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suby

Is the Price to Volume Relationship All You Really Need to Trade?

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There's not much I can add to zdo's post, but you've taken quite a turn here. First the question was whether or not the price:volume relationship was all one really needed to trade, and I replied that yes, it was. But now we're into multiple bar intervals, multiple indicators (which appear not to be fully understood), Forex (which doesn't have volume) and so forth and so on. What started out as simple has become unnecessarily complex.

 

No one can stop you from pursuing this course, but I suggest that you stop and think very carefully before embarking on it about what you really want and if this is the best way for you to reach your objectives. Otherwise you'll end up in the same soup as nearly everybody else.

 

Db

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...taken quite a turn here...

 

not if ‘thriving’ is actually being created…

 

Price and volume can be enough, but price and volume can not be enough for everyone. He must find that out for himself

… the point I’ve been making herein is that “end[ing] up in the same soup” (simple or not) PLUS “going on through the soup” is ultimately the best way to go… get in the soup but predetermine not to end in the soup...

… that not following the beginner’s exploration impulses and embracing the ‘mistaking as fast as possible’ stage to completion, one has far fewer chances of finding one’s own best ways to approach trading…which in trading is the equivalent of living life in a ‘dead end’ job …

 

The foregoing is NOT advice! ;)

Edited by zdo

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not if ‘thriving’ is actually being created…

 

Price and volume can be enough, but price and volume can not be enough for everyone. He must find that out for himself

… the point I’ve been making herein is that “end[ing] up in the same soup” (simple or not) PLUS “going on through the soup” is ultimately the best way to go… get in the soup but predetermine not to end in the soup...

… that not following the beginner’s exploration impulses and embracing the ‘mistaking as fast as possible’ stage to completion, one has far fewer chances of finding one’s own best ways to approach trading…which in trading is the equivalent of living life in a ‘dead end’ job …

 

The foregoing is NOT advice! ;)

 

You're making some assumptions, though, that are not borne out by the OP and the original question. I answer what has been asked. If the asker hasn't provided whatever information is required for a different answer, then the process can go on from there. He may well have been in the soup for months, or longer, and wants to know if P/V can be the way to go. Yes, it can. One can also load up his chart with all sorts of indicators and channels and bands and zones and so forth and go from there, but that wasn't the question that was asked.

 

Exploration impulses are fine, and I include them in my trading journal "template". But they needn't go on and on. And finding one's own best way to approach trading may be completely irrelevant to what the market demands, as well as taking a considerable amount of time, which may account for all those who've been at this for years yet still can't trade.

 

It takes a bit of focus to avoid mixing up this thread with the thread on how long it takes to learn how to trade. Odd that they should both be popular at the same time. But there's no need for me to post in this one anymore since I appear to have taken the OP at face value and shouldn't have.

 

Best of luck to everyone concerned.

 

Db

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Colonel B,

 

Thank you for your insight!

 

I'm not sure if you use think or swim but do you know if it is equppied with the VPOC? If not what to you recommend for someone to use this tool?

 

 

"

What you are missing is what you do want is to figure out where the institutions are trading and trade with them. Why? Because they move the market. That is why"

 

How do you determine/grasp where institutions are trading? Volume spikes?

 

I use ToS but not for my main trading charts. I use it for option quotes. I use it to check stock prices. And I use it to listen to Ben. Volume profile is going to give you half of the picture. Its a good solid half but there are going to be things missing. I use Market Delta myself so I get the "footprint" with the bid/ask along with market profile and volume profile. You can see where other prop guys and institutions are stepping in on the footprint. You don't know who it is exactly but you can see volume get let out at certain prices. You can also see the MA guys who are late to the party and where and when they show up. I know that Sierra dose the same type of thing and for a fraction of the price but I like the fact that I can pick up the phone and get customer support.

 

On volume profile I think the larger volume areas are magnets and the lower volume area are resistance. I would stay away from larger areas. Also this isn't a thing you can back test. You need to see this in live action with areas in had to see if it pans out. You cant back test it because after the profile is filled in then you cant see the smaller areas.

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