If you look at the graphs, you'll find that most of data clearly shows that changes in price do not follow changes in search volume, but it's the other way around. Increase in price usually predicts future increase in the search volume. I know it sounds stupid and boring, but that's the fact so far.
+1. this is exactly the way it works.
YES exactly. Thanks for pointing this out. Tired of the ol' physics argument... it doesn't work for markets
That is how it worked in the past. But if a big media 'event' is sudden it can hit before corresponding price increase imo.
Also if the news is about the price increase it has to come after the increase and that's what a lot of the news was last time we had a ton of news.
yes, there are no hard and fast rules. these relationships can change.
Just hope that this thread will dispel the myth of increased search volume as a generally bullish sign. So far that has not been the case.
If we believe this busted myth, people will start buying in anticipation, thereby raising the price - a rather silly self-fulfilling prophecy that always fails in the long run (unless the fundamentals change in the meantime - completely unrelated).
