Volume Is Important!
Why is Volume Important?
When you look at a chart for a major market index such as the S&P500, you see only a history of the price paid for a basket of stocks. What you don't see is the total volume for the entire S&P 500 minute-by-minute or even day-by-day. What you don't see can hurt you.
- Volume offers a complete picture of the market.
- Volume can help determine the health of an existing trend.
- Specially volume for indexes and volume-based technical analysis are very good indicators to predict index shifts.
- Volume is the indication of supply and demand. It's defined as the number of units traded during a time period. This number is significant in that it supports the prevailing price trend.
- The technical analysis of volume is a basic yet very important element of market timing strategy. Volume provides clues as to the intensity of a given price movement.
- Minute-by-minute trading volume shows the reversal points of the market, and therefore when to buy and sell!
- Currently when a change in sentiment occurs on the market, most people don't find out until it is too late. This can be costly to an investor. Trading volume offers investors an invaluable tool to know when and where a change in sentiment is going to occur, and act accordingly.
- Intraday volume helps see where a stock is being repeatedly bought as it dips. Likewise, towards the end of a rally, a wide volume surge often signals that the move is at an end, at least short-term. If you weren't aware of it before, I hope you're starting to see why volume is a trader's best friend.
Now, for the first time anywhere, MarketVolume® offers a complete picture of the market. Not only do we supply you with up-to-the-minute index prices on a variety of major market indicators, we also show you the minute-by-minute trading volume. It is this volume that shows the reversal points of the market, and therefore when to buy and sell!
Currently when a change in sentiment occurs on the market, most people don’t find out until it is too late. This can be costly to an investor. MarketVolume® offers investors an invaluable tool to know when and where a change in sentiment is going to occur, and act accordingly.