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

[ivanbaj]

Quote from VSAtrader1:

Volume Analysis is actually based on the Wyckoff Method. The theory behind Volume Spread Analysis is that volume leads price action -- not vice versa. I'm using Volume successfully in my trading around 17 years. With Volume Analysis, we can take an in-depth look at not only the current price bar but the previous price bars, as well as the open, close, high and low of the bar. In other words, when looking at the range of the bars, who had more control, buyers, sellers, or was the volume neutral. By using this method we can actually identify when the professional money is entering or exiting the market.

If you look the example from a trade I took yesterday, the volume indicator is showing there are more buyers than sellers in the market, so why would I take a short trade?

So in my opinion Volume is an important element in trading, which helps to indicate what is happening in the market.

Can you point where on the chart is the fact that there were more buyers then sellers before the price moved up? I see price bars going up and up and up and up. Obviously there were more buyers. I am missing the point on the chart that shows this before the price moved up.

If more sellers showed up at some point, then the price would have broken down and your volume will have shown that there were more sellers.

Are you saying that if the price is chopping you will be able to say from the volume analysis if there are more buyer or sellers. Can you show that situation?

 

[VSAtrader1]

When you look at the chart, on the right side you see the green line increasing (buyers are dominating the market), this is confirmed with the volume indicator below. Additionally the trend indicator is green, white back to green is a better entry.

Please Google Volume Spread Analysis for more information.

Good Trading

 

[jjf]

Quote from VSAtrader1:

When you look at the chart, on the right side you see the green line increasing (buyers are dominating the market), this is confirmed with the volume indicator below. Additionally the trend indicator is green, white back to green is a better entry.

Please Google Volume Spread Analysis for more information.

Good Trading

So you bought the breakout of a price pullback !!! as displayed by price.

I refer you to .......

"Reading this thread and it's exchanges between posters, has all the humor and sadness of watching two midgets wrestling.

I never know whether to laugh or cry or do both at the same time."

jjf

 

[jjf]

Quote from VSAtrader1:

Volume Analysis is actually based on the Wyckoff Method. The theory behind Volume Spread Analysis is that volume leads price action -- not vice versa.

I imagine that you also believe that the wheels need to turn before your car can start moving.

jjf

 

[shikantaza]

Quote from VSAtrader1:

By using this method we can actually identify when the professional money is entering or exiting the market.

What is this "professional money" everyone speaks of but few, if any, are capable of detecting?

If I detect this, can I become rich quickly so that I can go back to shikantaza?.

Do "professional money" ever lose or only win?

 

[aceofbase]

price and volume is all you need.

you can still just trade with price but why not use volume.

that is only two indicators.

volume indicates transactions

no volume it's thin air.

prop firml daytraders only trade stocks with minimum of 1 million shares preferably over 2 million or more a day or price above $10/share.

Quote from Buy1Sell2:

Volume analysis is to be discarded as it falls into the category of "too much information" as regards successful traders--Ishmael

 

[TraderZones]

Quote from VSAtrader1:

When you look at the chart, on the right side you see the green line increasing (buyers are dominating the market), this is confirmed with the volume indicator below. Additionally the trend indicator is green, white back to green is a better entry.

Please Google Volume Spread Analysis for more information.

Good Trading

sometimes, it is easy to see who the 95% are. You think one data point has any validity, and you assume that your interpretation is correct... plus a couple of other assumptions.

You need to lookup the difference between "opinion" and "fact"...

 

[ProfLogic]

Quote from TraderZones:

sometimes, it is easy to see who the 95% are. You think one data point has any validity, and you assume that your interpretation is correct... plus a couple of other assumptions.

You need to lookup the difference between "opinion" and "fact"...

Damn I can't wait till I get dropped on my head so I can be as smart as you.

 

[Equalizer]

Why is it that when I hear "FrothLogic" I think of the words "Pathological Liar, Fraud, Crook, BS artist..."? I wonder?

 

[ProfLogic]

Quote from Equalizer:

Why is it that when I hear "FrothLogic" I think of the words "Pathological Liar, Fraud, Crook, BS artist..."? I wonder?

Probably because it is easier to call someone those things than to validate it for yourself.
The ownership of this site could care less about harassment or libel so you can say what you want. Doesn't make it true.