Monday, October 12, 2009

Another Look at Volume and Volatility

Note how volume has tailed off today, even when compared with Friday's low volume (top chart). That has resulted in narrow, range trade (bottom chart) today, with volume clustered in a narrow range (side histogram) between 1073.75 and 1075.75. It's a nice illustration of how volume correlates well with volatility--and how both affect intraday trading opportunity.