MACD… Bollinger bands… moving averages…
If you’ve been trading for a while, you’re probably familiar with indicators like these.
You may have even tried a few of them in your own trading.
But the reality is that they’re what we call “lagging” indicators…
Meaning they’re based on historical data.
Fact is, there’s only one indicator that signals price movement before it happens…
And that’s volume.
Think about it like this: volume is the fuel that drives the market…
The more fuel there is, the greater the momentum.
A study of market volume published in 2001 out of The Wharton School of the University of Pennsylvania considered market prices over a 30-year period.
One of its major conclusions was this:
“Stocks whose trading activity is unusually large over a period, tend to experience large subsequent returns.”
In other words, when there is unusually high volume in any given time period (5 minutes, an hour, a day, a week)…
Then price tends to continue in the same direction in the future.
This principle has been shown to apply to all financial instruments and markets, so it applies equally to currencies, commodities, indexes, equities and ETFs.
It’s also a recognized fact that when prices are rising, the market will not fall purely as a result of low volume, but will simply move sideways as it takes a breather.
On the flip side, any reversal from a falling market cannot occur without an increase in volume.
Volume confirms the strength of a trend or suggests its weakness.
If the market is rising, and we have volume increasing, then this suggests that we have a strong trend supported by an increasing number of buyers.
Of course, if it were selling volume coming into the market, then prices would fall, or perhaps move into sideways congestion before falling.
But since that’s not the case, we can conclude that the volume is BUYING volume, and we can expect the trend to continue.
Conversely, if we have a rising trend but falling volume, then this is WEAK.
Because as we’ve just discussed, if the buyers are still in the market, then this would be represented by rising volume.
Therefore, a rising trend with falling volume signals that the buyers are no longer interested.
The trend is running out of steam and becoming exhausted…
And that’s the first sign of a possible change in trend.
Now my friend Randy over at Hawkeye Traders has made an absolute science out of volume trading…
And right now, he’s offering lifetime licenses on the Hawkeye Professional Package, which includes an array of indicators and tools designed to help you successfully trade using VOLUME.
Normally, the Professional Package is only available as a subscription…
But right now, you can get a lifetime license for the same price you’d normally pay for a year’s membership.
Along with the software and all the tools, you’ll get access to the Hawkeye Traders Inner Circle…
Where you can communicate directly with Randy and hundreds of other Hawkeye traders around the world every day.
You’ll also get exclusive access to all the premium, members-only training resources…
Including countless hours of video tutorials.
Listen, if you’re stuck at home in quarantine, then this is the perfect opportunity to master volume trading…
And this is the perfect opportunity to grab a lifetime license to the most comprehensive volume-based indicator package available anywhere.
And take the next step toward trading mastery!