| Re: Volume
"Volume is the major indicator of the professional trader.
You have to ask yourself why members of the self-regulated exchanges around the world like to keep true volume information away from you as far as possible. The reason is because they know how important it is in analyzing the market." Master the Markets p.16
*Volume is activity. Therefore, we can use tick volume en lieu of actual volume in those cases where it is not available.
*85% of the activity represented by volume is professional or smart money. How can a trader make good trading decisions if he is ignoring the actions of the smart money? After all, the smart money is deemed such as they tend to be right most of the time.
With an understanding of volume and supply/demand dynamics a trader can take his trading to a new level. Volume does hold the key to what is going on in the market. |