ES Journal Archive (2006 - 2008)

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Quote from romik:

I would like to hear views on volume analysis from other traders, it seems some use it others don't. IMO it has little value in positional trading, though for day trading (depending on strategy used) it can be beneficial in determining strength of an underlying signal.

To me volume determines the strength of a possibility of further price action. What is an average trade size on ES for a retail trader? How many retail traders day trade ES? As we know the majority of retail trades would only serve as a continuation of a price action started by a major trading equity and it is safe to assume that commercials would want at least 1 point gain, so monitoring initial large volume blocks on say 1 min TF can give an edge to a trader willing to jump on a bandwagon and scalp .50-1 point within a very short period of time. On the other hand large blocks @ the Ask can be overthrown by even larger trades @ the Bid.

Anyway, would like to hear others on this subject.
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Romik,
For me, being a breakout trader volume was very important. But I was just looking for quick scalps sometimes only in a trade for 3- 10 minutes or until I got my 2 points. I wouldn't expect it to be as important for the positional guys.

4re
 
Volume in my view is too subjective to be used in longer term trading. Most likely a trader interprets volume to suit his needs and I do not believe it is objective enough.
 
The daily chart is in the process of basing out. In fact the 20 day MA is nearly flattened out. The probability is increasing for a move upwards in the next week or so. I am still short at the moment in the short term account and have reduced my buy stop level to 1263.25. I am looking for some more downside , but will be watching for bullish divergence signal on intraday. Continued upward movement seldom happens on just a big one day reversal like we had. Rather, there needs to be a basing period, which I believe we are in now.
 
OK. Everyone rise & shine. Where's the direction things are looking relatively flat. Somebody give this mkt. a kick to get in going.
 
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