Is volume overrated?...

[Redneck]

Quote from deadbroke:

Extrapolating to the right would be easy to do, RN .... PRICE + volume, trendlines, even trendlines on volume, Joe Granville's volume vol indicator, etc., etc., I review them when necessary and yes, volume is very, very important and useful.

Well then by all means extrapolate it out using volume…


Pick the specific entry point, stop loss, and profit target – prices – based on volume of course…



Also be sure tell us how much volume will be associated with any bar/ candle – before it closes

Feel free to pick any bar(s)/ candle(s) you like – so long as it/ they have not yet painted on a chart



You have the mouth – let’s see if you have the ass to back it up


btw that thread I linked builds a good case on why volume is important


Your move

RN

 

[abattia]

Quote from deadbroke:

...

What do you get when you put 50 lesbians and 50 politicians in a room together?
100 people who don’t do dick...

LMHO again!


... and thanks also for the detailed explanation in response to my question.

 

[ksmetana]

I use both sentiment and technical analysis to make decisions. I don't think volume is worthless. Every day I see high volume create floors, and we rally afterwards. Every day I see high volume bars, followed by a rally.

Volume tells me where people are buying, where people are selling, it tells me where the big battles are. I need to know where fights are taking place, so that I know how to place my own entries / exits.
Volume can also tell you how strong news is, allowing you to get a feel for how news is currently shaping the market.

Personally, volume, adx, stochs tell me a good amount of information, information I'm willing to make bets on.

You have to cross-check it with sentiment. If we are having a low volume move up through days, with no positive news, no shift in sentiment, I see it as float. It only takes an hour to wipe off days of float. That being said, if you're a short term guy like me, you can't ignore float. If I'm seeing weak moves in a direction, so are other people. And that is the game. How afraid are they? Where are their stops? Are people playing tighter?

Choppy markets, obviously, make it more difficult to use any indicator.


That's my take

 

[deadbroke]

Quote from Redneck:

Well then by all means extrapolate it out using volume…


Pick the specific entry point, stop loss, and profit target – prices – based on volume of course…



Also be sure tell us how much volume will be associated with any bar/ candle – before it closes

Feel free to pick any bar(s)/ candle(s) you like – so long as it/ they have not yet painted on a chart



You have the mouth – let’s see if you have the ass to back it up


btw that thread I linked builds a good case on why volume is important


Your move

RN

This is tooooo easy. I'll just refer you to the two topmost books written on technical analysis - the first is John Murphy's and the 2nd is widely accepted as the BIBLE of TA. Its called Technical analysis of stock trends (9th edition) - why argue, just go to amazon.com and read the comments ...

TA bible

Volume comprises 70% of the Index on "V"

there is a NOTE in the Index ....

"Volume is of the utmost importance in ALL technical phenomena"

--------------------

now go read the chapters and look at all those charts soooo clearly showing AND STATED by the author how volume gave some awesome signs all thru' history.

Whew! What a place, this ET. The bullmarket in stupidity has never even seen a correction.

 

[ammo]

Quote from deadbroke:









but for me the maximum learning/pleasure comes from dispersing the HERD. And your reaction confirms this. [/B]

deadbroke,you're a contrarian, a fader,as common as mosquitoes,get over this before your rightious attitude hands you a margin call,define yourself and accentuate on your weaknesses because the market 's war is one sided in their favor

 

[chartman]

Quote from focusonmoney:

How does volume leads price?
--------------------------------------------------------------------------------

Quote from Charts:

Volume increases => Price will continue its direction
Volume decreases => Price will change its direction

Your directional equation is correct but one should wait until the reversal has occurred before trading. Volume follows price as price continues it direction volume will follow. Normally there will be a larger weekly volume at price directional changes. Most people will buy on an increasing price and volume increase and sell on a decreasing price and volume increase. You are getting in on the short movement. Always try to buy at the bottom and sell at the top unless you are a short seller. The bottom is where volume drys up after a large price decrease and the price is slowly increasing again. Use weekly price and volume charts to determine entry and exit points. Sell your position when volume decreases after a large price increase. Look to hold your position for a long term capital gain. You have to be nimble when selling because prices will fall faster than they rise due to not having a tax advantage holding a short position.

I know this is contrary to what a majority of traders do but that is why most traders lose. You cannot have a herd mentality and expect to be successful.

 

[businessstaxes]

higher price less demand economics 101 but in trading it's different..trading isn't real the real world you don't get short sqeezes in the real world. and you can't short in the real world.

Quote from focusonmoney:

Is volume overrated? What do. yall think? I have seen price trend down and up without volume... I don't use volume at all.. just price..

 

[JoePaterno]

Quote from deadbroke:

This is tooooo easy. I'll just refer you to the two topmost books written on technical analysis - the first is John Murphy's and the 2nd is widely accepted as the BIBLE of TA. Its called Technical analysis of stock trends (9th edition) - why argue, just go to amazon.com and read the comments ...

TA bible

Volume comprises 70% of the Index on "V"

there is a NOTE in the Index ....

"Volume is of the utmost importance in ALL technical phenomena"

--------------------

now go read the chapters and look at all those charts soooo clearly showing AND STATED by the author how volume gave some awesome signs all thru' history.

Whew! What a place, this ET. The bullmarket in stupidity has never even seen a correction.

This is truly one of your most clueless posts yet. Would you care to type in and see how those TA methods work in today's market????? Most of them have zero to little outperformance value. Put down your "101" books and learn how to trade

 

[Redneck]

Go read a book – figures…

Your response does not even address the question I asked


No worries DB – you go your way – I’ll go mine

Now post the Red Cross donation receipt… and pay Lucrum (he's good people)

Don’t worry I have no illusion you will


All mouth, no ass, lot of suck, and a welcher


And for the record I’m neither bullish or bearish – I am whatever price dictates


Say la vie
RN

Quote from deadbroke:

This is tooooo easy. I'll just refer you to the two topmost books written on technical analysis - the first is John Murphy's and the 2nd is widely accepted as the BIBLE of TA. Its called Technical analysis of stock trends (9th edition) - why argue, just go to amazon.com and read the comments ...

TA bible

Volume comprises 70% of the Index on "V"

there is a NOTE in the Index ....

"Volume is of the utmost importance in ALL technical phenomena"

--------------------

now go read the chapters and look at all those charts soooo clearly showing AND STATED by the author how volume gave some awesome signs all thru' history.

Whew! What a place, this ET. The bullmarket in stupidity has never even seen a correction.

 

[focusonmoney]

Quote from chartman:

Quote from focusonmoney:

How does volume leads price?
--------------------------------------------------------------------------------
Always try to buy at the bottom and sell at the top unless you are a short seller. The bottom is where volume drys up after a large price decrease and the price is slowly increasing again..

Buy bottoms and sell tops? Wow that sounds dangerous to me.. Tell me, how can I do this? Because this sounds more like a rookie strategy.. But let me know, I'm all ears...