Some traders brag that they only need price bars to trade successfully. They boast that they don't need any indicators on their charts.
Other traders agree that they don't need indicators, but they do like to add volume to their charts.
There are 3 things that are absolutes on a chart:
1. Price
2. Volume
3. Time
Most of the other elements traders put on charts are calculations based on one or more of these absolute values and we call them indicators.
Trading volume, like price and time, is not an indicator.
However using a volume indicator can be helpful in trading in that it can help us see the meaning behind price and/or volume more easily.
A trading volume indicator can dramatically improve your profitability, and the use of a volume indicator can make the analysis easier than reading the pure volume histogram at the bottom of the chart.
Trading with pure price and volume relationships is good, but in my experience, it is not enough. There are other "energies" in the market that need to be measured.
To increase your probability of success in trading, those other energies should be utilized.
For example, to know WHEN to enter and exit a trade, you must know how to read the energy of cycles.
To know the direction of the market, you need to understand the energy of trend.
To measure the strength of a trend, you must be able to diagnose the energy of momentum.
Trading volume indicators can also help you determine the strength behind the trend.
The more energies you have in your favor, the higher the probability of your trading being successful.
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