Volume and technical analysis

#1
Hello, As everyone knows technical analysis consists of mathematics which is the reflection of mass psychology.So for technical analysis to be applicable the chart of the security to which it is being applied must have a sufficient trading volume.The greater the volume-- the stronger the signals.I have often wondered if there is a cut off volume below which technical analysis cannot be applied.If that figure is known it would be easy to exclude those securities on the exchange which are sparsely traded. John Bollinger of Bollinger Band fame in his book "On Bollinger Bands" says for that for technical analysis to be applied effectively the bars of the chart in question need to be fully formed with open, high, low and close being sharply demarcated.Elliott Wave International says no matter what the volume -- if Elliott Waves can be recognised then trading via the wave principle is possible. I would like to know what formula to put in the explorer (Metastock) to eliminate sparsely traded stocks I tried mov( v,10,s)>2500 but the results were not that satisfactory. Can anybody help? Regards, Dr.Chatterjee
 

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