matinthehat

Here's my attempt: 8. Buyers have come back in and price and volume increases. To form a lower peak below the previous top. Price falls and volume is lighter. Buying pressure is being withdrawn. 9. Price rises and volume increases. Buyers have the upper hand but sellers are showing resistance. The volume peaks with prices indicating that the buyers are trying to reach upwards and since the price peak is below the previous (swing high?) top, sellers are displaying their limits. 10. Price declines on light volume. Buyers have withdrawn (possibly given up and could join in on the selling later). 11. The sellers have reached their previous low on light volume. The sellers did not have to try very hard. 12. Price rises on light volume and volume peaks at the top. The buyers tried, but the sellers showed their resistance. 13. Price declines on rising volume. Buyers are showing some support, but there is selling momentum and the sellers have the upper hand. There is a new low formed and it is met with a slight rise in price accompanied with declining/light volume. Selling pressure has slackened, but there is also a lack of buying pressure. Once the buyers have run their course price declines and volume rises to from another new low. There was selling momentum on this move.

Ya, i really do need to stop using those words. In hindsight i look a f*ing idiot. Thanks for the new vocabulary and perspective. I'll give the end bit a try.

Hopefully this is good: 1. New low with high volume = selling climax 2. Rise with light volume = selling pressure exhausted 3. Top with low volume = not enough demand 4. Lighter volume on decline = buying pressure seems to be exhausted 5. New low for the day with lighter volume = lack of supply 6. Rise with low/stable volume = selling pressure exhausted 7. Top with light volume = lack of demand 8. Decline with light volume = buying pressure exhausted 9. Spike on high volume = buyers came in but selling is still very overpowering 10. Decline on light volume = buying pressure is exhausted 11. Rise on light volume = not much participation on the rise 12. Top is formed with light volume 13. Decline on rising volume = excessive supply in the market

Here it is: I probably should stick with line charts until i completely understand IT. When i have bar charts up it makes "reading the volume and price action" seem kind of intimidating. But when i have this simple style up it doesn't look so scary.

Here is a chart of a downward movement of the YM. I have put my interpretation of it below. Please point out my errors. Thanks. 1. End-to-end down bar with very high activity = selling climax 2. Then a rise on lighter and dying volume = indicating lack of selling pressure 3. The high of the movement is on very low volume and is not able to reach the previous movement’s high nor the opening high 4. Then a decline on higher volume 5. The movement makes new lows on low volume and pushes passed the previous movement’s low = indicating that selling pressure has been exhausted 6. The lowest bar is followed by a indecision bar on lower volume than the low - this bar closes above the low - indicating that there are sellers and buyers, but not enough of either to push or pull 7. Then there is a rise with low volume - buying power is greater than the selling power as near the end of the move there is substantially higher volume with little price movement = indicating buyers and sellers seeking equilibrium 8. The next big up bar is on higher volume that saw selling pressure, but the buying pressure was greater 9. The top is on light volume and the buyers are not able to make new highs = indicating lack of demand 10. Then a decline follows on light volume - indicating buying pressure has been exhausted 11. The decline is broken by a rise with rising volume ending with extremely high volume and little price advance - the price does not really get close to resistance = indicating buying exhaustion 12. The price then declines on light volume = exhaustion of buying pressure - this move has a hammer with higher volume, but the hammer is a bearish one and the sellers overpowered the buyers 13. Price then approaches support on light volume and is not able to break through = indicating lack of selling pressure 14. Price then rises on light volume with one bar on high volume and then just stalls at the top on light volume = indicating equilibrium has been met - this move fails to make it to resistance, possibly meaning that there is now new resistance 15. The downward movement is then met by increasing volume and price breaks through support and then halts on its way down on low/dying volume and continues from there

I am a complete beginner but i know all the price action junkies would recommend "Reminiscence of a Stock Operator" and "Studies in Tape Reading" (Daytrader's Bible). Both of which you can find in the .PDF format in the WYCKOFF section.

I could not stay in chat because i am currently at my school and I would be burned at the stake for doing such a thing on public computers. Maybe sometime on the weekend (whenever) some people could get together with me and have a big price action dsicussion in the chat room. I can not participate in the morning sessions as i am always at school.

Note: Those who are interested in the subject of volume will also be interesed in Wyckoff's Volume Studies. Greetings, Below I have stated my ideas on volume. I was wondering if you could read through it and point out my mistakes and supply me with your opinions. Thanks. What is volume? Volume is the number of contracts that have been traded between a BUYER and a SELLER. What is your take on volume? I refer to the market as a ladder (like the DOM). Sellers chewing up BIDS is my idea of SELLING pressure. Buyers chewing up OFFERS is my idea of BUYING pressure. What does low and high volume mean? Low volume means that there is little participation. High volume means that there is a lot of participation (on one or both sides (depends on the pice bar)). Excessively high volume means that there is a lot of participation on both sides. (Below when I say HIGH volume I am referring to excessively HIGH volume) On a BIG up bar with low volume, what does this mean? It could possibly mean that there was little SELLING pressure as there was a small amount of contracts traded (remember a contract needs a buyer and a seller or it is not volume). It is also indicative of great BUYING pressure. This situation was caused by a lack of sellers and the buyers having to up their price in order to attract sellers. On a SMALL up bar with low volume, what does this mean? It could possibly mean that there was more BUYING pressure than SELLING pressure, but the difference was dismal. This could be indicative on buyers and sellers seeking equilibrium. On a BIG up bar with high volume, what does this mean? It could possibly mean that there was more BUYING pressure than SELLING pressure, but there was still a significant amount of sellers, or the volume would not be so high. On a SMALL up bar with high volume, what does this mean? It could possibly mean that there was more BUYING pressure than SELLING pressure, but the two forces are very close indicating equilibrium. On a BIG down bar with low volume, what does this mean? It could possibly mean that there was little BUYING pressure and great SELLING pressure. There was a lack of contracts traded indicating that sellers in order to attract buyers had to reduce their price significantly. On a SMALL down bar with low volume, what does this mean? It could possibly mean that there was more SELLING pressure than BUYING pressure, but the forces are close and both sides could be seeking equilibrium. On a Big down bar with high volume, what does this mean? It could possibly mean that there was more SELLING pressure than BUYING pressure, but there was still significant BUYING pressure. On a SMALL down bar with high volume, what does this mean? It could possibly mean that there was more SELLING pressure than BUYING pressure, but the difference was small as both sides could be seeking equilibrium.

No professional traders knew the answer? Surprising. Anyways i found the answer on the NYSE website: http://www.nyse.com/pdfs/StockBoughtAndSold.pdf.

This is coming from an absolute beginner, but it does make sense that this style of analysis would work better in a higher timeframe as higher timeframe volume are better representations of the "bigger" guys' moves.

Hello, Can someone please explain how floor traders' dealings appear on the NYSE listed stocks' time and sales? Thanks.

I would presume that all the PROFESSIONAL traders around do it because they love to trade. Do what you love, then money will follow.

Hello, Do i need a license to trade the e-minis? Thanks.

Yes, thanks. I ordered these books last Monday. I had some questions for the guy who put these books together and he responded to my e-mail minutes after i had sent it. He is a good guy and was very helpful.

Thanks diablo, i figured it out this morning after analyzing the DOM. Your explanation reinforced my findings. Thanks for the effort.

Can someone give me a explanation of how market and limit orders change the bid and ask prices? Also can you possibly supply some scenarios to? Thanks.

Please answer these questions: How do bid and asks rise and fall? Who's limit orders drive the market? If i enter a limit order to buy at the ask and it is not filled since the market gets away from me on the upside, and i keep it at that price, and then the market comes down, do i get filled at the bid or at the ask? (this is really confusing me) I can't believe the lack of information pertaining to this question. It's like people trade professionally without knowing every single detail of the markets...

Hello, Do these scenarios make sense? 1. Bull trap - sellers raise the price above resistance believing that they will be able to get higher prices - so the tape then shows more sellers than buyers with an increase in price - the sellers then realize that noone is buying, so down the price goes 2. Bear trap - buyers put in offers to buy at lower levels than the support - the tape shows a majority of buyers with a decrease in price - the buyers then realize that noone is selling, so up the price goes Thanks. edit : was in a hurry, sorry for the spelling mistake in the title

This is quite the book to find. Traders library does not have any copies nor does Amazon...

Hey, Does anyone know of an online book store that accepts paypal? It is the only method of payment that i have access to. And does anyone have any ebooks i could possibly have? Thanks.

Hey, I just finished reading Reminiscence of a Stock Operator. It was a really good book and opened up my mind to a lot of aspects of speculation. The next book i will be reading is The Futures game, although i will be reading Reminiscence of a Stock Operator a lot more times. After The Futures game i think i will look into Understanding E-minis and then dive into Mind Over Markets, SOM, and Markets in Profile. Oh and by the way, thanks for all the recommendations and advice. :missy:

Hi, I am currently simulating trading using NT and Zen-Fire. I have tested out that free MP code and i can't seem to get the TPOs to not overlap. Anyone else, who is using this code, having this same problem?

SUNGFITA just spammed me. :missy:

Blowfish you are a big help!Thanks. I have already started to read Reminiscence of a Stock Market Operator. I am really enjoying it.

Guys thanks a lot!!! I have the Ninjatrader and Zen-fire setup right now on simulation, but have not been able to find the screen-time required, as my school courses are kicking my but. I also currently have trading for dummies, but it isn't that in-depth. Keep the recommendations coming, thanks!