My quote was not editied. LOL
Price/Volume Relationship
- Thread starter bluedemon77
- Start date
My quote was not editied. LOL
If you could trade half as well as you claim, you'd probably be a billionaire running a hedge fund instead of playing pied piper on the internet. The only real performance measure of your prowess that I'm aware of is a trading contest in which you finished dead last at -24%.
http://groups.google.com/group/misc...=jack+hershey+software&hl=en#88dcc788355b6a42
http://groups.google.com/group/misc...=jack+hershey+software&hl=en#88dcc788355b6a42
YOU quoted my post in your post so it could not have been edited, as you claim, unless you did it but since its an exact copy of my post it obviously was not edited. Therefore you have your posts mixed up. Go back and read your response to me, Skippy's response to your post and your response to Skippy, in order, if it is still not clear.
Because Dow never organized his thoughts into a book.
http://stockcharts.com/education/MarketAnalysis/dowtheory1.html
Constant volume bars are not superior. The problem with constant volume bars is that: all the bars have constant volume.
There is no way to determine the activity on one bar with the previous bar or any other bar as the volume remains the same. Time helps but it is not sufficient for seeing where the Smart Money is. Or more precisely, what the Smart Money is doing.The following chart is of the Euro today after the Jobs report.
While there is a CCI 6 on top of the chart, it is not used in analyzing the market. ONLY PRICE AND VOLUME is used. BTW, for those interested, this template is based on the template from Tradingmentor (.net). I am in no way recommending the course however. Joel Pozen does do an impressive job of reading price/volume in real time during the demo. The skills can be learned through Tom's book Master the Markets and some screen time. Tradeguider free webinars are also a major help.
Anyway. let's take a look at the Euro.
1. Black arrows point to the bar and corresponding volume at 0830. Notice how price jumps up on a wide range with high volume, closes above the "pivot"-white dashed line, and closes off the high. VSA teaches that markets do not like wide spread bars on high or ultra high volume that close up. Why? Because there could be hidden selling in the bar.
2. Next bar is a classic sign of Professional activity. The bar is wide spread with ultra high volume that closes in the middle of its range. If this bar represented buying, then the close should not be in the middle of the range, it should be on the high. Hence we see Supply (selling) being dumped on the market at this bar. The previous bar too had some selling. Note that the bar closes just above R1.
3. Next bar makes a higher high, but closes near its low on even higher volume. Professional money is selling into this bar. Some would call this a "buying bar" because it has a higher high than the previous bar and a lower or equal low. But in truth, supply (Selling) is swamping demand (buying) on this bar.
4. Check out the bar one back from the bar with the red arrow. This is a narrow range bar with volume less than the previous two bars and it closes in its upper range. The bar also closes up from the previous day. The lack of volume as price rises shows that there is no Professional desire to take prices higher. The narrow range tells us that the market makers are keeping the range small as they expect price to fall. They also see large sell orders on the books from the Smart Money. Retail traders looking to get long, think they are getting a good price. NOT.
5. This is an Up-thrust. The range is greater than the previous bar, it makes a higher high, closes on or near its low, and the volume is less than the previous two bars. The Smart Money marks price up to suck in some late longs, and then price ends near its low. Note how the high moves price above R1. On the close of this bar, with signs of supply in the background, a short entry is taken.
If volume remains constant from bar to bar, there is no way to determine the true intentions of the Professional traders. Reading a chart means looking at least three dimensions: Volume, Price (close), and Spread (range). The fourth would be the open, but Tom Williams doesn't look at it. His one-time student Joel does. Joel also studied under Richard Ney.
WAKE UP.
KP- I appreciate the education, really.
"Wake Up". Cut me a little slack would you, I just started reading about this 2 weeks ago.
I have been checking out the webinars on tradeguider, although the one Gavin did about a week didn't impress me. He says he doesn't day trade, but conducts a demo on day trading the e-mini S an P, huh?
While he kept saying not to buy I pulled 4 points on the move down. :eek: That was not luck but a method of reading price action that I have been studying for the last few weeks.
I posted this elsewhere, so pardon if it's redundant. A fellow trader I know that has been trading about 20 years, and has spend over 100k on seminars and software said that now he only watches price and volume. That says alot to me.
"Wake Up". Cut me a little slack would you, I just started reading about this 2 weeks ago.
I have been checking out the webinars on tradeguider, although the one Gavin did about a week didn't impress me. He says he doesn't day trade, but conducts a demo on day trading the e-mini S an P, huh?
While he kept saying not to buy I pulled 4 points on the move down. :eek: That was not luck but a method of reading price action that I have been studying for the last few weeks.
I posted this elsewhere, so pardon if it's redundant. A fellow trader I know that has been trading about 20 years, and has spend over 100k on seminars and software said that now he only watches price and volume. That says alot to me.