How To Trade with Volume

In How To Trade with Volume, Galen Wood tries to present volume trading in an accessible manner. He has included basic concepts from Volume Spread Analysis (VSA), and volume indicators that are more intuitive.

Author’s Note:

In the technical analysis of financial markets, there are three important dimensions: price, volume, and time. Time-based price charts, like the 5-minute bar chart, are common. As a result, most analysis takes into account price and time, but volume is left out. Moreover, for the uninitiated, volume signals adds complication without value. For these reasons, volume is often neglected, despite its potential value to price analysis.

Most of the volume trading methods revolve around extremes. Looking at volume is not always easy or useful. However, when volume is exceptionally low or high, it usually pays to take a closer look. High volume represents that big players are participating. The key is to find out what they are up to. Are they covering their short positions? Or are they selling rapidly to push the market further down?

Low volume is a sign that the market is reluctant to participate. Why? Are they missing something big that is brewing at the moment? Or are they waiting for a critical break? To read volume effectively, ground your perspective with extremes. A final note of caution. As volume analysis seems elusive, it offers an opportunity for some vendors to claim that it is the Holy Grail. Volume-based trading systems and indicators are often sold as black boxes. Beware! Volume is nothing more than just another trading tool.

Contents:

• Anchor Zones Trading Strategy
• Reliable Support and Resistance Zones with High Volume Signals
• The Low Volume Hint to Explosive Moves
• Capture High Profits with Low Volume Pullback Trading Strategy
• Low Volume Pullback Strategy (Expanded)
• Your First Guide to Volume Spread Analysis (VSA)
• What is Stopping Volume in Volume Spread Analysis (VSA)?
• Ease of Movement Trading Strategy
• On-Balance Volume Trading Strategy For Fading Dumb Money
• Volume-Weighted Moving Average (VWMA) – A Simple Volume Tool

How To Trade with Volume by Galen Woods pdf