I am starting to accumulate charts based on volume breakouts and combining that with the Woodies' CCI patterns. This will be am attempt to combine two different methodologies that are well followed to help the trader visually comprehend what the smart money is doing. I will post those I feel relevent and any that are requested from blog members.
With program trading that takes considerable percentage of all trades these days, I would not put much emphasis on volume. When big monsters fight each other utilizing fastest computers and sophisticated algorithms, and where trades last seconds or milliseconds, volume can hardly reflect real supply/demand imbalance.
This statement is by no means a result of any research, I'm just thinking aloud.
i personally don't use volume indicators, I do however pay attention to high volume nodes where price discovery could have been reached (at least in the short term) , and look for breakouts and breakdowns from those levels. I agree the HTF - high frequency trading makes volume irrelevant. its just machines trading with machines scalping a few ticks. just remember this --Volume does not equal liquidity... good traders can spot a breakout just based on how fast bids/offers are filling in, and watching time and sales. I look forward to the results of your work