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Sean HymanSean Hyman
Keymaster
Post count: 4541

You’re welcome. I really think y’all are trying to dissect volume too much and overthink it.

The biggest thing to take from volume is “sentiment”, very bullish or very bearish sentiment. To watch patterns in volume, when the selling volume is dying off over time, it helps the buyers to overcome it. It’s not so much what happens in one daily bar of volume but what happens over weeks and months of volume, on daily charts and months and years on weekly charts.

What happens in one day means very little. Why? A lot of it was emotional and simply a response to the news of that day. The next day, there will be other news and more things for them to be emotional about. They’re fickle, on a daily basis. However, when assessing the volume trends, you’ll see hand-overs from the net sellers to the net buyers. Its why I watch and measure those selling volume spikes so much on the weekly videos. That’s the way you should focus on volume, for it to tell you about sentiment and if net selling is dying off, etc.