Futility of utilizing Dow E-Mini volume ?

A

aspenboy

Read on a blog where claim was made volume data is not current and or accurate due to exchanges policies. Said some data vendors tried to approximate volume,etc... Any feedback on this ?
Furthermore,I have not found volume to be that consistently helpful in ascertaining demand/supply dynamics as pertains to resultant move. Seen many nice moves on relatively light vol.,often climaxing in volume peak it appears. I realize the Dow contract is much thinner,etc.
Appreciate all suggestions,insights,etc... Leaning more and more just to price action(candles),S/R,fibs,mkt. internals,etc......no indicators at all.
 
A climb up on low volume, normally means that there's not too many aggressive sellers about. This normally isn't the type of rally you want to go long in, because want you want to see are very aggressive buyers, not just scared sellers.

Often times you will get a capitulation candle at the tops of rallies or bottom of sell offs. This is a candle which receives a massive volume spike at the top of a rally or the bottom of a sell off. Many times you will get a pull back/ retracement from here, because everyone who wanted to buy has done so or vice versa.
 
Quote from aspenboy:

Read on a blog where claim was made volume data is not current and or accurate due to exchanges policies. Said some data vendors tried to approximate volume,etc... Any feedback on this ?
Furthermore,I have not found volume to be that consistently helpful in ascertaining demand/supply dynamics as pertains to resultant move. Seen many nice moves on relatively light vol.,often climaxing in volume peak it appears. I realize the Dow contract is much thinner,etc.
Appreciate all suggestions,insights,etc... Leaning more and more just to price action(candles),S/R,fibs,mkt. internals,etc......no indicators at all.
More...

If you are talking about end of day volume then yes there are wild discrepancies between vendors and often it is a day behind.

From what you say it is clear you don't know how to read volume so you take it down to the most basic assumptions and draw wrong conclusions. That's fair enough because most on ET will do the exact same and I used to think the same.

Low volume in an area of over supply results in falling prices or congestion and then falling PA.

You need to understand supply and demand areas. If there is a lack of supply price will rocket and even gap up on low volume.

Recognizing PA going into low supply is just the kind of juicy move you want to watch out for while those who don't understand the dynamics of trading volume will say, "low volume - keep out!"

It won't matter anyway because they will have missed the early move and have to pay a premium to get in.

Intraday volume is usually okay. Learn your PA before trying to read volume.
 
Good suggestions...I appreciate that. Yes,I am definetly a newbie at reading/intrepreting volume. Hence, hopefully just getting started on a fulfilling educational process.
Thx. for the feedback and certainly welcome more. All the best...
 
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