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Importance of Volume

  #25 (permalink)

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

JonnyBoy View Post
After RTH today I hashed a video together with respect to how I use volume. I am not claiming to be an expert at it and I am certainly not claiming to be a master trader. However I believe volume is very important when reading the footprint of the market.

As a side note, when I talk about today's move back to the IBL (that was ultimately rejected) I should have also mentioned Midpoint and VWAP are also important levels to keep an eye on.

I have not covered every single detail here but enough to show what my interpretation of volume is.

Thanks mate, nice one. I will do that too with my use of the volume directly and indirectly. I don't think think this is about claiming to have "the correct" way to do things or to be a master, but volume is the very principle and mechanism of what makes a price and what makes it move. Everyone is free not to use it and to look at anything else they might find more useful and if it works for them, this is totally respectable, but given the stats when it comes to Retail Traders success, one can wonder why and may want to look at things from a different perspective. Even if someone decides to ignore the order book as they feel limits are a poker game (which in itself is another huge debate), volumes have always helped me trade tremendously, specifically when it comes to defining key levels. This is a healthy very interesting file, great to exchange what works well for us.

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