A trader explains why following volume and order flow beats watching price action alone, especially on lower timeframes where fake highs trick you. He uses Dow Theory's higher highs and lows as a starting point, then argues volume shows where most traders actually are.
You're gonna understand the markets way better. I cannot explain how my vision of the market changed and how much this made me profitable, because a lot of people might use this as a way to analyze market, right? Classic market structure: higher high, higher low, higher high, higher low, higher high, higher low. This was invented in the 1850s by a guy named Charles Dow, Dow Jones, and it's a way to read the market that tries to understand the swings in price and use price action and candlesticks as visual reference points. You're trying to understand order flow, but you're based through price. But we do not want nowadays to be caught in just price action, and because a high can be fake, especially in the lower time frames, right? So what we want to follow is not price. We want to follow the money, and the money is where the volume is, because that's where most money is traded.
