the volume, mostly, is the fuel for the movement, especially in short term, when volume comes with news. and that's before talking on float rotation for example.
I think volume is the only essential indicator. I won't make any plays unless relative volume is at least 2. I don't want to be trading against the HFC's. I then use volume for specific plays or Setups. Breakouts, reversals etc
%% Cant trade with out volume; but I read my charts top to bottom, so volume is required but never first...………………...
Only time I use volume is lack of volume. See much volume come into a stock on a rise up, then it stalls as waiting for last dentists go long as market goes little higher, time to hedge and or go short.
I've long said "Traders vote with volume ". I adjust my trading size based on relative volume, my goal is to trade larger size whenever volume confirms a price action entry signal.
I'm positive I can find an example of this if I trade tomorrow. The idea in my head is simple. If something is chugging along on 1 mil shares per day for 4 weeks, then today it has RV 2 (2mil) its potentially in play. Higher relative volume potentially means more retail investors to compete with. If a stock doesn't have high relative volume, and its breaking out or showing a great entry, what the point in playing it if I am the only one. When we trade, we trade against each other. I can't beat the computer.
Thanks for that discription. If you decide to post chart, It can be Old historic chart(s) typical of your point. They don't need to be fresh. Your example(s) would enable us to look for comparable situations. [O'Brien says if price moves to a next level and there's no customers (volume) then price will go the other way. "If they can't knock the top out of it, they'll try to knock the bottom out of it." Bigalow on the other hand says volume is useless.]