How predictive is volume to index futures?

[ctarmor-et]

Quote from syswizard:

yeah, but for that duration, it's called NOISE.
Trading NOISE ? That's known as scalping.
It's not a bad approach, but just "looking" at volume on a chart along with price action is not smart IMHO....an indicator which COMBINES both of these if much "smarter"....and less subjective.

What indicator combines both ?

 

[fireatwill]

Don't know if this is the correct place for this but thought it can't hurt.

 

[Charly]

Does anybody still use gohstrader's and

fireatwill's method?

Would appreciate details!

thank you for taking your time.

Charly

 

[Charly]

Quote from Charly:

Does anybody still use gohstrader's and

fireatwill's method?

Would appreciate details!

thank you for taking your time.

Charly

#######################################

I'm sure someone does however, who is it/who are they?
I always thought Et is a place where traders help traders.
Pity, pity.

 

[jjf]

How predictive is volume to index futures?

It can be very predictive and lead you to a 100% winning system.

Let me explain what I mean.

If volume at the ask surges as volume at the bid dries up
and if nobody else is paying any attention to this event
and if your market order is accepted immediately without slippage
and if everyone else suddenly wakes up and fills their market orders immediately behind your position

Then you have a winning entry and you do the opposite to close out.

cheers

 

[bighog]

When you use price action alone that means you understand the game. That means you are following and understand what the bottom line is all about. When you follow price only you are not redundent with "crutches" to delay your intuition from price alone. Price action alone does not need to be crutched with volume, Price "MOVEMENT" is the CAUSE of the players actions.

Let that sink in.............a change in price is the call to ACTION. Volume is the REACTION.

New traders use crutches (indicators) when starting out and if they make progress they drop indicators. Airplanes for safety have redundent controls, traders do not need redundent controls because what works will always work without using a crutch because trading is a game of playing the odds and nothing will help your trading more than having a solid, well honed set of GOLDEN SIGNALS based on price and price alone.

Think of trading like being an intelligent man that has a wonderful women and treats her with the unflappable respect she deserves and then the same man gets infatuated ( wants to jump her bones for the rednecks out there) with another women and fails to keep the barn door zipped up. Yes, price action only is like the wonderful women, when you get distracted by another you will miss out on what really matters.

 

[jjf]

Quote from bighog:

When you use price action alone that means you understand the game. .................................... when you get distracted by another you will miss out on what really matters.

That all seems like hard work Hog.
Isn't there an easy way of trading.

 

[jwcapital]

Volume and candles here. Of course knowing the general trand helps. I don't daytrade, but position trade--could be days or even weeks. These days, the institutions (the big money) have to sell on the way up and buy on the way down. So, during a bull market, what that looks like is heavy volume, a bull candle with virtually no upper range. As the price moves upward, volume typically decreases and the upper range increases. If this happens, you can look for downward movement. Now, if it is a pullback with light volume, indicating profit-taking by the late comers, you can bet that the big money will come back in, for they also buy on the way down. In bear markets, you see the opposite. You see ever increasing volume on the way down with solid bear candles. Bear traps again show decreasing volume with a bull candle or two, and small or bearish candles, followed by a high volume reversal. Only at the "bottoms" you want incredible volume, bull candle with long lower range. Of course, we do not know the ultimate bottom until it has already passed. Forget about catching tops and bottoms, concentrate on the middle 70% of the move.

 

[MrktObserver4u]

Volume has no predictive power whatsoever. Price is everything.

The only time volume is a factor is when when it is overwhelms an instrument in the natural course it "supposed" to take.