The sell off in march 9 lows didn't have the volume to indicate bottom. The ride up to this resistance level had no volume either. volume matters cause it indicates buyers in the bottom and buyers buying it up going up. any new long or short position should not be taken. go on vacation as many have done. march 9 2009 lows will be retested and need huge volume to indicate a bottom. if march 9 2009 do not hold and these are not investors but leverage speculators we'll heading even lowering indicating really bad fundamentals inthe real economy. this could be bankrupty of states or swine flue epidemic or war breaksout in Iraq or some bad stuff like North korea or pakistan sold nuclear weapons to terrorist and blew up a US city. that is really bad stuff. or US defaults on loans or US currency massive davaluation. Citibank filing for bankruptcy etc. old shares of citigroup are worthless and gov't owns all new shares and bonds.
The above statement is totally absurd. If you are a trader you couldn't care less about VOLUME. If you did, you would have missed a ton of moves this year for HUGE gains. Trading off of volume is a total "rookie" mistake. And given your logic, a trader would have never gotten long in March or April because ( according to you ) the volume wasn't big enough to create a major low, yet here we are > +300 SPX points! Traders get paid based on PRICE. Not volume. Period.
why omit volume. indicators are derived from price action. volume is the easiest indicator professional traders at Goldman Sachs use automated trading sytems using computers okay. no human traders. there are amateur traders who have full time day jobs and make more money than you okay in returns on capital and they only use price and volume.
Big deal. What has this got to do with volume? Or are you trying to say that you've been on an equity derivatives trading desk and have a firm understanding of program trading based on agency or principle trading as well as stock-index arbitrage, let alone having the classification of being a Sole Liquidity Provider like Goldman? Somehow, I doubt it.
Volume may be the "easiest" indicator, but that does not make it a SIGNIFICANT indicator by any means.
if you are trading only 100 shares and making pennies scalping daytrading volume doesn't matter than. right. unless volume is bullshit volume that volume is misleading or fake volume. wash trading price is an indicator.