Price + Volume + Nothing Else

L

larrybf

HI... I have been trading for quite some time and despite years of looking at every indicator under the sun , I have found that just studying price with volume to be the absolute best way for me to trade the markets. Am I alone in this new age trading world of indicators , quants, computers etc. or are there others out there who share my opinion and might possible want to form a simple chat room if we do indeed trade similar markets????......thanks in advance.........
 
I share your opinion, what markets are you trading?

If it's index futures there is already a chat room here on ET. Several of the regulars focus on P & V.
 
Years ago I used volume... even had a few custom indicators. However, at some point the correlation between price and volume seemed to disappear. So, I stopped watching it.

I have a friend who's a big volume buff and who does well... he's explained his interpretation of certain situations, and my response has generally been "WHAT"?

Seems swing highs and lows are made both on low and high volume. And, sometimes a volume spike means "X", and other times it means the opposite or nothing at all.

Seems every volume correlation is only good about half the time.. and the opposite of expected is equally good/bad.

Where can I go to find out if there really IS a correlation between P&V?
 
i totally agree, for the short term, it's all about price and volume, of course i also use moving averages and times and sales but price and volume is paramount for me
 
I agree, i may take a look at EMA and a volume indicator but thats it....one TA book i found extremley helpful was The Master Swing Trader.., i know many dont care for it , but he really made me looks deep at pattern cycles and his elusiveness is the way TA should be written JMO.
 
Quote from larrybf:

Am I alone in this new age trading world of indicators , quants, computers etc. or are there others out there who share my opinion
More...

Many share your thoughts with respect to Price and Volume. You can locate a current discussion here.

- Spydertrader
 
FWIW, I've found the exact same thing to be true. I've backtested and live-traded everything under the sun, and have never found a meaningful relationship between P&V. Definitely not to say that one does not exist, however.

Quote from gnome:

Years ago I used volume... even had a few custom indicators. However, at some point the correlation between price and volume seemed to disappear. So, I stopped watching it.

I have a friend who's a big volume buff and who does well... he's explained his interpretation of certain situations, and my response has generally been "WHAT"?

Seems swing highs and lows are made both on low and high volume. And, sometimes a volume spike means "X", and other times it means the opposite or nothing at all.

Seems every volume correlation is only good about half the time.. and the opposite of expected is equally good/bad.

Where can I go to find out if there really IS a correlation between P&V?
More...
 
Quote from TrueStory:

FWIW, I've found the exact same thing to be true. I've backtested and live-traded everything under the sun, and have never found a meaningful relationship between P&V. Definitely not to say that one does not exist, however.
More...

I've come to believe that those who swear by volume do so because lots of people tout it.... some with big names. However, looks like LOTS of creative interpretation is going on... and if that's the real story, then it's really not worth 2 dead flies.

I'm a believer in "KISS and trade the obvious".... Volume use is certainly not obvious.
 
Quote from gnome:

I'm a believer in "KISS and trade the obvious".... Volume use is certainly not obvious.
More...

what's "obvious" if not price move on strong volume?

serious question.

Thanks
 
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