How to read this VOLUME chart ?

Simples said:
What could the implications be if there were buying interest there, even though it was a red bar?

The next largest volume bar has a candlestick mostly red.
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do not see volume alone: these high volume bars occurred in a area of the chart commonly known as support.
never rely on one observation alone always co relate: is volume high or low as it tests a market low/high or a trend line.

never consider volume in isolation always consider background / context!!!!
 
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volume is a leading indicator and while this may seem an advantage,unless you know how much the lead time is, you will enter too early, if you rely upon volume alone:which is why many traders think volume is worth less.
a big buyer may not bothered about a drawdown of even 10-15 ticks and large volume is usually done by big players so this has to be taken into account by small highly leveraged traders
 
padutrader said:
volume is a leading indicator and while this may seem an advantage,unless you know how much the lead time is, you will enter too early, if you rely upon volume alone:which is why many traders think volume is worth less.
a big buyer may not bothered about a drawdown of even 10-15 ticks and large volume is usually done by big players so this has to be taken into account by small highly leveraged traders
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could you please explain in details (or provide link if its explained in the past) how volume leads price?
 
kaizer said:
could you please explain in details (or provide link if its explained in the past) how volume leads price?
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Disclaimer:
There are many old threads and posts on ET on the subject already, though it seems one need to be pointed in the right ways in the general right directions and after much dilligent work, before the contents start making personal sense. They certainly made no sense to me when I started out many years ago and read some posts. So learning has deepened by recent initiatives last year. Application and interpretation may differ between people. In the end there's a huge difference seeing patterns and finally creating the ability to trade them as well. I personally don't use JHM for trading currently. I wouldn't pay/charge for such pointers either. The derived value will be from your own dedication and work. Doing the work builds facility, skills improve.

Just seeing the pattern is not that difficult. I've generally seen it, or parts, for years already.

Those interested may attach a chart of interest to you, including colored volume: 1) First a clean liquid chart, not too many bars, not too few. 2) Then manually draw a Zig Zag line through another chart copy, and provide that separate example as well. It doesn't have to be perfect, bar-bar or predictive. Should be manually made, so a draft version is OK as long as the graphics is clear and both includes price and volume. Then we can all observe if we see something of interest from these two charts. No worry about mistakes, just go forward. Doing the work yourself, sharing and caring is best.
 
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Simples,

JHM is based on statement 'if volume is increasing than trend will continue, if volume is declining than trend will change'. Everething is the consequence of this statement. Am I coorect? If not, please correct me.

Suppose above is correct. Is this statement true or false? According the observations this statement if false statistically. And it is no question false absolutely. So when somebody is speaking (seriously) about 'volume leads price' it is interesting to know what does it mean exactly, without dogmatic statements and lengthy and/or fuzzy reasoning.
 
kaizer said:
Simples,

JHM is based on statement 'if volume is increasing than trend will continue, if volume is declining than trend will change'. Everething is the consequence of this statement. Am I coorect? If not, please correct me.

Suppose above is correct. Is this statement true or false? According the observations this statement if false statistically. And it is no question false absolutely. So when somebody is speaking (seriously) about 'volume leads price' it is interesting to know what does it mean exactly, without dogmatic statements and lengthy and/or fuzzy reasoning.
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The answer is in The Pattern. If you are to grab just one thing from JHM in isolation, then let The Pattern be that one thing you taketh away. Then you may safely forget that statement altogether.

Now, in order to drive a car, is it best to read a whole library on car driving, or start driving the car?
 
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Now, in order to drive a car, is it best to read a whole library on car driving, or start driving the car?[/QUOTE]
its best to start with the coach who has independent break pedal :)

the pattern is descriptive and not predictive, right? no one can state than after the pattern is complete the trend will change? or (like aka spydertrader dogmated) the trend cannot change unless and until the pattern is not complete? both cases are false, price can do anything...
 
kaizer said:
Now, in order to drive a car, is it best to read a whole library on car driving, or start driving the car?
its best to start with the coach who has independent break pedal :)

the pattern is descriptive and not predictive, right? no one can state than after the pattern is complete the trend will change? or (like aka spydertrader dogmated) the trend cannot change unless and until the pattern is not complete? both cases are false, price can do anything...
More...

It's a thought provoker that only volume makes price. I'm not here to define concepts and others' approach though.
 
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