What is the best way to judge the current market volume?

Discussion in 'Trading' started by FarkCop, Apr 9, 2009.

  1. FarkCop


    As everyone knows that market volume is quite important to trading strategy. For example, you probably don¡¦t want to do momentum trading during low volume day.

    I was currently using SPY and futures squawk to determine the volume condition. But squawk can¡¦t provide a precise view, because I was judging through the back ground noise of the pit. And I feel SPY volume is kind of tricky recently. I think more and more people are trading it, which can¡¦t give you an accurate view about the true market volume. The SPY volume may increase, but the market volume decrease.

    Is there a better way that you can find out the market volume during trading hours live?
  2. 1) The "tick count" can serve as a proxy for volume.
    2) Faster "ticking" is correlated to higher volume.
    3) Don't get too hung up on volume over price. :cool: