The myth of volume as a leading indicator of price direction...

[SunTrader]

In those charts above volume at low is likely more short covering than new longs and at the top longs exiting. Use all the tools all the time - Gann.

Price, time, volume & pattern.

 

[Scataphagos]

People always says volume proceeds price. If a green bar closes with strong volume it means it is likely to go higher and a red bar with strong volume means vice versa.

I don't agree with that. Volume just means more buying and selling but it doesn't give any indication of direction.

Gold Star for you!

Including volume in trading is not only useless, it's actually harmful to results.

 

[murray t turtle]

It can show support resistance levels to help setting up trades, however, this works best on higher time frames such as daily and weekly and it lacks reliability due to dark pools and interbank markets which makes it only appealing to use upon some exotic commodities.

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That;
+ monthly candle charts.NEVER a leading indicator\ even though one maybe could get some liquidity hints................................................................................

 

[schizo]

People always says volume proceeds price. If a green bar closes with strong volume it means it is likely to go higher and a red bar with strong volume means vice versa.

I don't agree with that. Volume just means more buying and selling but it doesn't give any indication of direction.

As you can see here after a long downtrend, there are huge volume days and prices look to breakout yet after that price just slowly declines.

Another example on an uptrend very large green volume bar on a buying climax and then prices drop down sharply.

Discuss.

These are volume spikes that occur at the climax. It's similar to sexual orgasm. Once it happens, it's all down hill from thereafter.

 

[murray t turtle]

These are volume spikes that occur at the climax. It's similar to sexual orgasm. Once it happens, it's all down hill from thereafter.

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Sounds more like a general rule than an iron rule;
i mean on trading , not sexual orgasm.
Shaunti FeldHAhm used to be a Wall Street Analyst , wrote a book named '' Thriving In Love + Money''
I remember she told Focus on Family/ men like sex in morning, more testosterone then. Some market patterns are better early also.
Changing the subject slightly but not much. JAN Jone's sister asked ''why not throw away your old worn red pants??'' Jan Jones told her sis ''i dont want to throw away my old red pants\they are my period pants\LOL'' Good logic with Jan Jones period pants,

 

[zghorner]

Big volume days with price increase can indicate smart money taking positions in a company. Whether you see that as bullish or not is your business.

 

[IronFist]

Volume tends to be huge at reversal points.

 

[IronFist]

if Binance is only showing their own volume, wouldn't it be similar to other exchanges, though? Price starts soaring, people on Binance and elsewhere start buying (or selling).

 

[tiddlywinks]

if Binance is only showing their own volume, wouldn't it be similar to other exchanges, though? Price starts soaring, people on Binance and elsewhere start buying (or selling).

AFAIK...
It doesn't work that way with the forex firms that show a volume.
It doesn't work that way with equities showing BATS (or similar) volume.
It doesn't work that way with CFD if a volume is available.

Is there a reason crypto volume should be different in this regard?

 

[SunTrader]

IMO there is no difference.

There. Two opinions make a market.