Thanks for your reply. I'm just asking this, because as far as I know, the market professionals give much attetnion to the volume linked with price action/price spread making their trading decisions solely based on this complex interrelationship.Hi Stag,
I'm very rare use volumes, mostly to see some confirmation around the level.
As Tom Williams writes in his book "Master the Market", these professionals are trading their own accounts and can see both sides of the market (current buy and sell orders). If syndicates are in the process of selling or buying large blocks of instruments, profs know these large transactions will have an immediate effect on the market, so they will also trade the futures and option contracts in order to offset or lower risk. This is why the future often seems to move before the cash. And such may give early signals to take action on the cash market.
Any comments from you on this? Thanks in advance.