Effect of daily VOLUME on YM behaviour..

[Dr.Greenback]

Quote from T.A.P:

Doc Green, thanks for your input. You obviously have more experience than I do and your comments make sense.

However indulge me in my thought process on my the reason low vol days are choppy and less predictable....

See, here's where we part ways friend. I'm not saying low vol. makes markets less predictable, or choppy. However, I understand how you or anyone can have this perception. However,the validity of your premise is the real question which needs to be asked. And has you can see, you will get a million and one different answers.

 

[bsparkyman]

The ym was thin today, something is going on like I posted last week. Seat prices are dropping for the idem on the cbot, ask dropped another $2,000 today. Maybe a bad sign with the merger as more will move to es and other markets. Still good trading market.

Weather it is choppy or treding, light or heavy volume it is an art to identify areas of support and resistance. Today it was written all over the chat. Open up your time frame to 15 and 60 minute to identify higher highs, lows and buying and selling.... Then trade off the 3 minute. Beautiful day today...

 

[tradingbug]

Quote from whitster:


the key is recognizing when to stand aside and NOT fade a move (or pending move) which is a big part of my trading. i use numerous factors to determine the suitability of the move

Would you elaborate on what tools you might use to determine the suitability of the move?
Price dependant, vol dependant....etc

 

[whitster]

i would prefer not to (bartleby...) since that is a substantial aspect of my trading edge.

but to give general hints, look at what the institutions are doing. look at what retail is doing. look at what locals are doing.

 

[murray t turtle]

partial Quote from
T.A.P:Greenback

IM TRYING AGAIN WITH THIS THREAD. I STUFFED UP THE TITLE, ETC.... LONG DAY..


I am relatively new to YM day-trading but am starting to see decent results. However I have noticed that I have trouble on low volume days - such as today.

Hope this isnt too "Trading 101" but could anyone please confirm or deny my following suspicions on the effects of volume.

When daily volumes are low:-


* Hard to determine the medium term trend..
* Its a good day to stay out of the market.

Thanks much... appreciate any feedback.

==============

Tap;
While its true trading, including YM,ES can be difficult;
let's dont over complicate it .Volume is real , real slow[takes weeks] to affect med trend, at all.

Agree,
that you should stay out of market if you find it ''hard to determine medium term trend''
50dma,55dma,60 day moving average all do a fine job of measuring medium term trend. Good question.

May be should also stay out;
or find out,
the difference in a medium term trend [50dma] in a bull market/bear market. Like daylight compared to dark


Hope this helps;
it helps me.