Volume is very very light today 08-22-07

[stock_trad3r]

Quote from myminitrading:

This is the lightest volume day in quite some time. Volume this week is very light in comparison to last week.

A heavy volume sell off followed by a light volume retracement is not very bullish.

Volume doesn't matter most the time regarding indexes. 1.7 billion versus 2 billion volume isn't a big deal.

The problem with a lot of shorts is they interpret every minor discrepancy as a bearish signal when it isn't. This is why they tend to lose money.

 

[Lucrum]

Quote from myminitrading:

This is the lightest volume day in quite some time. Volume this week is very light in comparison to last week.

A heavy volume sell off followed by a light volume retracement is not very bullish.

I keep a running average of daily volume over the last quarter.
NQ, ES and YM volume today was between 77%-79% of the current average. Normally that is low enough to make it note worthy. However with the recent increase in volatility there was also a big increase in volume. Volatility and volume both seem to be slowly contracting. Meaning at least some of the "low" volume is simply reversion to the mean. Todays futures volumes were typical of the volumes before the recent volatility, and therefore aren't necessarily all that low.

As someone who found little if any consistent use of volume for years I see why some ignore it. Prices moves with both contracting and below average volume do tend to be susceptible to significant retraces though. Of course it helps to know what "high" "normal" and "low" is. Personally I don't view the low volume by itself as a signal to fade a move but merely a warning that it may be running out of steam. Unfortunately the warning doesn't tell you whether the price move ends in two price bars or a dozen.

 

[tick bandit]

Quote from stock_trad3r:

Volume doesn't matter most the time regarding indexes. 1.7 billion versus 2 billion volume isn't a big deal.

You are a piece of work brother........