How predictive is volume to index futures?
- Thread starter Susannah
- Start date
... ET, the best entertainment that money can't buy.Buy the way ... if volume levels did not affect how you were trading today, well ... whatever man. :eek:
Quote from jack hershey:
continued....
*sigh* this is the truest thing you have said...
continued....
*sigh* this is the truest thing you have said...
sorry to have confused you. I somehow thought the concept of evidence would be lost on you...
Volume is important, S/r is important, price is important...
Let me put it to you this way..
a new question... if you have no Volume..do you have price?
NO...
another question... If you have no price can you have volume?
NO
You cannot have one without the other therefore I would deem them both to be vital.
Volume is especially imporant when considering the amout of size you want to do and how much yoru cost of entry will be..
It has only been in the last seven years that Volume has been available to the general public intraday in futures.. thsi si due to the electronic mkt (globex) The old charts only showed the number of trades as they were reported in the pit.. so you might get ten and have 1000 contracts traded.. and 1 and have 1 contract traded.. or 50 and have 1000 contracts traded.. my how things ahve changed.. part of the big "EDGE " floor traders had was that htye were privy to who was buying .. how much they were buying (selling) , the price levels and when.. so I would absolutely deem Voluem important... HOWEVER, THERE IS STILL A TON OF INTRADAY SCALPING GOING ON IN THE FUTURES AND VOLUME figures are difficult to get a good feell.. unlike individual stocks which seem to have more people/funds/ managers... buying and holding.. fund managers are not day trading .. so i think the volume in stocks is much cleaner than futures. Lastly, I traded futures intra day for years without the volume on my screens.. (due to not having pit contact voluem only trade volume) and i did ok.. i seem to be much more confident now that I have volume.. real time. I do wonder though if there si a way to get "trade volume " again, but it wouldnt be as accurtate since the computers now chop up large orders into multiple small ones
Let me put it to you this way..
a new question... if you have no Volume..do you have price?
NO...
another question... If you have no price can you have volume?
NO
You cannot have one without the other therefore I would deem them both to be vital.
Volume is especially imporant when considering the amout of size you want to do and how much yoru cost of entry will be..
It has only been in the last seven years that Volume has been available to the general public intraday in futures.. thsi si due to the electronic mkt (globex) The old charts only showed the number of trades as they were reported in the pit.. so you might get ten and have 1000 contracts traded.. and 1 and have 1 contract traded.. or 50 and have 1000 contracts traded.. my how things ahve changed.. part of the big "EDGE " floor traders had was that htye were privy to who was buying .. how much they were buying (selling) , the price levels and when.. so I would absolutely deem Voluem important... HOWEVER, THERE IS STILL A TON OF INTRADAY SCALPING GOING ON IN THE FUTURES AND VOLUME figures are difficult to get a good feell.. unlike individual stocks which seem to have more people/funds/ managers... buying and holding.. fund managers are not day trading .. so i think the volume in stocks is much cleaner than futures. Lastly, I traded futures intra day for years without the volume on my screens.. (due to not having pit contact voluem only trade volume) and i did ok.. i seem to be much more confident now that I have volume.. real time. I do wonder though if there si a way to get "trade volume " again, but it wouldnt be as accurtate since the computers now chop up large orders into multiple small ones
Although you made a question so that your own answer fits it well...
Volume Analysis is useful to those that need it.
However, there are some price action only traders that don't need Volume Analysis simply because one of the following approaches is being used:
A) They see volume within the price without having to plot volume on their charts.
I notice that the above tend to be traders with a lot of trading experience as price action only traders.
Thus, I've not seen this in those that's been trading a few years or less.
B) Volume Analysis has been replaced with something else (e.g. volatility analysis).
----------------
Volume Analysis works (it's useful) but it's not needed to do any Supply/Demand Analysis (requires thinking outside the box).
Also, I mention in another past thread about a survey that was once done and the survey revealed that most price action only traders that have been profitably trading for many years...
They eventually remove volume from their charts not because it's not useful but because they no longer need it for whatever reasons involving price action only trading.
Last of all, as someone mentioned earlier...
If someone is a trader that's still using volume analysis for their supply/demand analysis...
The old Dbphoenix threads is a good place to start learning about Volume Analysis in combo with a few books about Supply/Demand.
Mark
Jack, please contact me or PM me as I want to be on that space ship of yours at launch time!!!!!! PLEASE!!!!!! I want to leave this galaxy as bad as you do and searching for the "answers" is my goal too.
Think of it Jack....you will have my captive attention while we speed thru all the uncharted areas of the universe, explaining to me the various channel and whatever stuff about trading. I won't be ble to go anywhere so I will have to listen to your bullshit.
Please, Please,Please contact me Jack. I bought the purple leisure suit (matching) you told me to for the possible photo ops you said we might have on our departure date..
Thank You so much!@!!
Think of it Jack....you will have my captive attention while we speed thru all the uncharted areas of the universe, explaining to me the various channel and whatever stuff about trading. I won't be ble to go anywhere so I will have to listen to your bullshit.
Please, Please,Please contact me Jack. I bought the purple leisure suit (matching) you told me to for the possible photo ops you said we might have on our departure date..
Thank You so much!@!!
Mark,
Well said....That pretty much wraps this thread up.
Like most life support trading systems, volume is very much a case of using it if you cannot live without it.
But be aware that every second spent considering life support systems is a second spent at the expense of reading price.
I would like to make this comment to life support readers ......
"allow one tiny corner of your mind to remain open to the possibility that ultimately price is all you need, no matter how faint this concept may seem to you in this moment"
regards
f9