Dax

The reason I do not use volume analyses is because I believe it has little to do with correct analyses of near term direction of price. If you are a scalper & do need momentum, then I understand the necessity, otherwise in my opinion price & indicators show where price might be going, so you get in earlier than a guy that waits for volume to build up.
 
Quote from JSSPMK:

The reason I do not use volume analyses is because I believe it has little to do with correct analyses of near term direction of price. If you are a scalper & do need momentum, then I understand the necessity, otherwise in my opinion price & indicators show where price might be going, so you get in earlier than a guy that waits for volume to build up.
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Getting in ahead of volume is a good idea. But how would you know if you don't look at volume?

Increasing volume => price trend will continue
Decreasing volume => price trend will change

Fast pace is low risk.
Dry-up volume is high risk (what follows DU?).
Price volatility (bar size) is proportional to volume (statistically).

Why does price change? Supply is consumed. What is the indicator of this consumption? Volume.

Anyway, you seem to be doing OK so far without volume.

When will you move off spread-betting to the main contract?
 
Quote from PointOne:

Getting in ahead of volume is a good idea. But how would you know if you don't look at volume?

Increasing volume => price trend will continue
Decreasing volume => price trend will change

Fast pace is low risk.
Dry-up volume is high risk (what follows DU?).
Price volatility (bar size) is proportional to volume (statistically).

Why does price change? Supply is consumed. What is the indicator of this consumption? Volume.

Anyway, you seem to be doing OK so far without volume.

When will you move off spread-betting to the main contract?
More...

1. There are signs depicted in price/indicator patterns. Also I do not agree that fast pace is low risk, it can 'shoot you in the ass' just as quick as it can provide gain, but I will not get into something I was crap at, I was an appalling scalper, truly awful. It's just my observation.

2. When I am confident to do so, as you can see at the moment I have a problem with discipline, probably in 3-6 months or so.
 
Monday 26 Feb 2007

-13.00

Personal notes:

1. Wrong entry, should have been long (took weakish signal before market open, should have been after market open due to weakness in pre);

2. I don't know what that was all about;

3. Technically perfect entry, holding short into tomorrow.
 

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Tuesday 27 Feb 2007

+105.00

Personal notes:

1. Global correlation of a short signal increased the odds of today's sell-off, obviously yesterday's last trade was helped by pre-volatility analyses.
 

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Is this a retracement or a major correction? Looking at the weekly histogram I would say it could well be a correction that a lot of people have been going on about by trying to predict a top. I will have a look at world markets EOD later on to see whether any key support levels have been broken. I doubt I will take any more trades today, not too certain at the moment.
 
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