) - [May 2013 (9)](https://www.isaco.co.uk/blog/archive/2013/05) - [April 2013 (7)](https://www.isaco.co.uk/blog/archive/2013/04) - [March 2013 (9)](https://www.isaco.co.uk/blog/archive/2013/03) - [February 2013 (13)](https://www.isaco.co.uk/blog/archive/2013/02) - [January 2013 (27)](https://www.isaco.co.uk/blog/archive/2013/01) - [December 2012 (25)](https://www.isaco.co.uk/blog/archive/2012/12) - [November 2012 (35)](https://www.isaco.co.uk/blog/archive/2012/11) - [October 2012 (35)](https://www.isaco.co.uk/blog/archive/2012/10) - [September 2012 (34)](https://www.isaco.co.uk/blog/archive/2012/09) - [August 2012 (36)](https://www.isaco.co.uk/blog/archive/2012/08) - [July 2012 (34)](https://www.isaco.co.uk/blog/archive/2012/07) - [June 2012 (34)](https://www.isaco.co.uk/blog/archive/2012/06) - [May 2012 (35)](https://www.isaco.co.uk/blog/archive/2012/05) - [April 2012 (27)](https://www.isaco.co.uk/blog/archive/2012/04) - [March 2012 (32)](https://www.isaco.co.uk/blog/archive/2012/03) - [February 2012 (13)](https://www.isaco.co.uk/blog/archive/2012/02) - [January 2012 (6)](https://www.isaco.co.uk/blog/archive/2012/01) - [December 2011 (3)](https://www.isaco.co.uk/blog/archive/2011/12) © ISACO Ltd, 82 King Street, Manchester, M2 4WQ. ENGLAND Tel: 0800 170 7750 | [Data Protection & Privacy Policy](https://www.isaco.co.uk/privacy-policy) | [Terms and Conditions](https://www.isaco.co.uk/terms-and-conditions) | Fax: 0870 757 8660 **ISACO Ltd is Authorised and Regulated by the Financial Conduct Authority**