easy · Volume Spread Analysis effort-vs-result-spread

In the context of Volume Spread Analysis, why is 'Relative Volume' more important than 'Absolute Volume'?

  1. Absolute volume doesn't account for what is 'normal' for a specific security.
  2. Absolute volume only works in Forex markets using tick volume.
  3. Absolute volume is always 'cancelled out' because for every buyer there is a seller.
  4. Relative volume is the only way to see the 'Order Book' visibility.

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