I consider volume more of a distraction. Price rules. Watch the setups and "SEE" where the price is likely to go, place your limit early as possible so you will be sitting in a good seat in the arena to get filled. What you "SEE" ahead in the price action will be reflected in the volume so no need to worry about vol at all. When you get filled and after you placed the STOP LOSS, get the finger loose so you can change the STOP loss to a breakeven, small profit trade. Vol as indicator is like a wallflower at a dance, let it sit there and look for something faster with more rewards as the evening progresses. Price not volume. Do not complicate things, when you go to a dance you are there to dance, so dance. ............
..yeah but guess what...when your legs get tired you have to leave the dance floor(unless your take some highly dodgy chemicals).....volume equals muscle strength
There's an entire forum devoted to price and volume at t2w: http://www.trade2win.com/boards/forumdisplay.php?f=158 Pay particular attention to DbPhoenix's stuff.
Thanks for your comments, Batterup. I'm aware that opinions diverge on the volume/price question, and I need to hear both sides. Volume may turn out to be a wallflower, but if I don't look into it I'll always have the nagging sense that I might have missed something.
One of the many lessons I have learned about volume is that when it is high everybody is on equal footing. When it is low, the big players run the show.
================ Also while above average volume sell side , is another good sign for polar bears; its also helpul to ''bear '' in mind , like simply average or real close to average volume as they accumulate in an uptrend. Thats a good sign also In other words great care to keep the volume average in a strong stock, strong sector =nicely bullish
You're saying that those who are accumulating a stock in a strong sector will try hard to keep volume average so as not to attract attention. But as volume stays at this more or less "unremarkable" level, how do I find out that accumulation is underway? They are accumulating as the stock slowly risies? How do I see that? Thanks, Murray.