Yes, of course volume is a very important indicator and I have studied VSA and I have mentioned it before on this thread. Someone asked me a while ago about supply and demand . Here is an example, not a great one but it is FLC. Note candles stick 1. We have a rather large green candle. IE, reasonable spread from high to low . Volume is at 234K for the day. 2 days later , we have candle stick 2. Very narrow spread (small candle)but higher volume than candle stick 2. So , all things being equal if the volume was more shouldn't candles stick 2 be larger than candlestick 1? Red or green. Answer ,no, not necessarily. You have to dissect the candles. Candles stick 2 was full of more selling than candles stick 1. Supply.
FLC Price at posting:
52.5¢ Sentiment: None Disclosure: Held
