Sorry for hijacking your thread with the SCT discussion. None of the TA books I have read have a lot of specific studies of price as it relates to volume (maye surprisingly). I hope you find what you're looking for.
Price and Volume
- Thread starter ganesh6
- Start date
Sorry for hijacking your thread with the SCT discussion. None of the TA books I have read have a lot of specific studies of price as it relates to volume (maye surprisingly). I hope you find what you're looking for.
no book, but lots of different posts about trading stocks on PV patterns here:
http://www.tradeforgain.com/category/trades/
and here:
http://www.tradeforgain.com/category/lessons/page/2/
all about supply and demand..
It's not difficult to prove.
Just go out and find a bunch of traders that's been trading as price action only traders (no indicators).
Ask them what they use besides just Price itself.
* Some will say volume.
* Others will say s/r levels.
* Some may say pivots.
* Others may say candlesticks
* Some may say a combo of the above
* Others may say Price and nothing else
Next, segregate these traders into the length of years they've been trading.
My research via the number of fulltime traders I know personally besides my own personal experience as a fulltime trader...
I notice the young guys or new traders with less than 5 years of fulltime experience trading as price action only traders...
Are using volume.
Nothing wrong with that because Price & Volume is a great place to start just as all the other things I mentioned above.
However, in contrast, those with more years as traders tend to rely on Price itself and nothing else.
Once again, not difficult to prove especially when other traders that's been at it for a very long time have experience the same thing I see among my personal trading pals.
Simply, the longer we are at and profitable...
The more we become in tuned with price itself.
As for the higher level of trading comment...
It means a few things (not only one thing).
The longer we are in the business of trading as fulltime traders and profitable...
We become more efficient and develop a better understanding of edges that maintain the profit level...
Edges that often have absolutely nothing to do with entry signals and has more to do with what's occurring outside of our trading instrument...
Stuff that really causes changes in supply/demand.
Lots of discussions at ET about the above last few paragraphs.
Once again, not difficult to prove especially when you've been at it for more than 10 years as a fulltime trader via relating your own personal experience with the personal experiences of others in the business just as long.
You can see the volume in price without actual volume. To do that requires many years of screen time.
Mark
You are hired to manage a multimillion dollar fund. How would you, a price & volume trader, tackle this debacle when this fund make up most of the volume created? 
First, price alone is not price "and".
Second, research based on whom you know personally is unlikely to apply much beyond the group from which your sample is drawn. If you want to do so, you're going to have to come up with something much more rigorous than anecdotal observations.
"Higher level"? In your opinnion, perhaps, but not necessarily in the world. Those who say volume is not necessary most likely don't understand it or how to use it.
LC
Can you answer my Question LC? You seem to know much about volume or think you do...
First, I said volume was necessary for those starting out (beginning) as price action traders.
Just wanted to make that clear because you stated...
Those who say volume is not necessary most likely don't understand it or how to use it
Can be easily taken a different way as if I had said that it was never needed even though I'm sure that wasn't your intentions.
It's very useful...no debates.
However, after many years of trading, I have a stronger understanding of Price itself and I no longer need volume and my trading has improved...
Not because I gradually stopped using volume...mainly because I've developed a stronger understanding of Price itself.
I also stated that when a trader gains more years under his belt (usually beyond 10 years)...
Traders tend to better understand price and tend to shed the other stuff that I mentioned.
Just wanted to make sure you aren't confused about the above statements.
As for my sample group...
It's very good and a network of traders that has never not represented what's occurring among retail traders and professional traders.
Further, if someone at ET were to do another poll (there's been one already done before) about how many years someone has been a price action only trader compared to Price & Volume trader...
I'm sure it will produce similar like results as my sample group involving retail and professionals I personally know and a past poll at ET participated by ET members.
That is my world and the opinion of many others in it besides my own based upon personal experiences.
Just wanted to make sure you understand my world (sample group) isn't just a few traders.
Simply, if you are a profitable trader...
As the years go by...you begin to understand price better and better with each passing year...
Tools of the past are no longer needed or used less often in comparison to today mainly because we've adapted to a market that's forever changing.
Eventually you get to the point where you are trading via price alone on your charts without anything else.
My trading has evolved as such and I've seen such occur in many other traders that have endured just as long as I have along with knowing where we all started from...
Price & Volume -----> Price All By Itself
It's not a bad thing...its a good thing and its a change you shouldn't be scarded about...don't fear it.
Thus, don't get your britches all bundle up and 5 - 10 years from now we can have a conversation about Price itself.
I'll be confident we'll both understand each other regardless to the differences in the Price Only Methodolgy.
You can see volume in price without actual volume. To do that requires many years of screen time.
Therefore, until you get to that point, I strongly recommend you continue using volume (it's useful).
P.S. ET poll in my reference was created back during the dbphoenix era.
Mark
If I was trading volume, I would use it. But my Broker only lets me trade the price. 
The End. lol
The End. lol