Using volume for trading signals is overrated. However, when determining what and when to trade, total volume of a market is a key factor. Markets are too easily manipulated when there is a lack of market participants and they will chop you up. Why else is lunchtime avoided? There is a reason they call it lunchtime chop. Much like summers, holidays, late afternoons...etc. Why? Because there are few market particpants and volume. Thus, the largest can push around the little guys. Not to mention other factors such as slippage blah blah.
Is volume overrated?...
- Thread starter focusonmoney
- Start date
I count ....
10 idiots
1 sitting on the fence
0 in favor of volume
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verdict: Typical ET. Burn the place down!
Top prize of course goes to Joe Paterno for taking certainty in stupidity to a new plateau.
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Now count me in as 1 in favor of volume
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I'd tell you more about Volume but it would be a fckin waste of time - so I'll just let you watch the weekly Dow Jones for the classic, supreme, el magnifico, creme de la creme S I G N A L that volume is giving - and way ahead of any crash just yet.
The topping pattern known as H&S requires a drying up of volume as the right shoulder is being formed. That is THE dead giveaway that something is amiss and one should expect major shit to go down once the neckline is busted!
Think about the entire rally from March 2009 on the daily chart - low, low volume, right. But it looks better on the weekly, although same story really.
God this place is loaded to the hilt with such high density individuals its fckin pathetic.
Quote from deadbroke:
I count ....
10 idiots
1 sitting on the fence
0 in favor of volume
----------------------------------
verdict: Typical ET. Burn the place down!
Top prize of course goes to Joe Paterno for taking certainty in stupidity to a new plateau.
-----------------------------------
Now count me in as 1 in favor of volume
----------------------------------
I'd tell you more about Volume but it would be a fckin waste of time - so I'll just let you watch the weekly Dow Jones for the classic, supreme, el magnifico, creme de la creme S I G N A L that volume is giving - and way ahead of any crash just yet.
The topping pattern known as H&S requires a drying up of volume as the right shoulder is being formed. That is THE dead giveaway that something is amiss and one should expect major shit to go down once the neckline is busted!
Think about the entire rally from March 2009 on the daily chart - low, low volume, right. But it looks better on the weekly, although same story really.
God this place is loaded to the hilt with such high density individuals its fckin pathetic.
Agreed!
I've been using the ignore feature like crazy for the past few months, and they still keep comnig out of the woodwork!:eek:
For the Unenlightened (and Great Unclean) like myself, could you explain the above statement in relation to the Head & Shoulders pattern, or point us in the direction of some further explanatory material?
(... which we'll do our very best to understand... although this effort may be quite beyond us ...)
I don't know if volume correlates with individual issues, but my perception it does not for the market nor indices.
How does volume leads price?