From this topic it sure doesn't show itself.
But I was full time starting in 96' anyway.
The myth of volume as a leading indicator of price direction...
- Thread starter HolyGrailSeeker
- Start date
But I was full time starting in 96' anyway.
Durn y’all gotta be old!
I could care less about the relationship between today's volume and tomorrow's range. I'm interested in current volume to today's expected range. And, this is a starting point - you can look at ETF volume. You can look at futures volume. You can look at the relationships between various leveraged ETFs and their volume. The serial correlation between volume and range on the daily time frame was a simple example for the sake of illustrating a point.
Again, I'm not sure what the point of this would be? I'm interested in premarket volume (of more than one instrument) and the minutes as one variable in determining the day type.
Old as dirt.
LOL ... but you are looking at the correlation of current volume to current range. The current range is always already known. That is why you need to look at the correlation of current volume to FUTURE range.
But hey, do ya thing bruh. If you like it, I love it.
Yes, there's a relationship. And if you dig deeper you will find that premarket and early pit session volume also correlate to the entire day's range. For example, a stock that trades 5x it's normal volume in premarket for the same time frame is probably going to trade several multiples of it's regular session volume as well. And yes - it'll probably have a much larger than average range for the session.
- I was just posting an example that would be simple to understand. These are all factors many professional, top earning traders take into consideration. Glad you love it.
- I was just posting an example that would be simple to understand. These are all factors many professional, top earning traders take into consideration. Glad you love it.
So, yellow dots must trump math, I guess.
Again, your initial general statement was, as you stated, easy for anyone to verify. Now your hypothesis has morphed into something that is easier for you to just support your theory, and show us the result, like you did earlier.
I'd love to see, as you showed earlier, a screenshot showing that premarket volume correlates to regular session range. Thanks.