By the end of this chapter, you should be familiar with
The methods of plotting volume information on charts
Traditional general rules for interpreting volume statistics
The major indexes and oscillators that are designed to use volume information as confirmation
The concept of open interest and how it might be used for confirmation
The concept of momentum
The major indexes and oscillators that use price data
The odds increase that a technical signal is correct if there is confirmation from another unrelated indicator. In the days when only chart patterns were available as a means of interpreting price action, the technical analyst used volume as the confirming indicator. Sometimes, depending on the calculating ...