The Price / Volume Relationship: Volume leads Price. Always. And without exception.
In order to comprehend how the above statement (both in concept and in practice) represents a true and accurate assessment of market dynamics, a trader needs to understand the basic structure of all markets and how such markets operate. Since all markets represent a fractal nature, it turns out, Mandelbrot had it right all along. By correctly and thoroughly applying a framework, in an effort to ‘see’ the various fractals operating on a market, a trader can begin to see the Price / Volume Relationship at work – all day, every day.
Succinctly, unless and until the components of one fractal reach completion, the next slower fractal cannot begin. It trading terms, unless and until the Volume Cycle Sequences reach completion, the current Price Trend cannot end.
In general terms: if Volume is increasing, then the Price Trend is continuing.
Such is the essence of the Price / Volume Relationship.
Much debate has ensued over the years with respect to whether or not Volume represents helpful and / or useful information with respect to understanding Price change. In addition, those individuals who do find value in Volume analysis have long argued their viewpoint for the best methodology for divining the information from Volume itself.
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http://www.traderslaboratory.com/forums/technical-analysis/6320-price-volume-relationship.html I disagree. This whole article seems speculative, like it admits towards the end. There can be price rise without volume rise, only after some time this trend becomes validated by a rise in volume or it collapses if no volume rise sets in. The premise price>follows>volume is not (always) true. Also I fail to see how some "Volume Cycle Sequences" needs to be completed before a trend change can happen. If you take a look at historic charts (e.g. the Jan '12 to March '12 period in total) no "Volume cycles" are completed and yet the trend changes.
@ OP: Nice visualization of volume patterns! I couldnt have put it better. The peaks always seem to confluence with early evening hours of the US East Coast. Too bad I have to stay up so long to catch that time frame from where I am (Germany) :X