Is volume a good indicator of price action

[u0362565]

Hi all,

What indicators do you use to gauge price action?  I basically want to know which markets generally have bigger price swings.  This must be partly dependent on the popularity of the market and how many traders trading.  An overview that doesn't involve measuring the size of individual candles would be useful.

Thanks 

[dmedin]

Sometimes yes and sometimes no.

[dmedin]

[dmedin]

[u0362565]

I'm trying to decide what makes me pick a market to trade on.  I've been sticking to GBP/US dollar more out of habit than anything but there are markets with considerably lower margin requirement so if the price is moving sufficiently on those why wouldn't i trade those instead..

Thanks

[dmedin]

1 minute ago, u0362565 said:

I'm trying to decide what makes me pick a market to trade on.  I've been sticking to GBP/US dollar more out of habit than anything but there are markets with considerably lower margin requirement so if the price is moving sufficiently on those why wouldn't i trade those instead..

Thanks

 

Don't use volume as a criteria

[u0362565]

Well that's an answer at least  Its like if you want to compare the rate of price change between markets do i just have to measure between two for a set period of time.  In the longer term there will be differences.  Haven't looked for a while but the DAX had crazy price jumps over last few months.  40-50 points in an hour wouldn't be uncommon.

 

[dmedin]

Candlesticks are pretty good.  Have you read Nison's book?

[dmedin]

So tell me, does the huge volume on the down candle make it more likely that price will keep going down?

[dmedin]

Tamsin? 🤪

[u0362565]

3 hours ago, dmedin said:

Candlesticks are pretty good.  Have you read Nison's book?

No I haven't read any books, but I am a fan of heiken ashi candles. Maybe I might actually get somewhere if I actually read some actual books. The internet is 75% **** on this subject.

[dmedin]

I would post links to some ebooks but might get into trouble for it.

[Ludwik Chodzko-Zajko IG]

9 hours ago, dmedin said:

I would post links to some ebooks but might get into trouble for it.

Go ahead - we don't endorse anything external, but happy for you to link.

Just nothing paid for please.

[Caseynotes]

Anna Coulling's 'A Complete Guide to Volume Price Analysis'.

 

https://www.fx-arabia.com/vb/uploaded/3212_11399310873.pdf

 

[jlz]

You can also try to calculate market volatility. 

http://1.droppdf.com/files/gxQpD/volatility-trading-2013.pdf

 

[u0362565]

Thanks guys, these look like great resources!

[dmedin]

This is Nison's candlestick book and it's one of my favourites.

https://www.pdfdrive.com/japanese-candlestick-charting-techniques-e13778991.html

[dmedin]

Hearing more people talk about 'volume profile' and 'zones of control' and such these days.

[dmedin]

Observe how volume was higher on the down days.  Ah powers of hindsight, I never lost them!

[dmedin]

On 06/09/2020 at 19:12, dmedin said:

Hearing more people talk about 'volume profile' and 'zones of control' and such these days.

W*nkers, mainly.

[dmedin]

Volume clusters!

https://www.tradingview.com/chart/AUDUSD/2tdpXmYl-AUD-USD-reaction-on-Volume-clusters/

[TheGuru12]

I'd say more often than not, No.