Help me understand volume/price relationship

mute9003 said:
It is very confusing
Sometimes volume goes up price goes up
but sometimes it goes down or stays the same
Sometimes colume goes down price goes up or it doesnt
Maybe it goes up maybe down i donno


this makes no sense to me how those two supposed to work
Like this picture of dpw just now.
increased buying volume? Price goes down

I dont get it
Then other times i see no change in volume and price is allover the place
More...
You talk of DPW then post NILE?

Anyway pure volume by itself can only be compared to volume in the past which although helps somewhat, what really is key is up volume (trades done on uptick) vs down volume (trades done on downtick).
 
SunTrader said:
You talk of DPW then post NILE?

Anyway pure volume by itself can only be compared to volume in the past which although helps somewhat, what really is key is up volume (trades done on uptick) vs down volume (trades done on downtick).
More...
Nile is dpw lol
 
mute9003 said:
It is very confusing
Sometimes volume goes up price goes up
but sometimes it goes down or stays the same
Sometimes colume goes down price goes up or it doesnt
Maybe it goes up maybe down i donno


this makes no sense to me how those two supposed to work
Like this picture of dpw just now.
increased buying volume? Price goes down

I dont get it
Then other times i see no change in volume and price is allover the place
More...

You have hit the nail on the head.

Volume does NOT correlate well with price. When you rely upon volume or include it in your decision to trade/not, you will impair your results.

My advice... forget about volume altogether for trading decisions. Trade from the price chart. Everything you need to know... everything worth knowing is in the chart.
 
If you are trading manipulated (or seems like manipulated) stocks,
you must look at the volume very closely.
Use that to decide when to enter and exit the trade.
 
Anybody have a way to use Volume to trade this move that started at 8:30?
doejh.png

oycng.png
 
Last edited:
mute9003 said:
It is very confusing
Sometimes volume goes up price goes up
but sometimes it goes down or stays the same
Sometimes colume goes down price goes up or it doesnt
Maybe it goes up maybe down i donno


this makes no sense to me how those two supposed to work
Like this picture of dpw just now.
increased buying volume? Price goes down

I dont get it
Then other times i see no change in volume and price is allover the place
More...


To understand volume you need to do drills and group like to like. Your chart is insufficient. It shows trading in extended hours which have a different volume profile than RTH. The market is much thinner then and the P/V relationship isn't as clear without including other timeframes.

The ten prices cases are a good place to start.
 
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