Hi all
I've been testing VMA recently for day trading using it as an entry signal when volume crosses surpasses it combined with a movement in price. Results have been 50/50.. which is dissapointing since I thought above average volume acompanying a price movement would be a pretty decent confirmation.
The other problem I'm encountering is trade frequency since the "signal" triggers many times in a day for any given stock.
Should it be used as a contrarian indicator? Wait til strong volume (above MA) pushes price and then enter in the opposite direction?
Or should it be combined with something else? (I'm not a big fan on technical indicators for price..)
J
I've been testing VMA recently for day trading using it as an entry signal when volume crosses surpasses it combined with a movement in price. Results have been 50/50.. which is dissapointing since I thought above average volume acompanying a price movement would be a pretty decent confirmation.
The other problem I'm encountering is trade frequency since the "signal" triggers many times in a day for any given stock.
Should it be used as a contrarian indicator? Wait til strong volume (above MA) pushes price and then enter in the opposite direction?
Or should it be combined with something else? (I'm not a big fan on technical indicators for price..)
J