Here is why I use volume. If you look at all the specs we trade the top of the chart is usually the day where the highest volume occurs. Go back and check out some the pump and dumps (which 99% of the stocks we trade are), and see if vol was highest at/near the top.
IMO, this is because the pros create volume to trick amateurs into buying. so many people here seem get exciting over big volume, 'oh look at that 5c wall being wiped', when most of the times that is the selling point (consistent/slightly increasing vol is what i want to see in an uptrend.) IF a stock has gone from 5c to 10c, on 50m vol, then say 25m vol transferred at 9.5-10c, then price drops below that range, a lot of the amateurs that bought between 9.5-10c because of the huge volume going through will end up cutting losses below 9.5c.
I could explain it more but I think you get the picture... the same is true for a stock trending down.
Of course the actual price is the MOST important factor, but volume does play a bit of a role in the spec scene.
