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Importance of Volume

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Munich, Germany
 
Trading Experience: None
Platform: Sierra Chart
Broker/Data: Interactive Brokers
Favorite Futures: liquid products
 
Schnook's Avatar
 
Posts: 320 since Jul 2016
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A lot of traders focus only on price. But remember this - in order for a price to actually hit the tape, there must be volume.

Without volume, there is nothing.

Sounds kind of dumb to oversimplify things like that but it's true. Price is irrelevant if no one is willing to actually buy or sell there. And an astute observer can glean a lot of valuable information by watching volumes.

Try this for a simple experiment: look at your favorite instrument on a simple intraday chart, identify where the best reversals occurred, and then look at the volumes underneath those reversal bars. Notice anything

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