Why do they say that the constant volume bars offered by some data providers do not work well? So ... not all providers offer the same data?
Does anyone know?
Does anyone know?
Constant volume bars
- Thread starter trader1974
- Start date
There's some squish in there. Do you count volume on outrights if it is implied out of spreads? Do you count OTC transactions? Stuff.
I don't understand anything but I will investigate.
Can differences affect trade?
I’ve experimented with vol bars and not run into difficulty.
Anyone see specific negatives?
Anyone see specific negatives?
As far as not working, people who say that might be referring to data feeds where time and sales data is aggregated into snapshots vs trade by trade data building the volume bar.
You can put Constant Volume Bars on different platforms with different data feeds and they will all be a little different. Its the same with minute bars and range bars.
Volume bars have pros and cons, like anything in trading you
get a little and give a little.
They help get me into a breakout sooner, they help with set ups on low vol days.
Cons: high volume days print many bars, many more decisions to make in a shorter
amount of time. You have to be fast, bars close at different time intervals.
get a little and give a little.
They help get me into a breakout sooner, they help with set ups on low vol days.
Cons: high volume days print many bars, many more decisions to make in a shorter
amount of time. You have to be fast, bars close at different time intervals.
What is meant by this? I mean: why can't it close at same time intervals like price bars?
What is meant by this? I mean: why can't it close at same time intervals like price bars?
That's because Volume bars are populated by the volume of executed trades, and are not based on time. They open and close at whatever parameter the user sets.