This Element is an excerpt from Investing with Volume Analysis: Identify, Follow, and Profit from Trends (9780137085507) by Buff Dormeier. Available in print and digital formats.
Project emerging market trends by using the crucial piece of information most investors ignore: volume.
Market volume is a crucial piece of investment information. But most investors are ignorant of it: Financial analysts don’t consider it, while technical analysts underutilize it. This article explains how volume provides essential information by indicating a price change before it happens and helping technicians interpret its meaning as it happens.