Open and Free Discussion on Volume

[DbPhoenix 42]

Wow, thread really got going. Amazing how some great things can come out if you just let them. No need for overzealous mod's to shut threads down.

 

There's some great info presented here and that's all my intention was. I thought the other thread on volume had some promise but it was quickly shut down so I started this one.

 

Keep it up guys.

 

 

 

 

If my little area & this thread is beneath you DB, please feel free to show yourself the door and head back to your area. As my first post stated, this thread is to discuss volume where a mod isn't going to shut it down. A place where people can post w/o worry of a thread being closed, moderated or changed in any way. I'm trying this new radical thinking when moderating an area.

 

 

Except for mat and a couple of others, however, none of it has anything to do with Wyckoff. Your forum, on the other hand, is just perfect.

 

Enjoy.

[HAL9000 10]

I just looked at slow corn after some time.

 

Volume ... additional hints ... :rofl: ...

 

I am not sure how tradeable it was in real time,

but look at the volume spike at bar 1633.

Selling started and continued during the next 7 minutes (6 bars) -> signal ?!

 

Then just watch what happened later (pull back and ...).

 

So here is my chart from today's (25.06.09) session (between the vertical lines).

 

[HAL9000 10]

There are a thousand ways to scalp a cat!

 

Now look at this one!

 

There is a 50 linear regression channel with 2 SD bands instead of the ADXVMA.

 

 

And not to forget about trendlines and s/r lines,

flips and ... you know! :rofl:

 

Hal

 

:did I say that?:

[HAL9000 10]

Confused?

 

Just one more.

 

Guess what it is, but doesn't it makes sense?

 

Another view:

 

 

Well, it seems to be, that all truth is a tale, that ...

 

 

Hal

[rigel 10]

 

The current flavour of the month is this 15 second DAX with volume. I am growing to like it in fact I have a strong hunch that one might be able to scalp from it alone without much regard for 'context'. I am sorely tempted to put together a simple scalp strategy more (maybe solely) focused on the 15 second chart. It just seems to be working real nice on the DAX right now.

 

 

Have to be pretty quick in making decisions based on 15sec

Have you tried looking at 1min on Dax, I am trying to blend volume aspect with Al Brooks setups, then they make much more sense at least to me otherwise it is easy to get caught up in trying to fit in an unfolding pattern or setup in the many sometimes overwhelming number of terms employed by Al, the latter process was beginning to distract and giving a headache:)))

[BlowFish 10]

Hi rigel I don't actually trade from 15 seconds (though the paterns that brooks talks about occur there) it is more a kind of barometer to try and judge 'pressure'. One has to be careful not to get 'drawn in to' that chart.

 

What these fast charts seem to show better (on the DAX at least) is the sudden short peaks of activity. Often after a spike in activity you get a 'rest' which means that the spike can get lost on slower charts. Its a way of looking inside the bar if you like.

[rcossey73 10]

Just look at the volume peaks. "Peaks" are kind of a relative term but look what happens when there is a spike that is about 4 or 5 times the norm. If you simply faded any 15second bar with 400+ volume I am pretty sure you would make decent money. If you only look at this sort of thing where you might anticipate major S/R even better.

 

So you have 1 trader who thinks the price is going up and he buys up 1000 contracts. On the other side you have 1000 traders who think the market is going down and they each sell 1 contract. What exactly is that 1000 volume telling me to do?

[Tams 20]

So you have 1 trader who thinks the price is going up and he buys up 1000 contracts. On the other side you have 1000 traders who think the market is going down and they each sell 1 contract. What exactly is that 1000 volume telling me to do?

 

 

Nothing ..... ..... .....

 

 

however, if you also know the following information, it might help:

1. prev volume

2. prev prev volume

3. last trade price

4. prev price

5. prev prev price

[rcossey73 10]

Nothing ..... ..... .....

 

 

however, if you also know the following information, it might help:

1. prev volume

2. prev prev volume

3. last trade price

4. prev price

5. prev prev price

 

Sure

 

1. 300

2. 250

3. 950

4. 949

5. 948

 

Does that change anything?

[Mr_black 10]

this is good sample of price volume relationship :helloooo:

[rigel 10]

So you have 1 trader who thinks the price is going up and he buys up 1000 contracts. On the other side you have 1000 traders who think the market is going down and they each sell 1 contract. What exactly is that 1000 volume telling me to do?

 

Get hold of Vadym Graifer's book "Techniques of Tape Reading"

[brownsfan019 17]

Hi rigel I don't actually trade from 15 seconds (though the paterns that brooks talks about occur there) it is more a kind of barometer to try and judge 'pressure'. One has to be careful not to get 'drawn in to' that chart.

 

What these fast charts seem to show better (on the DAX at least) is the sudden short peaks of activity. Often after a spike in activity you get a 'rest' which means that the spike can get lost on slower charts. Its a way of looking inside the bar if you like.

 

BF - post a few charts if you get chance. I can't even fathom having a 15 sec chart up! lol

[thalestrader 14]

BF - post a few charts if you get chance. I can't even fathom having a 15 sec chart up! lol

 

Hi Brownie,

 

Check Blowfish's post #45 in this thread - he posted some good charts there.

 

Best Wishes,

 

Thales

[thalestrader 14]

this is good sample of price volume relationship :helloooo:

 

 

Great!

 

How much does it cost to get the explanation as to how you are trading that information?

 

Thank you!

 

Thales

[atto 20]

BF - post a few charts if you get chance. I can't even fathom having a 15 sec chart up! lol

I use a 5 sec chart (and I don't scalp either!). I didn't trade most of today, but I'll try to remember to save some charts with my trades next week.

 

I thought it was insane the first time I pulled it up too, but it grows on you.

[johnjohn1hew 10]

Gradually rising volume on a rise makes sense, as more and more buyers are participating. If volume was rising and price was not keeping a consistently strong uptrend, then that is a sign of a growing presence of selling. Declining/low volume on a pull-back is a good indication of strength as the bears who want to short are few and the profit taking by the scared longs is not substantial. Then a rise out of the pull-back on rising volume is a good sign as, once again, more bulls are participating and possibly whoever shorted/sold during the pull-back are now covering and/or re-entering.

 

An entry would have been at the beginning of the rise, if you were able to judge price action and/or volume accurately to sense weak selling and stronger buying or in one of the pull-backs.

 

For money management, my stop would have been continuously moved to below the pull-back low, and if i sensed a weakening of upwards strength, then i would have either waited for price to hit my stop or i would ave just exited.

[wjrusnak 10]

5 second.... 1 tick.... 3 tick.... definitely the way to go if you want to see whats happening at key levels. Use that and a nice size larger TF and it feels like being on top of a mountain, but with a telescope... you see it all And you will also get a more detailed view of the volume spikes, as Atto pointed out today in chat.

[rcossey73 10]

Gradually rising volume on a rise makes sense, as more and more buyers are participating. If volume was rising and price was not keeping a consistently strong uptrend, then that is a sign of a growing presence of selling. Declining/low volume on a pull-back is a good indication of strength as the bears who want to short are few and the profit taking by the scared longs is not substantial. Then a rise out of the pull-back on rising volume is a good sign as, once again, more bulls are participating and possibly whoever shorted/sold during the pull-back are now covering and/or re-entering.

 

 

This is exactly where I get lost.

1 unit of volume = 1 buyer and 1 seller. Correct?

 

If so how in the world can you attribute gradual rising volume as "more buyers"? You could just as easily claim it is more sellers. It seems to me there is an equal number of sellers and buyers, but maybe not.

 

I often see a 10 point move on the ES with declining volume and then a few minutes later see a 2 point move on rising volume. Not sure how that is possible if rising volume means more buyers.

[atto 20]

This is exactly where I get lost.

You are absolutely correct. A change in volume signifies a change in interest. Volume is simply the number of contracts exchanges, each with a buyer and seller. Price is moved by an inequality between buying pressure and selling pressure, which may happen on little (or a lot) of volume.

[bathrobe 10]

Volume leads Price.

 

Always.

 

- Spydertrader

 

Possibly, but what if orders of 1000 are placed at 900, 900.25, 900.50, 900.75 - if price never reaches these levels the 4000 contracts are not traded.

 

Some traders will trade only if the price they want is filled, others will trade when they see a swift move which can happen on low or high volume.

 

I do not think one leads the other, I think depending on the market participant (1 trader w/ 20,000 lots or 20,000 with one) 1 will lead.

 

Some systems may take volume and time into consideration, others, price of cash vs. futures, others may use volume and price.

 

I am trying to say I think it depends on the person or system.

[Spydertrader 10]

I am trying to say I think it depends on the person or system.

 

Volume leads Price. Always.

 

These words do not aply to people or systems.

 

Volume leads Price refers to the fundamental principles by which all markets operate.

 

- Spydertrader

[Kiwi 16]

One of the wonderful things about the markets is their ability to inspire absolutist statements.

 

Volume leads Price. Always.

 

 

Well, probably not grammatically a statement but you know what I mean.

 

 

 

An even more wonderful thing about the markets is their ability to demonstrate that nothing is ever "Always" true. Ever. Just when one least expects it.

[bathrobe 10]

Volume leads Price. Always.

 

These words do not aply to people or systems.

 

 

- Spydertrader

 

You are entitled to your opinion, I see it both ways.

[thalestrader 14]

Volume leads Price. Always.

 

These words do not aply to people or systems.

 

Volume leads Price refers to the fundamental principles by which all markets operate.

 

- Spydertrader

 

You reply to all posts except those asking you to demonstrate how you have come to such a conclusion. If you cannot demonstrate it to be so, then you ought to preface your statements with the locution, "in my opinion ...".

[Tams 20]