I was recently teaching a Technical Analysis Strategies online course and the topic of volume came up in the class. The students seemed surprised to learn that I do not look at volume on my charts while trading. When asked why, I replied that volume is actually a lagging indicator.
Volume bars are shown as a histogram at the bottom of your chart and are built while the candle is being created. If I want to see if the volume is higher than normal, I have to wait for the candle to finish before I can see it. That makes it lagging. If I want to view volume in real time, and make a judgment on whether it is high or low, I could view the speed of the movement on the time and sales column in my trading… Continue Reading
