Is volume analysis useful in index futures?

[learner2007]

Markets make highs/lows on both high and low volume.... and ever measure between. Anything you think you get "exclusively" from volume, you should have already seen in price.

As I've said before, I'm a K.I.S.S. trader. Volume considerations merely muddy-up trade decisions.

That can be true for the index. But it would be a very rare exception for that to be true for index futures.
Volume can't be used exclusively, as you said.

You often use K.I.S.S. I think I once knew what that stood for. Would you please refresh my memory?

 

[maxinger]

Some of the traders use time based chart ie one candle is completely formed after say 5 mins.
And they might include volume bar below the price chart.

All my charts are volume based.
eg for ES , one candle is completely formed after 2000 contracts.
In that sense, volume analysis is included in my chart analysis.

 

[Scataphagos]

That can be true for the index. But it would be a very rare exception for that to be true for index futures.
Volume can't be used exclusively, as you said.

You often use K.I.S.S. I think I once knew what that stood for. Would you please refresh my memory?

Keep It Simple Stupid. It's my philosophy.. "If I can't explain the trade in 10 words or less, I've probably got it wrong." You know, Occam's razor kind of thing...

 

[Xela]

All my charts are volume based.

Mine also - I don't have volume shown separately below the chart, as some people do: I simply define the formation of the chart's bars according to numbers of contracts transacted.

In that sense, volume analysis is included in my chart analysis.

Indeed - exactly so.

I spent quite a lot of time looking at volume, and all the trading literature about volume, really from Wyckoff onward.

Unlike the "trading literature" on other aspects that I've studied, I didn't enjoy it.

My own feeling about volume, in general (though I can't substantiate this or offer realistic evidence for it, at all) is that for me, using constant-volume bars gives me probably about 75% of the available benefits of "using volume professionally" with about 1% of the extra work. Which suits me.

 

[maxinger]

Keep It Simple Stupid

I guess you are trying to say KISS

 

[learner2007]

Some of the traders use time based chart ie one candle is completely formed after say 5 mins.
And they might include volume bar below the price chart.

All my charts are volume based.
eg for ES , one candle is completely formed after 2000 contracts.
In that sense, volume analysis is included in my chart analysis.

Yes, and I think you will find a significant difference in how volume visibly varies among time based, constant range, constant tick etc. charts. What stands out on one may be flat on another.

 

[Scataphagos]

I guess you are trying to say KISS

No. KISS can be a noun or a verb... or the name of a rock band.

K.I.S.S. is none of those things.

I remember some sage guidance about trading... "Go over your work and simplify as much as you possibly can. Then, simplify again."

 

[learner2007]

Keep It Simple Stupid

Right! Now I remember. Thanks.

 

[Scataphagos]

I just mentioned stocks for the sake of it.

I think you did more than "mention" it... more like shouted it. But that's OK.

 

[learner2007]

I think you did more than "mention" it... more like shouted it. But that's OK.

Nah, didn't put it in italics.
I grew up in the time and place where manipulation was the name of the game. If you couldn't read charts, and the volume therein, you were out of the game in no time! Volume was available in time based charts only. There were no constant volume, constant range or constant tick charts in those days.