Article How Does Volume Figure Into Our Trading?

T2W Bot

Staff member
1,459 60
A view of the forest (from the top of the tallest tree)
There was a time when volume data wasn’t available until a day or days after a trade. But in today’s electronic age, live volume is at our fingertips. The beauty of volume as an indicator in live trading is the fact that it is the ONLY leading indicator among the hundreds of possibles. Everything else derives value from what price is doing, lagging the price action. That means changes in volume can impact what price will do before it happens.
Volume plays such an important role in our trading, we mustn’t neglect the messages it sends. For example, one key to this important strategy is the function of volume spikes. It is these spikes that suggest possible market turns. The chart below is a shot of the SP-500 index, clearly demonstrating how volume spikes foretell changes in the very recent trends. This is a weekly chart providing a larger picture of the action.
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claire4075

Newbie
2 0
indicators

The way you write and explain is easy to understand! if something new has to be re-read to 'get it'. , it is not written well. This author knows what he is doing and how to teach it. Thanks. I watch this site for your articles and hope to see more soon.
 

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