Who knows about Volume?

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?

 

example in this chart today.

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

 

Check out this thread and draw your own conclusions:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=134773

 

What you talking about their was news at 10am hence the reason for the spike

 

Volume is an indicator that falls under the heading of "too much information" and should be discarded. Thank you for your time.

 

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