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

[Xspurt]

Quote from Buy1Sell2:

When a trader starts using volume studies, they are crossing into the area of "why" analysis. Keep in mind , the "why" doesn't matter, it's the price that does.--Izzy

You started wrong.

Delete your confusing indicators and just concentrate on the only 2 things that matter - price and volume.

You have too much information to work with hence the thread title.

 

[Chart_Precocity]

Quote from MandelbrotSet:

we wouldn’t have anyone to show us how to use Crapped-Volume Bars and Price Physics to make … Crappy Calls! :eek:

P.S. It took you 15 years to develop your trading skills to this level?

LOL

I don't understand.
Why doyou need someone to explain contant volume bars to you? Do you not know what they are? I've used then for years in ensign and they are wonderful.

 

[gravitonium77]

Quote from Buy1Sell2:

Price and a few scant indicators will give you all the information that you need to trade successfully. The addition of subjective, irrelevant volume analysis is unnecessary. Volume and price have no definitive correlation to each other and volume analysis should be discarded. --Ishmael

This is one man's opinion. According to my statistical research in multiple time frames, I have found a very particular aspect of volume versus price which has an 85% (give or take a tad depending on the periodicity tested) correlation factor. The relationship to which I refer is very simple, but not obvious (unless of course you already know it )

Anything that highly correlated I find to be tremendously useful. So do most of the other traders I work with.

 

[Thunderdog]

Quote from gravitonium77:

...According to my statistical research in multiple time frames, I have found a very particular aspect of volume versus price which has an 85% (give or take a tad depending on the periodicity tested) correlation factor. The relationship to which I refer is very simple, but not obvious (unless of course you already know it )

Anything that highly correlated I find to be tremendously useful. So do most of the other traders I work with.

Does this mean that, all else being equal, you will not act on a setup if volume does not confirm it for you in some way or another?

 

[jjf]

Quote from gravitonium77:

I have found a very particular aspect of volume versus price which has an 85% (give or take a tad depending on the periodicity tested) correlation factor. The relationship to which I refer is very simple, but not obvious (unless of course you already know it )

Anything that highly correlated I find to be tremendously useful. So do most of the other traders I work with.

Good on you for isolating this correlation.
As you say, it is simple and easy to see once you have stumbled over it.

Your PM will be running red hot.

jjf

 

[MandelbrotSet]

Quote from Chart_Precocity:

I don't understand.
Why doyou need someone to explain contant volume bars to you? Do you not know what they are? I've used then for years in ensign and they are wonderful.

Glowing reviews from the low post shill are duly noted.

 

[jjf]

Quote from Thunderdog:

Does this mean that, all else being equal, you will not act on a setup if volume does not confirm it for you in some way or another?

I imagine he will say that volume must line up over the multiples before you pull the trigger.

Of course there are exceptions to this, but these will depend upon the skill of the Trader.

jjf

 

[jjf]

I should mention that 85% accuracy is easily the basis for 100 lot trading.
This will put gravitonium77 in the 10M per year club alongside AMT and Ken.

Now we have three on one thread.

jjf

 

[MandelbrotSet]

Quote from jjf:

I should mention that 85% accuracy is easily the basis for 100 lot trading.
This will put gravitonium77 in the 10M per year club alongside AMT and Ken.

Now we have three on one thread.

jjf

LOL

 

[Chart_Precocity]

Quote from MandelbrotSet:

Glowing reviews from the low post shill are duly noted.

So the number of posts in this opinion forum have a direct relationship to trading experience, correct? That is a truly amazing observation.
Yes I am a tool shill. Oh the shame of it all.