If what matters is the movement of the price to make money or lose money, why look at the volume?
Do they find you any use in short-term operations?
Do they find you any use in short-term operations?
Does volume matter?
- Thread starter trader1974
- Start date
Food for thought for OP... (hate to disagree with an old timer like you Max, but this is my official view...)
1. Volume is not only NOT important... considering volume in trade decisions will cause you to miss good plays. Shouldn't cause you to make bad trades, however.
2. Having the "X" axis be based upon volume instead of time is of no consequence. Another way to think of "volume bars" is "the time it takes for ____ contracts/shares to cross". And as much of the market's significant action is based upon "monkey see, monkey do"... traders need to be seeing what others are seeing... that is "time based charts" (though they won't be significantly different from volume based charts at the important points).
(Years ago I had a couple of custom "volume tools".. which correlated well to market turns. Over time, they correlated less and less to the point that sometimes they'd become the opposite of price action. When I recognized this, I removed volume from all of my charts and considerations. The only legit use of volume I see now is the size of the bid/offer and the daily handle to see how much of a large-for-me play I might make.)
1. Volume is not only NOT important... considering volume in trade decisions will cause you to miss good plays. Shouldn't cause you to make bad trades, however.
2. Having the "X" axis be based upon volume instead of time is of no consequence. Another way to think of "volume bars" is "the time it takes for ____ contracts/shares to cross". And as much of the market's significant action is based upon "monkey see, monkey do"... traders need to be seeing what others are seeing... that is "time based charts" (though they won't be significantly different from volume based charts at the important points).
(Years ago I had a couple of custom "volume tools".. which correlated well to market turns. Over time, they correlated less and less to the point that sometimes they'd become the opposite of price action. When I recognized this, I removed volume from all of my charts and considerations. The only legit use of volume I see now is the size of the bid/offer and the daily handle to see how much of a large-for-me play I might make.)
Last edited:
I scrapped volume as a primary indicator long ago. It can be useful for finding exhaustion in the markets but I tend to agree with Scat. I missed way too many moves because of looking for volume confirmation.
That's why don't use time based candlesticks. It is time consuming.
a lot of very precious time will be lost looking at price and volume bars.
Use volume based candlesticks.
The only problem is that only some charting software has that feature.