What is your favourite indicator?


jack

Administrator
Staff member
Think about it like this:

Real volume (not tick volume) shows where people are actively dealing and matching trades, thus, increased volume at given prices levels will you a hint where more interested parties are willing to deal / trade. Price discovery happens when price moves away from one area of trading interest until it finds another where people are interested in trading. Thus, we will observe that most moves start and end on increased volume:

 

jack

Administrator
Staff member
You can google VWAP or search it on investopedia to understand why it's important. :D
 

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