Let's play "teach IronFist how to use volume in his trading" (lots of pics)

Is volume histogram useful in your trading?

  • Yes - it is useful to help predict price action

    Votes: 57 60.6%

  • No - it's as useful as random distribution

    Votes: 37 39.4%
  • Total voters
    94
Quote from IronFist:

I see 3 really awesome trades in there, too. And a bunch of really crappy ones.

Are you saying that the 3 really awesome trades were identifiable from the bad ones before the fact?
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Yeah, they are.

And based on the volume indicator that your created, they're pretty obvious.
 
Quote from MandelbrotSet:

Yeah, they are.

And based on the volume indicator that your created, they're pretty obvious.
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I only see them after the fact. Maybe I need to study my own indicator some more :confused:

Tell me what you're seeing. I can post some more screenshots if you want.
 
Quote from bilbod:

Hi IF,

Your view of volume is too simplistic. If it were that simple, everybody would be rich.

The most valuable use of volume is in discerning what Smart Money (aka Market Makers, Floor Traders, the Floor, Strong Hands) are up to.

A frequently quoted statistic is that 90% of retail traders loose money. Where does that money go? It doesn't disappear into thin air. It flows into the pockets of the MM.

If you want to know how to use volume, study Richard Wyckoff's work and a modern off shoot called Volume Spread Analysis.

This is a non trivial topic and will require substantial time and effort to learn how to use it.

Bill
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What? There's nothing trivial about using volume as an indicator. You're making it way too complicated.
 
Quote from MandelbrotSet:

Yeah, they are.

And based on the volume indicator that your created, they're pretty obvious.
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Then why don't you write an entry rule from that chart that uses volume and share it with Ironfist?

The rule needs to show at least some positive return in backtesting. Short or long.

My challenge to you is that you can't.
 
Quote from lindq:

Then why don't you write an entry rule from that chart that uses volume and share it with Ironfist?

The rule needs to show at least some positive return in backtesting. Short or long.

My challenge to you is that you can't.
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What's that gonna prove? That he can't program?

Tell you what. You give him the software and the knowledge to code, and then make that request.
 
Just pay attention to price as it moves. Volume is after the fact, just like a basketball game where the points are added up "AFTER" the ball goes through the hoop, NOT before.

Things that are measurable are not important, most important things are not measurable.

Think real hard about that and ask yourself if volume was so important and so easily measured these days with computers how come the ratio of winners to losers has stood still?

Vendors will tell you a bunch of nonsense to sell their products. If they made money from actual trading they would not need to dip into your grocery money. Now would they?

ok, lets rock with Obama and Biden. Remember a vote for John is a vote to draft and waste the youth of our country. Like Sen Casey of PA just said.................4 more MONTHS, not 4 more years.

<a href="http://www.sweetim.com/s.asp?im=gen&ref=11" target="_blank"><img src="http://content.sweetim.com/sim/cpie/emoticons/0002013F.gif" border=0 ></a>

Gotta order a pizza for Hillary speech. Mrs Modest ....:p
 
Quote from nkhoi:

try study Bid vol vs Ask vol
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I have recently started watching market delta and have found it to be useful for guageing the power of the S/R tests. Will we bust through with sustained volume or will it be a failed break out. Still learning but like what I have seen with the Bid Vol X Ask Vol.
 
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