VOLUME Vs INDICATORS

[katya1 11]

Probably not until you feel the pointlessness of working with indicators by yourself, you will not be able to refuse them. However, for a person who recently came to the stock exchange, indicators can help to understand one important thing, namely, to understand the meaning of systematic trading. System trading is the key to success, because you learn to act consistently (because in certain circumstances you do certain actions).

But why do indicators not work? Why are they often being delayed and output after the market went in our direction? Why can the value of the indicator stay in overbought or oversold zone for quite a long time?

In order to understand all this, you need to understand how to calculate the indicator.

Here's a diagram that should completely change your whole idea about the market and about the indicators, respectively.

 

Will -> Volume -> Price -> Indicator

1. The indicator is derived from the price.

2. The price is derived from volume.

3. The volume is derived from the will.

I.e. the values are quoted in this latest link. This formula, which just converts the current value of the market price.

I think now it becomes clear why working with indicators does not bear in itself any sense.

Partly, even working with the schedule of prices will be difficult for the trader because he will not understand how the price has appeared.

What is this "will"? Will is interest in the open position (either long or short). The will appears any market participant, at any time, at any price.

It is clear that traders with small volumes are not able to manage the market. That is why you should enter the market only when a big player starts to operate.

We cannot penetrate into his head and find out what he's going to do (this is insider information). But, often, there's no need, because all his desires are immediately reflected in the indicators of volume.

 

So we can see when a big player opens their stance, and this, in turn, gives us the opportunity to make transactions with a higher likelihood of a positive outcome. Our operations begin to acquire some meaning.

[tdiab 10]

Thx Katya1 for your valuable post.

 

R u talking about all the indicators including Vol one are lagers?

 

I think the Vol show us clear Pict when the big players r involved.

 

To get good Vol ind does someone need to get Volfix, or u can get that from different platform such ThinkorSwim?

 

Thx in advance for your response.

Ted

[nakachalet 10]

@katya1

 

what are your intentions of your post, pls?

 

there were many good points, yet

 

there were also numerous erroneous

assumptions as well as statements.

 

what do you intend to show, pls?

 

BIG PLAYERS....? tsk.... tsk.... tsk....

 

those who are referring to big players, mostly evasive and unknown entities,

are almost always virtually mostly at best.... not making it in the markets;

with all due respect.

 

it is alot easier to explain away with most excuses that.... big players here and

there and everywhere.... so as a trader would not have to own up to their very

own trading errors and practices or setups; again with all due respect.

 

give us some facts and figures to substantiate

what you said, K?

 

so perhaps we could see it your way and maybe convinced it is indeed

futile not to know the big players. it is known fact there are big players,

but my point is, let the big players do whatever they wish; we small retail

traders would just trade our own setups, perhaps.... just gathering a

1% profit per trading session.... is just aplenty for any trader.... is just

my one old man's opi. again with all due respect.

 

awaiting your substantive facts and figures, if you have time, K?

 

thx

 

nakachalet@gmail.com

Edited March 2, 2016 by nakachalet