Entering a Trade Based on Volume

[Jetheat]

I would like to learn how to use volume as an indicator for fine tuning an entry.

I would like to see how other people read volume and what runs through their minds when using that for entry.

a) Do you use the volume figure from say coinmarketcap.com or do you use the volume spikes on the chart?

b) If you use the figure from coinmarketcap, how do you use that figure to determine entry?

c) If you use the spikes on the chart, how do you use that to determine entry?

d) If you use the spikes on the chart, which timeframe do you use it on?

e) Whatever the figure on the chart or the coinmarketcap website, how do you decipher the figure?

f) Or do you look at the rate of change in the volume by continuously refreshing the page?

I'd love to know how you experts use the volume for tuning your entry.

Appreciate the help,

JH

 

[Stocktracker]

I would like to learn how to use volume as an indicator for fine tuning an entry.

I would like to see how other people read volume and what runs through their minds when using that for entry.

a) Do you use the volume figure from say coinmarketcap.com or do you use the volume spikes on the chart?

b) If you use the figure from coinmarketcap, how do you use that figure to determine entry?

c) If you use the spikes on the chart, how do you use that to determine entry?

d) If you use the spikes on the chart, which timeframe do you use it on?

e) Whatever the figure on the chart or the coinmarketcap website, how do you decipher the figure?

f) Or do you look at the rate of change in the volume by continuously refreshing the page?

I'd love to know how you experts use the volume for tuning your entry.

Appreciate the help,

JH

You check the volume spikes @ the chart pivot points & you do that in unison with the speed of the ticker tape.

for example; if the volume spikes @ the support line on the chart and at the same time the ticker tape speeds up with a lot of green color on it then you would have a sure bet that the price is going to trend up!

 

[Jetheat]

Great suggestion.
This means people coming in to the market (volume) and also momentum building with recent trades, right?

 

[Scataphagos]

I would like to learn how to use volume as an indicator for fine tuning an entry.

When I was younger and inexperienced, I considered volume. Now I don't. (I know, I know... "volume is the Holy Grail".... except, it isn't.)

As a trader, your objective is to "be in tune with price". Nothing else. Not volume, not opinions, not whatsits.

Including volume as an "additional condition" in your trading decisions will only hinder your success.

 

[Money Trust]

When I was younger and inexperienced, I considered volume. Now I don't. (I know, I know... "volume is the Holy Grail".... except, it isn't.)

As a trader, your objective is to "be in tune with price". Nothing else. Not volume, not opinions, not whatsits.

Including volume as an "additional condition" in your trading decisions will only hinder your success.

I've read the works of authors who emphasize the use of volume and one thing I've noticed is that their analysis of volume is always hindsight. So, I'm in agreement with you...volume is no big deal.

 

[tiddlywinks]

What comes first, price or volume? Price obviously.
But when price is "wrong" (for lack of a better word), that will manifest in volume (or lack of).
Dog-doo moves on to and off the shelf when the price is right for the current conditions, volume tells.

 

[Turveyd]

Its not a lot of use.

Higher volume say after a down move with little movement means buyers and sellers are about equal, good odds it will reverse back up, but ofcourse sometimes the buy side runs out before the sell side.

 

[tommcginnis]

Again, the Volume haters come out of the woodwork......
They have never sold anything to a live person.

The financial markets are no different than the Farmers' Market up the street.
If everybody's tomatoes are going $5/qt, and a rickety half-ton limps in with the bed piled high with perfect Beefsteaks and Delicious and Roma and ......

What do you imagine is going to happen to the price of tomatoes?


Every single transaction EVER MADE is always of two parts -- price, and volume. Those who dismiss volume make assumptions about the market which are both readily falsifiable, and in practice, quite costly.

The OP knows what's up -- and wishes to have their intuition blessed. Well, your intuition needs no blessing, as the market will provide daily re-enforcement. You must decide, for your own markets, the best cuts for your trading candles. When you do, your volume measures will also be the tells you wish them to be.

If you want to combine the whole business, work up a TRIN, too. (IMO.)

 

[comagnum]

Volume is the wind in the sail that causes price trends to start and stop. It has more significance with stocks than with futures due to a stocks float. Volume proceeds price - this is an undisputed concept spanning many decades among informed traders. Volume leaves tell tale foot prints at zones offering the highest reward to risk.

Volume is the sum of the market participants - for any major trending price move up that may sustain from weeks, months, and years you need broad participation which is represented by the volume. On bottoms you need broad capitulation to wash out the weak hands before a major sustainable rally can launch.

 

[Handle123]

When I was younger and inexperienced, I considered volume. Now I don't. (I know, I know... "volume is the Holy Grail".... except, it isn't.)

As a trader, your objective is to "be in tune with price". Nothing else. Not volume, not opinions, not whatsits.

Including volume as an "additional condition" in your trading decisions will only hinder your success.

For the most part I have to agree, but I do have a few signals for day trading/short term swings where they based on volume, or more like absence of volume, so I am using it like an oscillator and divergences, and they get profitable percentages beyond 60%, how you manage the trade can get losses way under 40%.