Does volume figure into your trading?

The volume spikes are only a "heads-up". The important clues are the tests for no supply & no demand on low volume. See Richard Wyckoff's theory.

I'm impressed with Bill Duryea of ioamt.com, has the nuances of volume well documented.
 
I trade on very fast time frames and find volume critical. But that's just my approach and what it needs.

Quote from reno4nook:

The importance of volume is relative to the time frame used.

The longer the time frame, the more important volume becomes.

i.e. a day trader who scalps 10 slices a day is probably less concerned about volume that a swing trader
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Yes, volume figures heavily into my trading.

I get so much pressure from my sub LLC to trade volume so I only trade thick stocks with big size for tiny moves.
 
Quote from NY0BScalper:

Yes, volume figures heavily into my trading.

I get so much pressure from my sub LLC to trade volume so I only trade thick stocks with big size for tiny moves.
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Good Point

I stay away from illiquid stock as well - so from that standpoint I look at the volume
 
You definitely have to turn the volume way up when you're trading. Keeps you in the zone. None of that weak, soft music either. You can't trade when you're happy, you must be angry.

High volume helps attain this mindset.
 
You also need to make sure you use a high volume hairspray to make it look like you have more hair than you do. Can't be trading and worrying about a bald spot showing.
 
Quote from Joe Ross:

It didn’t in the past because volume was a day late and a dollar short, when trading the daily charts. But these days, where volume is live, it does count.

Here’s a simple idea that works well for indexes. Most people ignore volume as an indicator. I think it’s overlooked and I will show you here how to use it to figure out possible turns in the market. The concept is that of a volume spike. If you will look at just about any weekly chart of the S&P 500, you will see what I'm talking about. Note the volume spikes that occur at the turning points in the market. This occurs when large numbers of contracts change hands. Usually it happens when the smaller trader gives up and sells his contracts. If enough traders do this at once and the price is right the professionals will come in and snatch up those contracts.

Therefore you have this large volume that occurs right at the bottom of a decline as the market is churning. The contracts move from the weak hands (the man on the street) to the strong hands (professionals).You need to look for volume that is larger than the last 10 bars volume. This is not cast in stone but is generally a good average to go by. You might decide that 8 bars are enough. It also helps if the volume is substantially larger than the previous volume and is accompanied by a large downward move in price. I wouldn’t necessarily trade this as a standalone indicator but use it as a general warning of a possible change in Market direction. Does this work with intraday charts?

Absolutely. Volume is important.
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Can't pass this one up, Mister Ross. Not sure what timeframe you're referring to. You use the word contracts, but contracts have underlying elements.

In a capitulation move, yes high volume would suggest strong hands. NYSE specialist and how he acquires dirt cheap inventory quickly comes to mind, but in general:

High volume = public

Public = weak hands.

As you know or should know , an NYSE specialist, since 1949, can and do establish (and unwind) tax-segregated omnibus accounts, exempt from Regs T and U aside from their day in day out perpetual trading accounts toward their "duty" of maintaining fair and orderly markets.

Any sharp fast intra-day moves south is the specialist racing to cover his short with minimal public participation.

Conversely, IF he wants volume, he induces it. Opening gap with a pithy little news alibi is ideal.

And............where (or should I say who), do headfakes come from?

In contrast, an omnibus can take years (of volume) to establish and a lesser number of years to distribute. KO and DIS come to mind. Might even be the case for AAPL (no specialist but a MM).

Volume does indeed keep a spread tighter than it otherwise probably would and volume satisfies the primal instinct of safety in numbers/being WITH the crowd, but other than that, the only volume that truly counts is YOURS.

You transact in PRICE.
 
Quote from larrybf:

volume is my only indicator usually
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"Only" ...........strong word.

Can you say narrow mind?


I've got a cat that, when sitting in front of an aquarium, will lunge at anything that moves. Seems to stay entertained. Ahhh, but does he ever catch anything?

I guess I shouldn't talk, rather than money, I come here for entertainment too.
 
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