Volume Traded

[whitewookie]

This might be a real noob question so thought I'd place here, but does anyone use the volume traded figures and percentage on the 'market overview' box as a key indicator.

I've only been using BA a few weeks and have started to take more notice of it today as a sign that a horse might be steaming/drifting...seems to help thus far.

Advice / warnings?

Thanks

[rinconpaul]

I don't trade, just straight bets. Volume looked interesting to me too, at one stage, and I researched it pretty thoroughly. To cut a long story short, volume of a selection relative to total volume traded and then converted to price , is NOT a reliable indicator. Just look at the longshots that get up. Stuff all volume, but still won! Volume is a good indicator of hype and the 'follower' factor. Punters look for steamers and then pile more money on without any form assessment at all, just following the crowd over the cliff.

You'll get more insight looking at price rank ratios. Look at the implied probability % diff between say 1st and 6th rank on a comparitive basis.

[whitewookie]

Thanks for the reply.

I trade pre-race and often have little interest in who wins. What you've said though fits in with what I'm thinking, the volume traded is often an indicator on which way the price will swing. Not 100% reliable but can be one of several good indicators.