Who knows about Volume?

Discussion in 'Trading' started by antincedo, Nov 25, 2008.

  1. my question is how does one know the difference when a spike in volume means there's momentum to come or that either side has 'blown' the momentum... and perhaps a reversal is to come?
     
  2. example in this chart today.

    did the spike in volume give indication of the failed W pattern?
     
  3. Mins

    Mins

    What you talking about their was news at 10am hence the reason for the spike :confused:
     
  4. Volume is an indicator that falls under the heading of "too much information" and should be discarded. Thank you for your time.:)
     
  5. Since we each have opinions . . . I'll adjust B1S2's to match mine.

    Volume as a stand alone indicator is an indicator that falls under the heading of "too much information" and should be discarded.

    Volume that is embedded into a chart, as in a Constant Volume Bar chart, is an indicator that falls under the heading of "perfect information" and should not be discarded.

    Here is a thread that has a couple charts I posted that clarifies my opinion.

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=146012&perpage=5&pagenumber=3