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Mastering the art of analyzing volume for trading can take years of experience, and a
persistent attitude. Volume is a critical aspect of technical analysis.
However, there are not many trading books devoted to the topic of volume analysis. Most
trading books cover volume as a secondary topic and do not offer an in-depth discussion.
After consulting Google, Amazon, Goodreads, trading forums, fellow traders, and my
memory, I have rounded up ten trading books for traders who want a quality education
on volume analysis.
• Market Profile
• Wyckoff Analysis
It covers a wide range of essential topics and opens a window for you to observe the macro
players. It’s also great that Coulling grounds her approach to the volume analysis with
price action.
You might find that the book oversimplifies some trading concepts and ideas, but that’s
acceptable or even desirable as an introductory book.
• Price Analysis
• Reading Volume
With its broad range of topics, this is a book that even professionals and veterans find
helpful.
The author of The Trader’s Book of Volume, Mark Leibovit, is a technical analyst with more
than 35 years of experience. This book focuses on the role of volume in technical analysis.
With more than 400 charts, there is a lot to go through here.
In addition to volume indicators, this definitive guide also covers market breadth
indicators which are useful for uncovering another market perspective.
MARKET PROFILE
Market Profile is a charting method invented by Peter Steidlmayer while he was at the
Chicago Board of Trade (CBOT). It is derived from price and volume data and has a
characteristic Gaussian bell shape.
Any trader interested in taking advantage of volume will benefit from learning Market
Profile concepts.
Mind Over Markets is a classic trading book on Market Profile. James Dalton is a towering
figure in the interpretation of Market Profile techniques.
This book has many intriguing trading ideas that will open your mind. Once you’ve attained
an essential foundation in technical analysis, you should start reading this book. You need
to put in serious effort to work through its contents, but it’s worth it.
When Market Profile was first developed, volume data was hard to come back. (Volume
was a later addition.) However, through this book, you can appreciate how Market Profile is
linked intricately to volume analysis.
WYCKOFF ANALYSIS
Richard Demille Wyckoff (1873–1934) was an early advocate of using technical methods to
understand financial markets.
According to Wyckoff, you can figure out the supply and demand forces in the market by
price action, volume, and time. He’s one of the earliest to describe a holistic framework
that combines price and volume.
You can find this book for free on TraderGuider’s website. Click here to download.
Gavin Holmes is a student of Tom Williams. If you’re looking for more materials on VSA, you
should take a look at his book, Trading in the Shadow of the Smart Money. This book
contains over 50 price charts that illustrate VSA concepts.
If you’re looking for a serious and practical education on applying Wyckoff’s ideas, this is
the book you want.
But if you’re looking for new trading ideas based on volume analysis, check them out.
Value in Time contains exciting and original concepts to extract more value from volume
data.
This book will be helpful for developers of volume indicators. You will gain many ideas for
identifying market manipulation. But to use them in your actual trading, coding skills are
essential.
One drawback of the book is the many references to his Ord Volume tool which is available
for a fee on his website.
Think carefully before you pay extra for any software or website.
With some coding skills, you can usually replicate what they are offering. Furthermore, the
paid services will not make you profitable.
They might help, but the most valuable takeaways from these books are the analytical
concepts and examples. The best approach is to internalize the trading ideas and
incorporate them into your trading framework.
In that case, I recommend starting with Investing with Volume Analysis by Buff
Dormeier for a broad and solid foundation.
Then, move on to Tom Williams’ Master The Markets (for VSA) and James Dalton’s Mind
over Markets(for Market Profile).