Interesting volume breakdown on your chart. When you refer to which volume is leading, are you referring to the aggregate of BBid/BAsk being hit during a bar? Or is the bi-color bar an aggregate of a faster timescale the bar is composed of?
How to read this VOLUME chart ?
- Thread starter etradeqeko
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Interesting volume breakdown on your chart. When you refer to which volume is leading, are you referring to the aggregate of BBid/BAsk being hit during a bar? Or is the bi-color bar an aggregate of a faster timescale the bar is composed of?
To address the last part of your post, in the methodology that @Simples and @tiddlywinks are referring to, I ‘ll use different languaging which distinguishes more detail.
All this is based on astute observation with an open mind and based on deduction, not induction.
There are only 25 unique forms a single 4-tick price bar can be.
When compared to a second price bar, there are 10 unique form combinations that exist.
The second bar in the ten cases of price can either have increasing or decreasing volume.
The form of a two bar Price combo gives permission to measure. What is measured in this paradigm is the corresponding volume bar.
Many volume bars are measured, many are not.
It’s the selective filtering of volume that decreases noise and increases signal.
By filtering, Volume presents a pattern. This pattern is defined by events and not time.
This pattern is primarily oriented left to right and not up/down.
The closest thing in CW that compares is pivot points and s/r. In CW, these are up/down orientations. An entirely distinct world comes into view when these concepts are translated to a left/right orientation. By doing so, an archetypal pattern comes into view.
The archetypal pattern exists in reality and can be observed. Any problems to the perception of this fact has everything to do with an individual’s perception even though one’s perception would indicate otherwise. This would be defined as a blind-spot. The reason for this is not the sensing part of perception, it’s the inference part. There is no inference by which to form an accurate perception. That is the function of drills - to build an inference point of reference based on work.
The pattern is fractal in nature and can be observed on all timescales and is symmetrical.
The pattern consists of 3 moves of price to 4 elements of volume. The 3 moves of price are Dominant -> non-Dominant -> Dominant. There are two elements of volume to the first Dominant move of price, after that it’s a one-to-one relationship in the progression of a trend until trend failure. At trend failure, a trend in the opposite direction is starting. As this trend fails, this reveals the cycle of market operation.
The archetypal pattern nests and has a faster pattern within as well as a slower pattern that contains it. The nesting and nested patterns are the same.
This archetypal pattern is defined by a sequence of events.
So price gives permission to measure volume. Measured volume gives a signal of the progression of trend. Volume leads price in this paradigm. Trades are made when volume events fit a defined catalogue of volume patterns that lead changes in price. At first lookup tables at used, until memorization is complete. It requires similar effort to memorize a 12x12 multiplication table.
Sometimes moves in price do have unusual volume attributed to them. That leads to the differentiation of the following; 2 Failsafes, the 4 types of trends and three types of turns (and all their permutations) that the market constantly cycles through in the process of continuous dual auction price discovery.
The comments mentioned above indicate why backtesting as it’s generally performed is fundamentally flawed. CW backtesting treats all volume bars the same when they are in fact not.
So in a way there is truth to the notion that price is the above all and be all. It’s just that volume is intimately intertwined with price and as two variables in an equation, one is the independent one.
In this paradigm, volume is the independent variable and price is the dependent variable even though on the surface it appears to be the opposite. Changes in price migrate, surges in volume can come out of nowhere.
Nowhere = now here.
Like the sun traveling across the sky,
it can be argued. Just like flat-earthers argue for the validity of their belief affected senses. This vs the progression of logical discernment that has developed over centuries of focused thought/observation by thinking minds paying it forward.
To change one’s perception, it’s necessary to progress through a finite set of drills designed to accentuate what most look over and discount.
Naturally this is the result of a simple choice. Every choice has a consequence. Everyone is currently living the consequences of their past choices and creating a trajectory into the future of their present choices.
If one is not receiving the benefits of what being in the market and on the right side of the market has to offer it’s simply making better choices.
The context for the above is in the notion of positioning oneself to receive the full offer of the market at any given time.
The realization of the above comes from the work of purposeful learning. There are no-shortcuts or one-liners that can encapsulate the system with any accuracy.
In fact, with exception, attempting to pre-maturely use bits and pieces without the understanding of where those pieces fit can be detrimental and can lead to false conclusions.
Blue is up trade volume, red is down trade volume. Not bid/ask at all.
When you refer to up/down, it sounds like you are referring to price direction and not increasing/decreasing volume.
Since they are on the same volume bar, what distinguishes where the interface is between the two colors?
Appears like both colors are being adding to in real-time.
Yes defined by TradeStation as follows:-
"UpVolume" is defined as the volume of all ticks where:
- the price is greater than the previous tick, or
- the price is the same as the previous tick, and that tick was counted as an uptick
- the price is less than the previous tick, or
- the price is the same as the previous tick, and that tick was counted as a downtick
%%
Like IB calender > more than their charts-used both.
Also prefer close to close charts ,for when i recorded prices; even though i record open price also.Most profitable swing/position use 6 month or 12 months worth of candles ........
Pretend you have 50 daily candles or 6 month of candles; biggest sell red volume is a double bottom. NOT a prediction.
Double bottom in a bull market,is like the letter ''W'' more or less; 6 month candle chart,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Good question E trader.
