Is volume overrated?...
- Thread starter focusonmoney
- Start date
There are short squeezes in the real world.. Ever heard of a big company buying out a small/med size company? Ever heard of the government raising taxes? Ever heard of inflation? I could go on forever, but I think you get the point now..
I know.... I'm just hollerin' into the wind (sort of like trying to explain something to an Obama voter) but here goes....
1. For every variable you add to the trading decision, you make the conclusion less certain.... that includes volume. You can decide to trade when, "Volume Confirms (well, at least you think so), RSI is overbought/oversold/divergent... same for Stochastic or CCI... and then, there is Sentiment... and News"... ad nauseum. The more variables you include in the decision, the more likely some are going to be in conflict. Thus, the less certainty of any decision.
2. Let me challenge you to try an experiment.... keep track of "trading opportunities which include volume as a filter"... that is, "volume confirms your decision"... and keep track of trades where volume is not a consideration.
I'll bet you a Dollar to a Donut that you conclude "volume consideration hinders the capture of profits".
1. For every variable you add to the trading decision, you make the conclusion less certain.... that includes volume. You can decide to trade when, "Volume Confirms (well, at least you think so), RSI is overbought/oversold/divergent... same for Stochastic or CCI... and then, there is Sentiment... and News"... ad nauseum. The more variables you include in the decision, the more likely some are going to be in conflict. Thus, the less certainty of any decision.
2. Let me challenge you to try an experiment.... keep track of "trading opportunities which include volume as a filter"... that is, "volume confirms your decision"... and keep track of trades where volume is not a consideration.
I'll bet you a Dollar to a Donut that you conclude "volume consideration hinders the capture of profits".
.
This really doesn't tell us much.. How do you know its the top.. Are you talking about providing liquidity..? Because selling tops and buying bottoms is real risky unless you have the capital to average down.. Which is something that I don't like..
using trendlines, and market profile,applying this to djtransports ,nq,oex,and the spx,and up until the past months the eur/usd ,you can see where supp and res converge together,not so much with the currencies lately,here you can start with 1 lots and sell 1, add, add, reduce ,add ..if it stays around this area and doesn;t break thru,chances of a reversal are high,after practice with the converging areas and the 1 lots,you might become comfortable with the results,i think it's best suited for a contrarian,personality /trader
"there will be a larger weekly volume at price directional changes." from my previous posting. Eample is GE price/volume:
DATE HIGH LOW VOLUME
2009-04-27 12.85 11.78 92121000
2009-04-20 12.48 10.85 117902900
2009-04-13 12.73 11.14 170059200
2009-04-06 11.63 10.41 121347300
2009-03-30 11.17 9.78 134231800
2009-03-23 11.09 9.78 176636600
2009-03-16 11.35 9.26 223294900
2009-03-09 9.98 6.88 291274200
2009-03-02 8.3 5.87 445577800
2009-02-23 9.75 8.4 230673100
2009-02-17 11.2 8.98 177731000
2009-02-09 12.9 11.12 147096400
2009-02-02 12.03 10.66 156633600
2009-01-26 13.75 12.01 109945600
2009-01-20 14.09 11.87 186056200
2009-01-12 16.2 13.06 112935100
2009-01-05 17.24 15.72 65960800
2009-01-02 17.07 16.27 57112100
Pretty much every trading strategy I've come up with is predominantly influenced by volume, I cannot understand how anyone can trade without factoring in volume, for me it's the most important indicator there is, 2nd price.
I'd love to know what methods the guys who state volume is useless are using because it totally goes against everything I've learnt and I consider myself a decent trader now.
I'd love to know what methods the guys who state volume is useless are using because it totally goes against everything I've learnt and I consider myself a decent trader now.
Quote from JoePaterno:
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
Quote from deadbroke:
JoePaterno\right-clickl\send to\Turd Central\chain will be pulled shortly in feedback forum.
another cancer cut at the mesenteric artery.
No mercy will be shown henceforth.
when someone cannot answer the question, then the above response is typical.
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
Quote from deadbroke:
JoePaterno\right-clickl\send to\Turd Central\chain will be pulled shortly in feedback forum.
another cancer cut at the mesenteric artery.
No mercy will be shown henceforth.
when someone cannot answer the question, then the above response is typical.