If the DOW goes up 30 points, why do I care what the total market volume was? My basket of stocks still went up 30 points, right?
Because if the volume is low, only a few people were satisfied with the new price level.
Although I am not certain that I agree with their logic 100% – whether the volume is low or high, there were an equal number of buyers and sellers, i.e. people who thought it was the right time to get in, and people who thought it was the right time to get out.
That is why indicator's giving an indication of momentum works better, and why you need to analyse trends, not individual data points.
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