Price and Volume

[TradEStar]

If you can learn this..

http://www.linnsoft.com/tour/techind/vb.htm

..you will have volume all figured out. Intrabar and cumulative volume analysis is all you need to help with picking higher probability entry points off price only based signals.

For instance, I took only 3 Long trades in the ES yesterday (and 10 Short trades). All 3 Long trades where 2 point or greater winners based off the market delta analysis "allowing" me to go Long.

 

[Lamont_C]

Quote from TradEStar:

If you can learn this..

http://www.linnsoft.com/tour/techind/vb.htm

..you will have volume all figured out. Intrabar and cumulative volume analysis is all you need to help with picking higher probability entry points off price only based signals.

For instance, I took only 3 Long trades in the ES yesterday (and 10 Short trades). All 3 Long trades where 2 point or greater winners based off the market delta analysis "allowing" me to go Long.

However, if one were to combine an understanding of PV relationships with an understanding of support and resistance, there would have been no reason to go long at all. One short trade at the open and that's it.

LC

 

[chuck.ells]

Quote from Lamont_C:

You might also be interested in his book:

http://www.trade2win.com/boards/313957-post.html

There's also his thread on t2w:

http://www.trade2win.com/boards/pri...-volume-support-resistance-demand-supply.html

LC

Yeah, I've seen a number of reviews on the book, all good ones.

I've always wondered why that guy don't set up an account at a place like lulu.com, which is a POD (print on demand) site, for those who would prefer to have a print copy.

 

[TradEStar]

Quote from Lamont_C:

However, if one were to combine an understanding of PV relationships with an understanding of support and resistance, there would have been no reason to go long at all. One short trade at the open and that's it.

LC

I was already holding Short ES positions from before Friday..my post was talking about my intraday only trades.

Also, "One Short" out of the open is not a usual play intraday in the market, so I am willing throughout each day to take all trades that fit my criteria regardless of direction..Long or Short. Markets intraday like the ES trend about 18% of the time, so the sell and hold strategy is not something that I can depend on for DAILY profits from my intraday only trading.

 

[Spydertrader]

Quote from traderNik:

With the greatest respect to one of our ET mods, SCT seems to me to be about as far as you can get from the spirit of pure price/volume analysis, and simple is the last word I would use to describe it.

The Journal referred to in previous posts does not involve learning SCT. In fact, SCT represents a point in the learning process far removed from where the journey begins. SCT is a consequence of the learning process. If anything, the journal teaches a new trader a process for understanding the signals provided by the market itself.

Quote from traderNik:

Those charts you guys post up look like something out of Heavy Metal Meets The Matrix (I'm thinking of theose blue ones posted in your thread).

Take a look at a few different charts. The 'matrix' to which you refer represents nothing more than the current Price Trend. In real time, all these lines contain Price allowing the trader to 'see' what must come next. Only in hindsight, do these lines resemble a bowl of spaghetti. People leave the lines in place for educational and 'debriefing' purposes only.

Quote from traderNik:

The terminology alone would take you 6 months to figure out.

Second post of the linked Journal provides a glossary containing ten words. Hardly something requiring six months of study to "figure out."

Many posts within this current discussion provide excellent information. However, the time required to successfully learn to trade profitably differs among every trader. Before I recommended any book or Journal, I'd recommend an ET Search (upper right hand corner of this page) on the subject in order to see what nuggets of wisdom already existed. In such a fashion, the trader wanting information can discern for themselves which posts contain valuable information, and which do not.

Good Trading to you all.

- Spydertrader

 

[NihabaAshi]

Quote from ganesh6:

hi,

I always see that people saying that price and volume are
the most leading indicators.

Can someone please recommend a book to understand the
relationship between price and volume.

Thanks for any reply.

There are more in-depth threads at EliteTrader.com about Price & Volume than any book that has a few chapters on the topic.

http://www.elitetrader.com/vb/showthread.php?s=&threadid=29005

http://www.elitetrader.com/vb/showthread.php?s=&threadid=33766

In addition, once you completely understand (convert the info into use for specific strategies) Price & Volume along with profitably trading via such with real money...

You'll gradually learn about Price itself that you will naturally not need Volume itself.

It's a natural process many price action only traders go through...

Price & Volume -----> Price Only

This learning experience involves many years of actual trading and screen time.

In addition, use ET search function to find other info about Supply Demand Analysis.

http://www.elitetrader.com/vb/search.php?s=

Simply, there's enough info at ET itself to keep you busy for a few years.

Mark

 

[speculatus]

Quote from NihabaAshi:

You'll gradually learn about Price itself that you will naturally not need Volume itself.

It's a natural process many price action only traders go through...

Price & Volume -----> Price Only

Mark

I disagree. How many time have you seen the price going up on the light volume attracting more and more buyers, and then going down heavily because seller went back to work? Only price & volume together give you the full picture, and it's all on the tape.

I'd say volume has more importance over price since it shows commitment and urgency of buyer to accumulate the line of stock or a seller to get out of his position.

 

[NihabaAshi]

Quote from speculatus:

I disagree. How many time have you seen the price going up on the light volume attracting more and more buyers, and then going down heavily because seller went back to work? Only price & volume together give you the full picture, and it's all on the tape.

I'd say volume has more importance over price since it shows commitment and urgency of buyer to accumulate the line of stock or a seller to get out of his position.

There's nothing to disagree about.

Some traders use Price & Volume and some traders use Price Only just as effective.

Most of the traders I know that's been trading fulltime for more than 10 years are just Price Only traders (no indicators...no volume)...

Just price itself on charts.

Once again, nothing to disagree about.

You do what you want to do that works and others will do what they want to do that works.

I myself am a price action only trader (no indicators...no volume) although I didn't start out that way 20 years ago.

It takes awhile (a ton of screen time) to see the volume in the price without volume itself.

However, the thread starter seems like he's just starting with the topic of Price & Volume which is why I posted two specific links for him on trading via Price & Volume (not price only itself).

Mark

 

[Lamont_C]

Quote from speculatus:

I disagree. How many time have you seen the price going up on the light volume attracting more and more buyers, and then going down heavily because seller went back to work? Only price & volume together give you the full picture, and it's all on the tape.

I'd say volume has more importance over price since it shows commitment and urgency of buyer to accumulate the line of stock or a seller to get out of his position.

I agree. Volume provides clues to fakeouts, shakeouts, and the supply/demand balance. Those who use "price only" generally use something else in addition to price, e.g., candle patterns.

LC

 

[NihabaAshi]

Quote from Lamont_C:

I agree. Volume provides clues to fakeouts, shakeouts, and the supply/demand balance. Those who use "price only" generally use something else in addition to price, e.g., candle patterns.

LC

You can see all that in price itself regardless if a trader is using bar charts or candlestick charts.

Until then, its recommended you use Price & Volume until you're able or want to see all that in just price itself.

Nothing wrong with Price & Volume...

It works and if it didn't, I wouldn't have wasted my time in recommending the links I posted.

Just the same, Price all by itself works too and the material for such is scattered all over ET in comparison to the material for Price & Volume.

Yes, there are some traders that are price only traders (no volume...no indicators) that uses candlestick patterns as their primary trading tool.

Yet, there are other traders (like me) that are price action only traders (no volume...no indicators) that uses other tools as their primary methodology (ex. seasonals, s/r levels, pivots et cetera) and not volume nor candlestick patterns.

Many possibilities beyond volume and just as effective.

Mark