Is volume analysis useful in index futures?

[tommcginnis]

...but the volume on-the-bubble is also helpful: take your DOM ladder and sum the contracts showing on the bid as against the ask: whichever side is higher gives you the real-time guess of the hedgers as to which side they think the market is turning. (There's your counter-intuitive market tell for the day.)

Cracks me up.

 

[Xela]

Not a matter of "for anyone". It's a matter of "is or isn't"

This is the exact point where we disagree. Your premise seems to be that anyone whose experience leads them to a different belief-set from your own is, by definition, "just wrong".

 

[polaris]

Between 03:00 and 09:00 you've put in a horizontal line at approx 2661, 'digestion' below and 'continuation' above.

This is also known as a cycle - accumulation, mark up, distribution, mark down.

One more thing, the term 'digestion'? The usual terminology is 'absorption'

https://www.thebalance.com/how-market-prices-move-through-buying-and-selling-1031049

 

[Scataphagos]

This is the exact point where we disagree. Your premise seems to be that anyone whose experience leads them to a different belief-set from your own is, by definition, "just wrong".

Nope. That's not what I said at all.

I say, "volume considerations are at best coincident... at worst, encourages erroneous trading decisions.".

The way YOU use volume (as a "bar filler"... a substitute for time) doesn't apply to this discussion. I get it that "you use volumetric bars, you're successful, therefore volume is worthwhile... but this thread is not about how you use volume.

The conventional wisdom on volume... "after considering price info, some factoring-in of volume is beneficial in making a decision as to buy/sell/hold." I say it correctly is not.

 

[eurusdzn]

Net volume at consolidation price is low and time spent at consolidation price is relatively short .
This is good.

 

[Scataphagos]

Net volume at consolidation price is low and time spent at consolidation price is relatively short .
This is good.

If relevant, you'd get the same info from price alone (whatever "net volume" is?).

 

[lcranston]

One more thing, the term 'digestion'? The usual terminology is 'absorption'

https://www.thebalance.com/how-market-prices-move-through-buying-and-selling-1031049

"Absorption" does apply to the ability of buyers to absorb supply and sellers to absorb demand, but it also applies to the dynamics of accumulation and distribution. But this thread isn't about any of that so I used "digestion" in order to avoid getting into a lengthy explanation of something that may be of no interest. One could also use the term "ranging".

 

[eurusdzn]

If relevant, you'd get the same info from price alone (whatever "net volume" is?).

I meant a market profile view of Volume at Price ......more typical is the Time at Price profile.
I will come up with a chart example and post it.

 

[Scataphagos]

I meant a market profile view of Volume at Price ......more typical is the Time at Price profile.
I will come up with a chart example and post it.

If you're talking about "high volume at certain prices in the profile", I understand what that means. If I get your meaning, it is also irrelevant.

 

[Scataphagos]

Arguing trading is like arguing religion. (Good idea to avoid both)

I hear a lot of gum flapping, but I don't see any proof or examples....