In fact price movement sometime move very dynamic and unpredictable, might we already trying to analyze based on price action and pattern market, but not always will work well all the time, in my view this is also about possibility
If you are trading a market like ES in first hour or two where volume is heaviest and you still say price is unpredictable than you haven't put in enough work to the study of price. Hands down. There's nothing else to it.
Read Volman's first book. A valuable piece of PA info. I traded a few emails with him ... a nice guy as well. NoDoji once said she wished she had read Volman first and I agree 100% with that sentiment.
Seems so good book about naked chart analysis, where to get it? In trading without indicator I am learn only about demand and supply theory, but not yet having good understanding
Just to play the devil's advocate here, if you really could simplify the relation between volume and volatility the way you describe, could it not be arbitraged away? The relationship between volume and price fluctuation/volatility is poorly understood, and is in fact actively debated in trading as well as academic circles AFAIK. There are a few systematic studies in this area but even they are inconclusive or speculative at best, or have been contradicted by more recent studies. 'Stock Prices and Volume' research paper by Gallant, Rossi et al. is a good starting point for those interested in this topic. Old but still gold.
This (legitimate, not pirate) website contains more information, and a link to download free excerpts of the book in PDF format: https://upabook.wordpress.com/
There is a clear correlation between Volatility and Volume. That's why as an intraday trader I tend to trade event-driven. Because I know that usually if there is volume, there is volatility. That means I want play the open or events accompanied with volume. However I have not found yet that volume helps to forecast prices. And I know that volume is not the only variable for volatility. It's only half the equation, the other half being: Liquidity. But don't mistake Volatility plays for Directional ones. If you break down volume into orderflow, Some claim persistence of its sign over a short period of time. Intraday I've also observed a relation between Volume and Phases. But it's less empirical and more of an art currently, at this stage. High vol being the relay from buyers to sellers & vice versa. I believe there are waves of buying as well as selling. Volume could shows the transition between them.
THankyou for linked source, very useful for learning about naked chart analysis, although only get free eexcerpts but giving more insight, but required time to reading all article
Amazon like almost every other book in the world. Punch in Volman. I think his first name is Bob or Robert but not 100% sure.