cae
I would like to throw in a few words about your chart.
Your chart falls short in one respect because it falls short of being useful because it lacks something and yet it is a useful chart because it stresses a valuable point that many have been falsely brainwashed with. Keep up the good work.
The chart you show has volume and volume only. The first question that entered my head was what possibly could a chart of volume only be used for? Volume itself has zero to do about the bottom line on the P/L statement for average retail futures traders. Volume alone shows the amount of activity and nothing more.
Think of it this way: A volume only chart could show a upward move during the morning and during midday show a sideways narrow range bound market and in the afternoon volume shows another upward move. That is a volume chart in general but what good is it?
A UP move in PRICE in the morning surely would show increased activity, a lull during midday is considered normal and ok, lets assume PRICE in afternoon continues on and adds to the morning PRICE increase with increased volume.
A DOWN move in PRICE in the morning surely would show increased activity, a lull during midday is considered normal and ok, lets assume PRICE in afternoon continues on and adds to the mornings PRICE decrease with increased volume.
The point of this is quite simple, volume is a reading of the players activity and has Zero forecasting value about where PRICES are going.
Now a chart with PRICE only tells you all you need to know, nothing else in needed to distract the what is between your ears. In my simple KISS trading framework volume is mox-nix as long as there is another playing taking the other side of my trades.
The myth about PRICE only has been proven once and for all by DA HOG. haha, just having fun . Good trading to us all, especially me.
