Volume and price analysis is a method employed by legendary traders like Charles Dow, Jesse Livermore, and Richard Ney to predict market movements and amass substantial wealth. These traders utilized the ticker tape, while modern traders leverage trading screens, but the underlying principle remains the same.
My introduction to trading was fortunate because it was based on volume. The rationale behind it was straightforward and persuasive. The most compelling aspect of volume, in my opinion, is its status as a leading indicator, a rare attribute in trading. Price is the only other leading indicator; everything else lags.
The goal of traders, investors, and speculators is to anticipate market direction. What better approach exists than to utilize the two leading indicators available: volume and price? Separately, they provide limited information. Volume is simply volume, and a price is simply a price. However, when combined, these forces create a robust analytical tool for confidently predicting market direction.
This book will provide you with a comprehensive understanding of volume price analysis from the ground up. Whether you’re a day trader or a long-term investor, trading any market, instrument, or timeframe, this book offers the ideal foundation for achieving success, just like the iconic traders of the past. A chart displaying volume and price is all you need.
With volume price analysis, one should be able to predict market movement. The combination of volume and price creates a strong and analytical technique to predict market direction.
