Importance of Volume | Traders Hideout - futures trading strategies, market news, trading charts and platforms

Traders Hideout

Discuss day trading practices and futures trading strategies on this forum for all markets. This forum is also for discussing and reviews for brokers, data feeds, and commercial or third party add-ons


Importance of Volume

  #3 (permalink)

New York, New Jersey/USA
Trading Experience: Intermediate
Platform: NinjaTrader
Favorite Futures: Futures
Seahn's Avatar
Posts: 160 since Jan 2013
Thanks: 62 given, 265 received

phyoko View Post
Why the volume is important to trading and how can I use it correctly?

Volume is not necessarily important in trading. Some people use it others don't. It is definitely a very secondary data point, I would suggest other info is more important such as support/resistance, prior highs/lows etc. Price is the most important by far obviously.

I personally don't use it so I cannot tell you how to use it correctly other than to confirm a move as it sometimes precedes, price moves. But for me it is not reliable enough to bother with (I trade index futures).

Hopefully someone that uses volume can chime in...

Reply With Quote