Is Volume Indicator Really Useful?

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  #1  
Old 19th March 2007, 11:47 AM
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Default Is Volume Indicator Really Useful?



My question to Technical Analysts :- Is Volume Indicator Really Useful?

When somebody is selling means somebody is buying, and vice versa.
Then what is the meaning of price increase with high volume?
Isn't it also means price is increasing when someone is selling with equally high volume?
Is Volume is Popularity (or feel safe factor) of stock and nothing more than that?

I also want to know about volume indicator in Eco. Times. like highest and
lowest delivery at NSE.
Does it really indicate something?

Thanking you all in advance

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  #2  
Old 19th March 2007, 12:49 PM
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Default Re: Is Volume Indicator Really Useful?

Quote:
Originally Posted by srijandrives View Post
My question to Technical Analysts :- Is Volume Indicator Really Useful?

When somebody is selling means somebody is buying, and vice versa.
Then what is the meaning of price increase with high volume?
Isn't it also means price is increasing when someone is selling with equally high volume?
Is Volume is Popularity (or feel safe factor) of stock and nothing more than that?

I also want to know about volume indicator in Eco. Times. like highest and
lowest delivery at NSE.
Does it really indicate something?

Thanking you all in advance
Yes! If the price is soul then the volume is body!

The fact that buyers have to up their bid shows sellers are not interested in selling ! So price starts to go up. Seeing this activity new buyers enter and the price is pushed further up.

ss

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  #3  
Old 19th March 2007, 08:17 PM
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Default Re: Is Volume Indicator Really Useful?

Thanks SS for the reply.
I could feel your confidence in volume indicator.
Later on came across your posts on OBV and traderji's on volume.
Regards

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  #4  
Old 22nd March 2007, 09:26 PM
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Arrow Re: Is Volume Indicator Really Useful?

I believe we have to think about a volume indicator as picturisation of the mass psychology.

If you guys are aware of famous patterns like H&S, Flag Pattern, etc it is clearly visible that any pattern when supported by relevant volumes gives superior results than the one without supportive volumes.

Check out most of the index scrip charts at their all time lows. In most of them, you will see wide Head and Shoulders forming with rising volume.

One of the only reasons why volume is considered crucial is that volume present impartial opportunity for judging the "Operator's cost"

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  #5  
Old 23rd March 2007, 02:39 AM
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Default Re: Is Volume Indicator Really Useful?

Quote:
Originally Posted by makarand.mone View Post
I believe we have to think about a volume indicator as picturisation of the mass psychology.

If you guys are aware of famous patterns like H&S, Flag Pattern, etc it is clearly visible that any pattern when supported by relevant volumes gives superior results than the one without supportive volumes.

Check out most of the index scrip charts at their all time lows. In most of them, you will see wide Head and Shoulders forming with rising volume.

One of the only reasons why volume is considered crucial is that volume present impartial opportunity for judging the "Operator's cost"
Please give us some examples ie charts.

ss

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  #6  
Old 23rd March 2007, 01:07 PM
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Default Re: Is Volume Indicator Really Useful?

Quote:
Originally Posted by sunil saranjame View Post
Please give us some examples ie charts.

ss
Hi Sunil

I am starting a new thread on this subject as as "Volume Breakout" please check the same

Regards
Max

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