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Importance of Volume

  #19 (permalink)

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

mangolassi View Post
This is overly simplistic and not necessarily true. Huge volume can be at a single price level and does not have to move price. What moves price is order imbalance at a particular instance of time, and overall volume has nothing to do with it.

Absolutely agree with you but this was just to explain that without volumes there is no moment. This is not overly simplistic but a fact.
Huge volume can be at a price level and not move price if and only if there is absorption, which, I am assuming, if what you mean by imbalance. What moves the price is the relationship between Limit order and Market orders, which is what you see on the order book.
This is what I look at and use when I trade, this is what is being taught by Jigsaw, NOBS, etc.

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