i dont understand volume
- Thread starter mute9003
- Start date
Well.. I'm little surprised with the comments here..
I believe volume activity in key price levels is the name of the game.
Don't you believe that nice uptrend in volume after nice breakout plus stady volume increase may implay that this price may be be good support level and it's good place to speculate for the long side?
For example..
I believe volume activity in key price levels is the name of the game.
Don't you believe that nice uptrend in volume after nice breakout plus stady volume increase may implay that this price may be be good support level and it's good place to speculate for the long side?
For example..
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Good points;
+ strangely most of them are, as of my post.
ONE of the main reasons i like volume= i always use it/LOL
.AS far as volume, uptrends\ downtrends ,can move any way/ off any volume.
Bid/ask can moVe off no volume, but i use volume as a confirmation.
MANY times, but not every time / its like the REALTY appraiser said, ''ask price tells you what it is NOT worth ''LOL
I paid up past ask price limit order on additional TQQQ today, volume was nota key indicator but i glanced @ it....................................................................................................
I like to see good volume at start of new trend and near end of trend, along with chart patterns to find ends or strong areas for deeper pullbacks to occur. I take note of closes at ends as I want to see "bunching" and on chart it looks like consolidation or small breaks which is another clustering of highs/lows. And I like to make it simple, easier to program.
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IT'S NOT hard to figure out.
Price can easy go nowhere on a volume spike; or gap up or down huge on one ETF share.
REALTY sales [comps] do the same exact thing.
But one sale up gap or downgap could also be misleading if you live in that neighborhood\LOL
I saw GE go nowhere on a huge day volume spike once....................................................Volume is a secondary measure; never make it first.
In other words, its a wrong assumption; that a volume spike has to be a major price move= that is wrong..............................................................................................
I have seen many traders make use of the market volume to increase their win rate by adding depth to their trading. If someone doesn’t see it to be an indicator that is enough to make trading decisions, you can use it along with price action to make your moves.
I agree that volume on a bottom of a chart doesn't do much. On the other hand, not using volume when intra day trading is like trading blind.
This is why I only trade centralized and regulated exchanges.
Volume can be used to feel the momentum and avoid the "place a trade and hope for the best outcome", which is basically buy and hold.
Feeling the momentum is one of the explanation of why few scalpers or intra day traders have a very high win rate.
There are so many other use of volume than just adding volume bars on a bottom of a chart.
Hope you will find your way.
Best!
This is why I only trade centralized and regulated exchanges.
Volume can be used to feel the momentum and avoid the "place a trade and hope for the best outcome", which is basically buy and hold.
Feeling the momentum is one of the explanation of why few scalpers or intra day traders have a very high win rate.
There are so many other use of volume than just adding volume bars on a bottom of a chart.
Hope you will find your way.
Best!