Chapter 9

Candlesticks and Volume

Just as the eyes are the window into the soul, volume is the window into trader sentiment. Volume is a very important, yet often overlooked, component of market analysis. With the large number of price momentum indicators, some of which were covered in Chapter 8, volume analysis is often relegated to the back burner when it comes to understanding trader behavior. With that said, volume data have also lost some of their integrity over the past few years due to the proliferation of high-frequency trading, but volume can still be an effective tool when analyzed over time.


In this chapter, you will

• Understand volume analysis and its value in understanding market psychology

• Learn methods ...

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