Importance of Volume | Traders Hideout


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Importance of Volume

  #6 (permalink)

London, UK
 
Trading Experience: Master
Platform: sierra chart, Jigsaw Trading, Bookmap
Favorite Futures: 6E futures, Cable
 
Posts: 93 since Aug 2012


Seahn View Post
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...


And what creates support and resistances, prior lows/highs (to keep the same examples) if it is not volume? Volumes is just the amount of contracts exchanged between buyers and sellers, which is the only thing that makes the market move, which creates how/lows, resistance and supports, so even if you are not looking at the volume profile, you are still looking at volumes :-)


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