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  1. #1
    Legendry Member Michael Hodges's Avatar

    Volume, The Negliected Indicator !!!

    Volume is the most often forgotten indicator. While we are focusing on rsi, momentum and moving averages the market volume ebbs and flows, and in the end can mean the difference between good signal and bad. Not all assets track volume, and not all that do do it in the same way, but regardless, you need to know all about it.

    Volume, The Neglected Indicator

  2. Thanks Dan21, victrader thanked this post
  3. #2
    Active Member victrader's Avatar
    Absolutely, Michael. I know your post is a few months old, but totally relevant. I have been looking at the MFI today and am blown away by how it analyses volume based on accumulation/distribution. Not trying to use big words - only learned them today But did some backtesting with excellent results. Also reading A Complete Guide to price and Volume by Anna Coulling. Most of it above my head, but some of it making sense.

  4. #3
    Rookie Member dante66's Avatar
    I also read that book. Seems good but I think i need to go over it again. Volume is under-rated in trading I do agree.

  5. #4
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by victrader View Post
    Absolutely, Michael. I know your post is a few months old, but totally relevant. I have been looking at the MFI today and am blown away by how it analyses volume based on accumulation/distribution. Not trying to use big words - only learned them today But did some backtesting with excellent results. Also reading A Complete Guide to price and Volume by Anna Coulling. Most of it above my head, but some of it making sense.
    volume is TOO important not to pay attention to. It is what drives the market, if there is no volume moves are wishy-washy, subject to random and unexplained moves and the signals are absolutely worthless. The market has to be engaged in price action for the signals to mean anything and the more volume there is the more engaged the market is and the better the signals. I can say, without doubt and whole heartedly, that I lose money on low volume days, low volatility, low engagement days and make a killing on high volume, high volatility high engagement days. My personal struggle is only trading on the good days and stop trying to make things work on the days that are only so-so.

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