Literary Classics and Trading

Quote from trader225:

“Nothing is mine, I know nothing, I possess nothing, I have learned nothing.”
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precisely, trader225, and step right up...you've just won a signed copy of "the japanese chart of charts."

also, of course, siddhartha learns of the worthlessness of gurus.
 
Quote from F.-M. Arouet:

Yes, I did, Tortoise. I hate people who are smarter than me. But, scratch a sadist and you find a masochist, so treat me gently.

(The para-diggem that we are going to demolish today concerns the nature of volume. Conventionally, and orthodoxly, haha, it is charted below price with black bars. Certain folks who think themselves clever change the volume bar color to green when the corresponding price bar closed above the open, and red for the opposite. This supposedly provides additional information.

Now these same deluded souls also think that volume is in some way doubled, or rectified, or running at twice the rate of price. (An antiquated or inferior mathematical and/or engineering education is a dangerous handicap in trading. Beware gurus who are old engineers, present company excepted.) Because as price increases, volume increases, and as price eases off volume decreases, until price falls so far that volume again increases. This causes volume charts to have the appearance of ripe breasts with distinctly erect nipples at price turning points, but they have another term for it.

These same fetishists, BTW, think that volume leads price, but that is a wholly harmless delusion, like believing in Santa Clause. These fetishists have some difficulty in interpreting their breast charts to determine when volume is waning from an upswing or swelling from a downswing. So they have elaborate code names for the patterns: green to green, green to red, red to red, red to green. If they had more colors, they would have more patterns.

Now I am going to give ET some time to think about this, to see if you can guess what my chart invention is.)
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Does it have something to do with
1) the direction of price change
2) the extent of price change
3) volume
 
Quote from trader225:

Does it have something to do with
1) the direction of price change
2) the extent of price change
3) volume
More...


trader225, please reread siddartha.
 
Tortoise, what have you got against me? I am old. I am better read than you, but I have forgotten most of it. I am bringing value to ET. I certainly have slept with more women than you have. Why is it that ET resents anyone who tries to improve the lot of the common trader? And I am still waiting for an explanation of how you match my feat of picking exact tops and bottoms. Perhaps we could form a trading partnership, the Tortoise and the Hare? I am getting so creaky and decrepit that I qualify for the latter role.
 
225, my faithful Sancho Panza! Or was that Pancho Sanza? Tortoise could tell us. The invention has solely to do with volume. It is a very sexy way to make those treasured volume nipples stand out.
 
Quote from F.-M. Arouet:

225, my faithful Sancho Panza! Or was that Pancho Sanza? Tortoise could tell us. The invention has solely to do with volume. It is a very sexy way to make those treasured volume nipples stand out.
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Oh, yeah! Gotta massage the data.
 
Assolutely! The market is just a worldwide inkblot. Now, given a choice of gurus, who ya gonna follow? The guy who sees math in the markets, or the guy who sees sex?

OK. Here's hint. ET is sooooo slow.

What is bar volume? The sum of all orders transacted during the bar period.

What are those orders? Market buys and sells.

So why do we code price-up volume bars green and price-down volume bars red? Because traders are a herd and demonstrably most volume during a bar is buys or sells. Trust me, I am the world's most accomplished tape reader. It's not little shits like you and me making that volume, it's mostly big prints.

So what's my invention? (Hahahaha! Rumpeltforeskin is my name! You will never guess! Haha!)
 
Could it have something to do with stalagmites or stalagtites. You can rememember which are which by, in the words of an anonymous National Park Service Guide, observing that "stalagmites" contains the word "mit" and stalagtites contains the word -- well, won't go there on a family board.
 
I have not fully decided. My volume interpretation codes are usually a coin toss. My day-to-day operating position is that you can't trade volume alone. Or price alone. Or both together. Something far more subtle is required. Which is emerging. If you will forgive another literary allusion, it is the nagual which reveals, not the tonal. The quantum, not the macro. And much as he tries to distance himself from the "conventional orthodoxy", my favorite ET poster is blindly rooted in it.

Edit: this post responded to a poster with second thoughts who deleted his post. The gist of the question was "Do you trade price or volume?"
 
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