volume or not

Do you use volume information in your strategy?

1. yes, volume tells me something about liquidity, price discovery, and the state of the players involved
2. no, volume does not help in trading, it is a distraction and gives misleading signals

 

ssrrk:2. no, volume does not help in trading, it is a distraction and gives misleading signals.

Its my second and confirming indicator.

 

False dichotomy. What if you would trade volume if you could but you can't (e.g., FX)?

 

Yes, volume is very helpful. But like all things, it needs to be interpreted correctly.

 

FX brokers usually give a tick frequency instead of trade volume. But as far as we've tested it, it has little predictive value.