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

[Zodiac4u]

Quote from daveb351:

Not as good as "Undeclared Secrets...", but it's free: "Master the Markets"

http://www.tradeguider.com/mtm_251058.pdf

Thank you, But I have never needed to read other peoples research. I guess that's why its taken me more years to learn. But that's just a me thing.

 

[rc5781]

me like volume (1 min on the ES)

 

[murray t turtle]

Quote from Zodiac4u:

I think if you start trading the vampire hours overnight, it may help you start putting the pieces to the puzzle together.
Trading the Chicago or New York hours is a lot more difficult to learn to read Volume.

One of the key elements of correctly reading the volume is watching the closing prices on the bars. If you use Anekdoodles favorite trading method (pattern recognition) You will see a volume spike on most peeks and pullbacks. I said most! not all! What follows the event is of major importance. The first key to a top or bottom is a weak bar close on the volume spike. The next will be consolidation. The next event is of equal importance. What will happen to the volume when we break out? Can anyone of you guys or gals answer that?

You start getting use-to information overload and than there will be lots of eureka moments. Its called more screen time!

=================
Helpful points,Z4;
not sure you meant to say ''volume spike on most peaks AND PULLBACKS''

Even on 20 day average volume, havent really noticed volume spikes on pull backs....But still overall helpful.

And sounds like you are talking irregular hours, on derivaties;
volume may be more helpful on those ;
than high volume stocks[NY, NasdaQQQ....]
or low volume real estate[not much volume on re required for good profit]

Some overlap & unity for sure;
but stocks & their players differ from derivatives much,
& real estate volume differs much from the 2 above...................

 

[Zodiac4u]

Quote from murray t turtle:

=================
Helpful points,Z4;
not sure you meant to say ''volume spike on most peaks AND PULLBACKS''

Even on 20 day average volume, havent really noticed volume spikes on pull backs....But still overall helpful.

And sounds like you are talking irregular hours, on derivaties;
volume may be more helpful on those ;
than high volume stocks[NY, NasdaQQQ....]
or low volume real estate[not much volume on re required for good profit]

Some overlap & unity for sure;
but stocks & their players differ from derivatives much,
& real estate volume differs much from the 2 above...................

sorry about my grammar and spelling and yes that is what I meant. In the past I have always been challenged by the difficulty of reading volume for directional purposes. But not anymore. off hours is the training ground for learning how volume works. Volume and closing prises is key for most fade entries. I am not a stock guy I really cant confirm the other without witnessing it first hand. But I have worked with my wife on her investments and technical analysis is still the same. Thus that being said I would think that it applies to stocks as well because with most turning points you will see high volume spikes! The term High volume spikes is a relative statement. what makes it high is what follows the spike. If you get a higher volume spike with a weak close followed by consolidation with weak volume you have a top or a base. If you are a pivot guy and the the pattern is at a resistance point than the chances are that its a top and we will look for a pullback. The examples I am giving are derived from a 1min chart for day trading purposes only!

 

[fearless9]

Quote from Zodiac4u:

Humerus thread. Humerus because most of you guys are missing the detail that is needed to correctly read volume. Volume is the cardiograph of the market condition. A good heart doctor can identify an anomaly in a cardiograph and determine what ails the patients heart. You boys and gals are not ready to play operation yet! I think if you start trading the vampire hours overnight, it may help you start putting the pieces to the puzzle together.
Trading the Chicago or New York hours is a lot more difficult to learn to read Volume.
One of the key elements of correctly reading the volume is watching the closing prices on the bars. If you use Anekdoodles favorite trading method (pattern recognition) You will see a volume spike on most peeks and pullbacks. I said most! not all! What follows the event is of major importance. The first key to a top or bottom is a weak bar close on the volume spike. The next will be consolidation. The next event is of equal importance. What will happen to the volume when we break out? Can anyone of you guys or gals answer that?

The devil is in the details and the details will drive you crazy in the beginning. Its what happens later that matters. You start getting use-to information overload and than there will be lots of eureka moments. Its called more screen time!

From your comments, I gather that you haven't started trading with real money yet Z4

regards
f9

 

[Zodiac4u]

Quote from fearless9:

From your comments, I gather that you haven't started trading with real money yet Z4

regards
f9

Your a funny guy! I can tell Santa hasn't been good to you and I can understand why. But If your not a believer than that's your problem not mine.

 

[fearless9]

Quote from Zodiac4u:

Your a funny guy! I can tell Santa hasn't been good to you and I can understand why. But If your not a believer than that's your problem not mine.

Z4

It is not about me, it is all about you.
You are obviously above noobie level and you seem to have put in some hard yards to gain a working knowledge of volume.

Good on you ... keep going, because you are on the right path .... you need to push on through this level and gain a clearer understanding of volume and where it stands in relationship to price.

regards
f9

 

[ML_QUANT]

Quote from Joab:

..........Volume should be used simply.........

Finally, someone got it right...