Investing with Volume Analysis: Identify, Follow, and Profit from Trends

Book Insight

“Investing with Volume Analysis” by Buff Pelz Dormeier delivers one of the most comprehensive and data-driven studies of how volume reveals the truth behind price movements. Dormeier, an award-winning market analyst and former portfolio manager, brings professional-level clarity to the relationship between price, volume, and trend strength. Unlike most texts that treat volume as secondary confirmation, this book makes it the primary analytical lens through which to interpret market intent, momentum, and sustainability. By integrating volume into quantitative and visual frameworks, Dormeier demonstrates how traders and investors can distinguish between healthy trends, false breakouts, and distribution phases — ultimately improving timing and risk control in every strategy.

Core Concepts

The foundation of Dormeier’s methodology is the principle that volume precedes price and exposes the conviction behind market moves. The book introduces readers to:

• Volume Weighted Moving Average (VWMA) and Volume Price Confirmation Indicator (VPCI) — proprietary tools that quantify volume’s influence on price behavior.
• The distinction between volume expansion and contraction, and how these shifts define trend maturity or exhaustion.
• The concept of price-volume divergence, where volume anomalies warn of reversals before technical signals confirm.
• Multi-timeframe volume structure analysis — aligning long-term accumulation and short-term momentum.
• The use of volume-by-price histograms, relative volume ratios, and distribution heatmaps for visual confirmation.
  Each chapter transitions from theoretical insight to measurable application, helping readers develop a systematic process for integrating volume data into any form of trading or investing.

Inside the Chart

With hundreds of annotated examples across equities, ETFs, and futures, Dormeier demonstrates how to detect subtle volume patterns behind every price trend. Readers see how volume acceleration validates genuine breakouts, how thin-volume rallies often fail, and how institutional accumulation leaves identifiable footprints. The book emphasizes contextual reading of volume — within consolidation ranges, directional trends, and market reversals — allowing traders to forecast continuation or exhaustion phases before they become visible to the public eye. Dormeier’s analytical framework transforms volume from a passive indicator into an active forecasting tool.

Author’s Edge

Buff Pelz Dormeier, CMT, is a recognized authority in quantitative technical analysis and a recipient of the Charles H. Dow Award for innovative research in volume-based analytics. His professional background in investment management and market strategy gives the book its balance between academic rigor and real-world application. Dormeier’s ability to blend mathematical precision with visual interpretation makes this work a cornerstone reference for both institutional and independent market participants seeking to master volume-based trend analysis.

Investing with Volume Analysis: Identify, Follow, and Profit from Trends By Buff Pelz Dormeier