Decisionmaking process behind volume

Risk driven:
Participants, with old positions, can protect or liquidate these positions for protection against adverse moves.

Opportunity driven:
Participants might consider opening new positions in the direction of an anticipated move.


Is this (in)compleet?

 

any takers

 

There may be positions that are not particularly watched very closely and are traded for no particular reason relating to the market's recent activity. That volume would be a noise component for daytrading purposes.

 

Price fluctuation is more important than volume fluctuation. Focus on that instead.