Quote from hawthtrader:
I've read over a fraction of the hundreds of pages of Jack's writings and he does talk about volume being a leading indicator that can somehow be used to time entry into a market. As I understand his writings Jack states that increasing volume suggests that an existing trend will continue (up or down) and a low or decreasing volume indicates an ending trend. What I struggle with are that (1) volume itself doesn't often seem to "trend" for more than a bar or two and (2) how much of a volume change is significant enough to make an entry decision on??
I do not make entries ordinarily. I do on the BO of bar 4 as it goes past the exteme of bar 3 ordinarily.
After that I am in the market with as many contracts as the market can bear without slippage and I am using volume to give me a leading indication of when to act.
Naturally, I observe and judge whether or not an action is called for or whether to continue to pile up more profits.
I do 20 to 40 actions a day to the combo of taking profits and getting on the other side of the market, simultaneously (this is a reversal type trade).
How close do I come to doing reversals at the right time? I do not care.
Why would I care? There is no reason to care because I always have recourse to correct a mistake at the first opportunity, the second opportunity or a later opportunity.
As a matter of practice I do take the first opportunity.
I do not deal with drawdowns or whipsaw or being on the wrong side of the maret and invoking what some traders call "HOPE".
I am very risk adverse so I demand of myselt to stay on the right side of the market and I take profits at the end of each segment of profit accumulation.
I use the variables of the market to collect sufficient data sets from which I draw conclusions, repeatedly and over and over.
I continue to do a routine of four parts over and over all day long. A person in their 20's or 30's today in modern times, cannot do this level o work or think in this way. It takes a while to be able to have the conditioning to be able to be a trader and be one that follows the markets and be one that makes money all day long.
I do it using sports memory as a professional athelete would do. They pay professionals to dribble balls and run arund corners better than others.
Trading is not competing and it is so hard that conditioning is required and ordinarily people cannot do that. They are not in condition to be able to do a routine.
Let say it takes 10,000 questions to get things straight to be able to perform. Lets say there are 100 word answers to those 10,000 questions. Make a note. I have posted over 10,000 answers of 100 words each as a side adjunct to trading.
This means that what you read is a result of trading as an expert in a manner like Lance Armstorng rides a bike.
Snarley cannot get started as yet. He cannot do as suggestd but he keeps trying to find a shortcut. Lance Armstrong for 7 years took not one shortcut. He gets on machines so scientists can find out what makes him a winner. It is not in their records of his sitting on the machine. Lance did the work and after he did the work to get over cancer.
Cancer is what most trades have and it is what 90% of them die from.
I am the type person who would walk the Tour de France course and takes notes. I did that for 50 years and took the notes. I get on my bike everyday and I ride for the 6 1/2 hours.
If I say volume leads price as Granville did, then volume leads price.
If I say if volume is rising, etc... then that is the way it is.....
I am a seasoned absolutely superb trader who is in the market all the time that price is changing because the principle is that when price is changing, then money is made.
I am always on the right side of the market because that is where the minority is for trading. When I see a turn in the road coming up I bike around that turn and take advantage of the turn at just the correct time to get the greatest advantage. You always have to be on the right side of the market at all times you are in the market.
That is the KISS of trading. BE IN the market and BE on the RIGHT side. The market tells you everything by volume leading price; price is what you use to make money with contracts. People are the volume; you front run the herd by reading volume which leads price.
QED.
