Volume analysis is to be discarded as it is "too much information"

[Arthur Deco]

Let me try.

When the B-Team held its annual summer disunion last December Thunderdog wrote to me by ticker tape that he could see the Price Efficiency of Volume with both nostrils as he felt the screen sound like a neurotic lemon falling into my purple smell.

Try it yourself. It is NOT easy to write that way. That it can come naturally to someone is very distressing. I sincerely hope that it is not caused by compulsively and obsessively trying to make sense of the markets for many decades.

But IF you make sense of it you will defend your perception of it as brilliance to the death.

 

[ARealGannTrader]

Quote from Arthur Deco:

Let me try.

When the B-Team held its annual summer disunion last December Thunderdog wrote to me by ticker tape that he could see the Price Efficiency of Volume with both nostrils as he felt the screen sound like a neurotic lemon falling into my purple smell.

Try it yourself. It is NOT easy to write that way. That it can come naturally to someone is very distressing. I sincerely hope that it is not caused by compulsively and obsessively trying to make sense of the markets for many decades.

But IF you make sense of it you will defend your perception of it as brilliance to the death.

The only order a market can ever have is who what when where why and how.

Who-buyers and sellers
What-any market that has volume
when- any time that market is open
where-everywhere
why-it doesn't matter really
how-volume: price formations come secondary to volume. They form because of what volume does.

Wyckoff then and Hershey now espouses that volume is immutable.

Gann left a way to accurately measure how volume affects price.

All the other market techs tried to simplify life further by leaving indicators in their wake to make it more of a KISS situation.

All the annotating that Jack has is students do is to force them to focus on the bars as they form, to get inside of the market. Doing all that annotating is no different than the monks of Shao-Lin doing what may seem to b the strangest things to bring them closer to that which they seek.

Some will do the tasks until they become automatic, then the learning ends and the knowing begins.

Some will say, it's too stupid or too hard, and the learning continues without ever really knowing.

 

[TraderZones]

Quote from ARealGannTrader:

If u watch volume and it is peaking, something is going to happen. The trend is going to stall or reverse.

It MAY stall or reverse. Again, your assertions are opinion without proof

If u look at volume and it is in dry up. Something is going to happen, the trend is going to resume or reverse.

It MAY resume or reverse. And it may not.

Any tool is isolation is going to get u killed, and that includes price.

Any tool tested in isolation, that does not show its own serious outperfrmance, offers little value-add.

Combining multiple things without their own edges means the combination is unlikely to have real edges. That is why people are often "Fooled by Randomness."

There is mysticism ad there are trading methods with a quantifiable, provable edge, that is not based on opinion, belief or conjecture. Jack's continuous attempts to avoid being audited are one of the largest testimonies to the unreliability of volume based methods.

Snake oil salesmen use a pitch. Medical doctors use methods that are generally backed by a lot of science and medical double-blind studies.

 

[ARealGannTrader]

Quote from TraderZones:

Quote from ARealGannTrader:

If u watch volume and it is peaking, something is going to happen. The trend is going to stall or reverse.

It MAY stall or reverse. Again, your assertions are opinion without proof

If u look at volume and it is in dry up. Something is going to happen, the trend is going to resume or reverse.

It MAY resume or reverse. And it may not.

Any tool is isolation is going to get u killed, and that includes price.

Any tool tested in isolation, that does not show its own serious outperfrmance, offers little value-add.

Combining multiple things without their own edges means the combination is unlikely to have real edges. That is why people are often "Fooled by Randomness."

There is mysticism ad there are trading methods with a quantifiable, provable edge, that is not based on opinion, belief or conjecture. Jack's continuous attempts to avoid being audited are one of the largest testimonies to the unreliability of volume based methods.

Snake oil salesmen use a pitch. Medical doctors use methods that are generally backed by a lot of science and medical double-blind studies.

Well, if u think it's snake oil, that's okay too.

I read somewhere that there were Native-American tribes out in the American West that would give away these little yellow rocks, mainly because they were everywhere. They just could not c what ol' paleface was so exited about.

 

[UgoCerletti]

Quote from traderNik:

Ugo, as someone who has been around for a while, I just wanted to let you know that although the quality of posting has gone down a lot over the years, there still is some valuable information here, you just have to know whose posts to read.

-----------------

Trader Nik

I understand your comment and look forward to reading some of the more substantial posts.

Unfortunately as I post this fully a third of the threads on the home page proclaim that TraderZones and Ivanovich are pedophiles....What this has to do with trading is beyond me...and one wonders how the site owner can permit this....lol

Well I don't really have time for more than this, but I will look in from time to time.

Good luck trading
Cheers

 

[bighog]

The bottom line: there are still over 90% of traders that do not make it, even with 7 computers and 13 screens. Face it, this is a losers game where most will in FACT lose their butts.

Traders are like most soldiers. Soldiers in general are losers, i mean aside from 3 hots and a cot what is the sense of pretending you are joining to save the country? Traders are blinded by visions of easy money and when that does not happen they stubble through the garbage dumps seeking the answer, whatever it might be..............surely it is out there because 5% make a lot every year.

General Patton said in the movie: Let the other dumb bastard lose his life for his country.

In some movie about the Viet Nam war the General said to the other person: Do you see all those soldiers? Out of the whole bunch there will be one or two real heros, the rest are just fucking targets.

The news media constantly calls all soldiers "HEROS" that really frosts my ass because it degrades the real heros which are really quite few.

I joined the Army back in the day because then there was a draft, so either you joined at your convenience or they grabbed you at the worst time in your life. In trading, losers can walk away but many refuse to admit they made a huge mistake and slog on looking for the answer which they will never find.

Using volume to make money is in books readily available at Barnes and Noble, etc. Go to the same section where you will find books on getting laid, How to find chicks, How to score in a cathouse, Does size really matter? It is all there ..........on the same shelf.

HOG OUT!!!!

 

[Buy1Sell2]

My account balance changes up and down with price not volume. It can go down with too much volume however due to commissions. Volume analysis is only important to the brokerage house. It is unimportant and unnecessary to the successful trader.--Izzy

 

[SwineFlu]

Quote from MandelbrotSet:

LOL

"Crazy Ass Jack Hershey" just stopped by and ruined the argument for the volume works group.

Mandelbrotset Exposed

http://www.elitetrader.com/vb/showthread.php?s=&threadid=169607&perpage=6&pagenumber=7

 

[Buy1Sell2]

Traders who rely on volume analysis are typically obsessed with trying to find some way to be right all the time. Volume analysis is not the way to get there and they will become frustrated because there is no advantage at all to the trader who uses volume analysis. In fact, it is a detriment since it adds one more variable to be considered and will lead to analysis paralysis. What the volume trader should be doing is focusing on cutting losers quickly and letting winners ride. The individual who does that will not need to be right very often and will reap the best benefit. --Izzy

 

[Thunderdog]

Quote from Arthur Deco:

Let me try.

When the B-Team held its annual summer disunion last December Thunderdog wrote to me by ticker tape that he could see the Price Efficiency of Volume with both nostrils as he felt the screen sound like a neurotic lemon falling into my purple smell...

I remember it well. Those were the days, weren't they?