trend continuation and volume chart

Discussion in 'Technical Analysis' started by flyingforget, May 8, 2008.

  1. in the time chart people tends to enter when trend rests

    and exit before the trend reversals

    could I find similar pattern in the volume chart?

    I could not find the support/resistance zone in the volume chart

    how to grasp the trend in the volume chart

    thank you much
  2. 1) Trend followers should enter/exit the market at "obvious" breakout levels, not when the market is at rest.
    2) Price breakouts happen first and are then followed by increased volume to "confirm" the breakout.
  3. I trade the index future

    is the volume so important?
  4. speres


    Knowing volume gives clues to where the market might go, for example, a price rising towards resistance on reducing volume would indicate a lack of interest from the people that matter.
  5. If you trade volume it's vital. To those who don't use volume and instead have something else that works, volume is unimportant.

    So there are two camps: one who use it to profit and one that doesn't. By asking this question I take it you don't have a lot of trading experience or you don't have a very broad trading education.

    There are many approaches to using volume and many schools of thought. Some can be learned a few weeks and some like Wyckoff take years to master.

    My approach to trading is to research anything that I can see has good potential to make a profit, that sets out it's techniques in a clear, unabiguous manner and either works with what I do or is so strong makes me it worthwhile to change my style of trading.

    Knowing nothing about your style of trading I can't make any recommendations other than my guess is it should be part of your continuing prefessional education.
  6. Fabrivero


    volume is important but IMO divergences are more important.

    In the following chart there's a volume indicator and you can see the 2 divergences.

    p.s sorry for my bad english:D
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  7. 1) Price fluctuations affect your account, not volume.
    2) Volume is good when it confirms what you want your position to do.