Volume is a crucial technical indicator that traders should not overlook, according to Carter Worth, the founder of Worth Charting with over 30 years of experience in the financial industry. In a special Pro Talks discussion with CNBC’s Dominic Chu, Worth emphasized the significance of volume in making informed investing decisions.
While some chartists focus solely on price action, Worth believes that volume plays a pivotal role in understanding market dynamics. He stated, “The study of volume and price volume correlation is the single-most important thing one can do if one wants to engage in pattern recognition and studying price action trying to profit in the market.” Worth compares the relationship between volume and price to the philosophical concept that existence precedes essence, highlighting the importance of volume preceding price in market analysis.
During the interview, Worth shared insights on various topics, including his journey in finance, his approach to chart analysis, and the importance of having a defined time horizon for investors. His expertise and experience in the industry provide valuable insights for traders looking to enhance their trading strategies.
For more in-depth discussions and analysis on financial markets, consider subscribing to CNBC PRO. Gain access to exclusive insights, live business day programming, and expert analysis from around the world. By staying informed and utilizing key technical indicators like volume, traders can make more informed and profitable investment decisions in today’s dynamic market environment.
