firewalker

I see all the profitable traders are a multiple of the losing ones... :applaud:

I can't think of any forum with more threads devoted to volume analysis

Alright, as promised... Took me a while to find a suitable example, but I think I have a good one here. 1-min chart of the NQ. Top horizontal line = resistance (1732) Bottom horizontal one = support (1705) A trendline is drawn and later on in the day a new one, when another swing low is made. When price finds support around 1705, there is no lower low, near the right of the chart at "X" there's a first attempt to break higher, but if fails. Price comes back to support and there is another struggle, but after that we manage to pop up to 1710. Would the first green dot be an entry signal? After that, price retraces, although it's more like a time retracement than a price retracement: very tiny bars and very tiny volume as well, almost complete dry-up. Do you wait for the second green dot? By then price is already 6 points higher than support though... I've chosen this chart because, obviously, what happens next will not be what you want to see. But are there are "warning signals" here? Or do you just go along with what you see and pay attention if the equilibrium changes? After all, no one says you can't get out at breakeven... So Soultrader, would you take this trade, or in what aspects is it different from the first chart you posted in this thread?

It's the off-topic thread, so chatting is allowed up to a certain point... wasp is my maid :o you betcha!

scaled out half at 608 for +60. stop moved to 650 on other half.

I used to pay a lot of attention to the previous day highs and lows, as they seemed to "attract" a lot of trades. However, the best trades I got from these levels was when they coincided with some important S/R level. Sometimes I wasn't aware of these and it just looked as though the low or high from the previous day range "caused" a reversal. But thinking about it, why would price reverse just because of a number that doesn't mean much? I agree that waiting for a trendline to break will usually get you in late. However, "so many good reversals occur before the trendline break" seems a rather problematic description, if you define a trend reversal as Sperandeo does (for example). I don't mean to dwell on semantics, but - unless I'm mistaken in interpreting the above - you are suggesting that a reversal happens before the last swing low or high is broken... but isn't that by definition what constitutes a reversal in the first place?

Just came within 1 point of my stop . Moved it to breakeven after it went lower a good 40 points seemed the sensible thing to do... but I would hate to get stopped out on the tick!

And the 22nd. Ignore most of it and just pay attention to it when it approaches important levels...

Thanks, but I'll hold my breath until I get an equally impressive exit :o Stop moved to breakeven.

If that's the case, you should contact IB... if it's green it's submitted and inquire. Whether you leave Webtrader open or not shouldn't matter after that. Ah! the live post curse, if you remember what postman experienced a while ago

Looks like a good idea! high volume up there, but no follow through, although after yesterdays unusual selling, I think today could be about consolidation.

I have 660-670 as resistance... although the NQ went up higher, YM still relatively around the premarket price.

DOW short 12668, stop 78.

TWS Webtrader? Are you sure you enabled triggering trades & stops after market hours? Although I don't see how that could effect FX hmm... where the order lines still in the quote panel when you came back?

I know! anecdotal evidence :o seriously, I think we all 'sense' that drops happen faster than rises...

cool avatar smb

I wouldn't necessarily say that drops are more steeper than rises... I've seen some parabolic rises that had a steep angle as well. Also, the biggest up days over history (in indices) have occurred in a bear market environment. But if fear is a bigger emotion than greed, it would seem logical than falls happen quicker than rises...

other half out at 68 (+3)... should've set a limit order as target :doh:

half out at 65 (+5), took a U-turn suddenly... wanted to scale out at 61, but was typing a msg...

An very similar thing just happened on the NQ... (upper line = R, lower line = S, red dot = short entry).

NQ short 1970, stop 73

some more lines I would add...

I'm not trying to make a point or anything. I'm sure we've all observed the volume as such... I just found the article interesting because it gives more perspective to the volume, once you compare with history. I might as well throw a question in the air then... how does one know the volume signals a lack of participation from the buyers or signals a situation where price rises because most of the supply has been removed? Another Q: The person from the article mentioned "summer volume"... how do we interpret volume from different time periods? Most of us will be wary of lunch time because the lack of any decent volume may be nothing more than an illustration that the big boys are having their break... But what about the impact of seasons and what about comparing volume from year to year? Volume now is on a whole different scale than, say, 20 or 50 years ago...

"The people who tell you that commodity prices today are driven by “economic fundamentals” are the same ones who said that house prices in Britain were rising because of land shortages. The amazing thing is that just months after losing hundreds of billions in the housing and mortgage bubbles, investors and governments around the world have reverted to the discredited fallacy that financial markets always reflect economic reality, instead of the boom-bust cycles and misconceptions that George Soros's book vividly describes." http://www.timesonline.co.uk/tol/comment/columnists/anatole_kaletsky/article3980797.ece

Note: Those who are interested in the subject of volume will also be interesed in Wyckoff's Volume Studies. Not sure where to post this exactly, but as it's volume related the Wyckoff Forums is a good place to do that... although perhaps a new thread no volume should be initiated? Anyway, moderators are free to move this post if they feel it's more approriate elsewhere. Found this interesting article refering to the "crap volume" that has been mentioned several times in 'Riding the Wyckoff wave' thread. "Typical daily volume at the New York Stock Exchange has fallen to between 1.1 billion and 1.2 billion shares a day from around 1.5 billion shares in mid-March. Marc Pado, a Cantor Fitzgerald U.S. market strategist, said the past two months' levels are typical of summer holidays starting "pretty much after the kids get out of school." [-> ehm, right ] "On Nasdaq, volume has slumped in the last two months to around 800 million shares a day, after running close to an average last year of 1.4 billion shares. Trading in previous years has not dropped off until after Memorial Day, the unofficial kickoff of the U.S. summer holiday season. This year, NYSE volume has held below its 200-day moving average of about 1.53 billion shares since April 2, the longest such below-par streak in at least 13 years. At the Nasdaq, prime exchange volume has been below its moving average since March 24, the longest such streak in 16 months. Full article here: http://www.guardian.co.uk/business/feedarticle/7531703