![]() ![]() What constitutes volume? Quite simply, volume is the total number of contracts (or shares) traded during a single trading session or over a given period of time. With a proper understanding of volume, however, the Elliott Wave Theory takes on new life, and one's analysis of the market becomes much more accurate. Volume is to price what gasoline is to a car, and you cannot have one without the other. ![]() For without taking into account volume into one's market analysis, the analyst comes away with only half the picture. This is a mistake, and one that has been largely responsible for the perceived "failure" of the Elliott Wave Theory. Indeed, even Elliott himself made scant reference to volume in his writings. In recent years, market technicians-including Elliott Wave analysts-have largely ignored this crucial market gauge in their examination of the market, instead preferring to focus solely on price. We come now to one of the most overlooked measures in technical analysis-trading volume.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |