Volume is the shares, contracts, or bonds traded during a certain period of time. Without Volume you can’t get a clear read on where the supply and demand curves may be intersecting and where prices may be heading. Without volume there is no liquidity in the market, and makes for difficult and ineffective trading.
Volume assists in its ability to tell true technical breakouts, continuations, and reversals on the chart.
Corrections in up-trending stocks on lighter volume is an example of quality volume. You will know a move is genuine when a strong move in price accompanies strong volume and has light volume on pullbacks, breathers, or pauses.
Real Price is when you have major spikes in volume as It correlates with the direction of the buying and selling activity (the move in the stock).
Trading liquid products with strong volume is important for you to get quick and timely fills. Without volume in the markets traders would suffer severely. The markets would be extremely inefficient, and it would be impossible to make money trading.
Always trade in the direction of quality volume!
Discover the Top 10 Secrets Professional Traders Use to Get Consistent Results in the Stock Market!
FREE e-Report for Visiting Today($17.95 value)
Once you sign up, the free report will be instantly emailed to you!
Inside, you’ll discover:
* The #1 reason why most traders fail
* How to create a structured and well-balanced portfolio
* The tools and technology that professional traders use
* How to leverage capital and mitigate risk
* What to look out for before you enter into a trade
* How to get paid to buy stock you don’t own…and much more