Help me understand volume/price relationship

Discussion in 'Technical Analysis' started by mute9003, Jan 19, 2022.

  1. Justrade

    Justrade

    A Complete Guide to Volume Price Analysis - Anna Coulling

     
    #11     Jan 19, 2022
  2. SunTrader

    SunTrader

    You talk of DPW then post NILE?

    Anyway pure volume by itself can only be compared to volume in the past which although helps somewhat, what really is key is up volume (trades done on uptick) vs down volume (trades done on downtick).
     
    #12     Jan 19, 2022
  3. mute9003

    mute9003

    Nile is dpw lol
     
    #13     Jan 19, 2022
  4. wartrace

    wartrace

    It's called absorption. Passive sellers are soaking up aggressive buyers orders.
     
    #14     Jan 19, 2022
    Leob and zghorner like this.
  5. You have hit the nail on the head.

    Volume does NOT correlate well with price. When you rely upon volume or include it in your decision to trade/not, you will impair your results.

    My advice... forget about volume altogether for trading decisions. Trade from the price chart. Everything you need to know... everything worth knowing is in the chart.
     
    #15     Jan 20, 2022
    PennySnatch likes this.
  6. SunTrader

    SunTrader

    What are you smoking? NILE is BitNile Holdings, Inc.
     
    #16     Jan 20, 2022
  7. maxinger

    maxinger

    If you are trading manipulated (or seems like manipulated) stocks,
    you must look at the volume very closely.
    Use that to decide when to enter and exit the trade.
     
    #17     Jan 20, 2022
  8. easymon1

    easymon1

    Anybody have a way to use Volume to trade this move that started at 8:30?
    doejh.png
    oycng.png
     
    Last edited: Jan 20, 2022
    #18     Jan 20, 2022
  9. Sprout

    Sprout


    To understand volume you need to do drills and group like to like. Your chart is insufficient. It shows trading in extended hours which have a different volume profile than RTH. The market is much thinner then and the P/V relationship isn't as clear without including other timeframes.

    The ten prices cases are a good place to start.
     
    #19     Jan 20, 2022
    S-Trader and Leob like this.
  10. easymon1

    easymon1

    What time frames would you say work best for using Volume to trade?
    Worst?
     
    #20     Jan 20, 2022