Volume

[ckait 10]

It alway's suprises me when i read posts where traders dismiss the importance of volume in the intraday workings of the market. I have been on this forum since when there was fewer than 500 subscribers maybe even 200 I cant recall, its been a treat watching the site grow along side my own abalities. Recently thrust into the world of making my living off trading intraday, for those looking too start trading or looking too further their own growth as a trader, I cant stress enough how important it is to learn the places where volume comes into the market and its implication at the time. Im not a devote of VSA although it is a great place to start. Volume comes in at key times in the day usually tied to a pending reversal or at least a short time retreat of the latest activity. Low volume up moves can go all day without much resistance until a little volume shows up, or the rapid decent of a panic market whos end in marked by a high volume spike into the previous days high volume area. Not claiming to have all the answers by any means only to get the minds of new traders to find a way to get the ball rolling and realize that volume does have a place in you arsenal and should be incoperated in one way or another. Mery Xmass

[Hlm 10]

My quick feelings about volume...

 

It can be a very useful tool in that it allows you to locate and summarize the many different time frames that are in play. However, like any indicator one must understand and take into account the limitations and implement the needed risk management into their strategy. As for volume, a limitation is that it can't distinguish between one large time frame and multiple smaller ones turning together. Of course, depending on ones full strategy, this may not be a factor (just like with any other indicator).

[ckait 10]

I disagree with that a little it takes a larger time frames to move a market away from value, so if you have a move away on good volume the move should have more legs. I do agreee one should try and figure what timeframe is in control and when they loose it.

[Hlm 10]

I disagree with that a little it takes a larger time frames to move a market away from value, so if you have a move away on good volume the move should have more legs.

I must of missed something. I don't see how that conflicts with what I said. If you have a way to define "value" and a distance required to complete a move from it, then that's other information that uses volume to complete your strategy.

[ckait 10]

Agreed, maybe the way I personaly look at it i can tell (or think i can tell ) if its a larger time frame coming in thats all.

[BrunoHammerstorm 10]

Volume is critical to understand the background supply demand dynamic.