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

[ARealGannTrader]

Quote from jjf:

Please give examples of absolute indicators

jjf

Any indicator that uses an absolute value rather a percentage based value.

For example, a popular but controversial fellow here at ET suggests using an absolute indicator(MACD) with a relative indicator(Stochastics) to get signals.

If u want to use indicators properly, u now have the keys to the kingdom. Use an absolute indicator with a relative indicator. Do this, and the number winning systems u can come with is almost hilarious.

Now, put volume with ur combination. U have an absolute indicator along with a relative indicator that measures momo and the volume which will measure sentiment.

Get it?

Trend(MA), strength of trend(pick momo of choice), sentiment(volume), what else do u require?

 

[Xspurt]

Quote from Thunderdog:

The implication being that YOU don't need money management since you spent the requisite 2 years in volume college?

Oh you're being silly again. Absolutely not so. Oh that life were so short and simple. You see implications everywhere and draw false conclusions that don't exist. Now if you were able to see relationships...

Well, I have nothing more to add so this ends my posts in this thread.

To those who learned something - enjoy.

To those who know better - keep resisting.

To B1S2 - the vote is continuing against you

 

[jim c]

Volume works. Do some research on PEAD (post earings annoncement drift). Then instead of using the earnings announcement as the "event". Use a large volume day as the "event". if aapl is up >3% on the day and volume is greater than ....say the last 100 days. The buy the stock and hold for x # of days. Do the opposite if aapl in down 3% on the day. Play around with it. I was suprised at the results. Or just continue to argue with complete strangers on the net. Jim

 

[Thunderdog]

Quote from Xspurt:

...You see implications everywhere and draw false conclusions that don't exist...

Don't you just hate when that happens?

 

[Redneck]

Quote from jjf:

"absolute"

So you can't tell if your mythical P&L is + or -ve.

Were you borne stupid or did you train for it.

jjf

Just to shut you up….

And Note – I normally do not swing trade in my day trading account – but for you, today I made an exception and went on a recon mission


Stock = LVS (How appropriate – I chose this one for a couple of reason – read on and we shall see why….)


THE TRADE SET UP
Friday (on a daily chart) saw a gap down in price, with significant volume – which I interpreted as exhaustion / capitulation by the longs

Today (on an intra-day chart) – PA @ the $10.00 level played a very key role

If you wish – you can also add in the 20 EMA (daily or intraday 5 min chart) and take a look – or not….. doesn’t really matter



THE TRADE
So what action did I take with this information

I entered an initial long @ 13:57:11 EST (August 03, 2009) with 1K shares
Price per share on initial entry = $9.9599
Then proceeded to scaled in long – a few K more shares – over the remaining afternoon

I am anticipating a gap up tomorrow – but as we all know – it’s just a bet – one of many

As tomorrow unfolds I will play it accordingly – it will ultimately win or lose – I don’t know and I don’t care…

I will exit at least 1K shares tomorrow (specific time – my choice)


Reason 1 for LVS – In keeping with B1S1’s theme – I used volume and price to set up this trade




THE BET
Now since in your mind my P&L is mythical, and by default – you are also pegging me a liar – here’s the deal

I propose a bet (wager) of $5000.00 US Dollars between you and I – I say this trade exists; and my P&L is real.

Reason 2 for LVS – A bet on Las Vegas Sands – how appropriate

So….

If my P&L is mythical (I am lying, and can not prove it) – You win.
If my P&L is real (I prove it with broker statements) – I win.


THE TERMS OF THE BET
What I’ve stated above is 100% factual …..

I am currently long LVS, and have been since 13:57:11EST today August 03, 2009

I will post the initial 1K share – entry time, position, and per share price – via a printout of my broker’s statement – and it will completely match what I posted above 100%

I will post the same information (via a print out of my broker’s statement) for an exit tomorrow August 04, 2009 – of at least 1K shares

I will have either a profit or lose – hence a real P&L (not a mythical one as you purport)


DISTRIBUTION OF WINNINGS
I win the bet – you send the money ($5,000.00 US Dollars) to Saint Jude’s Children’s Hospital, by COB Friday August 07, 2009, AND post a receipt from Saint Jude’s here to confirm

You win the bet – I overnight via FedEx a certified cashier’s check to you in the amount of $5,000.00 US Dollars by COB Friday August 07, 2009

THE GAUNLET – YOU LAID IT – I AM GAME
Now put up or shut up Sir
And the next time you want to bring a trader to task – you damn well better have your facts straight – especially if you call their integrity into question…

You can disagree with me all day long if you wish, you can call me an idiot, stupid, or anything else you like – but never – ever question my integrity.

Btw – I just looked at the last T&S print @ 19:59 PM EST – price printed $10.19 – That would put me up over $2K (Let’s see – that would be the “P” in P&L – I do believe)


THE BACKUP PLAN
Sir – should you – for whatever reason – “conveniently” miss the opportunity to accept this bet (meaning you unfortunately miss this post and/ or was unable to respond in the time allotted) – I will be more than happy to set up another one – to be sure


THE OUT – OR NOT – YOUR CHOICE
Now if you want to drop it – then let’s do so – no harm no foul – life goes on… But like I stated – never call my integrity into question again – unless you have the proof to substantiate it

Otherwise game on….
You have until 5:00 AM CST/ 6:00 AM EST tomorrow morning, August 04, 2009 – to accept this bet

And please no crap about “Well you’ll post made up / falsified statements” – I have neither the time, inclination, or need to do so – it is what it is



TO EVERYONE ELSE
I would respectfully ask you to please forgive my arrogant and egotistical post… This is the first, and last – time I post such utter nonsense.

And please know – when all is said and done – I’m still just a dumbass trader…., But also know I will always do my dead level best to keep it real.


Humbly and respectfully

RN

 

[teasinggtara]

Well now jjf, looks like your guru status is on trial now lol.

You gonna be like Jack and squirm out or show backbone and back up your smarmy comments?

Can't wait for this one heehee. RN just called your bluff

 

[Redneck]

jjf

It is 7:37 AM EST


I will extend the time to accept my bet to 8:00 AM EST - Then I must get ready for work

I await your response


BTW - T&S Prints currently showing $10.04 - maybe today I lose on this one - That would be the "L" in P&L - I do believe

But no matter


RN

 

[jjf]

Quote from Redneck trader:

jjf

It is 7:37 AM EST

I will extend the time to accept my bet to 8:00 AM EST - Then I must get ready for work

I await your response
BTW - T&S Prints currently showing $10.04 - maybe today I lose on this one - That would be the "L" in P&L - I do believe
But no matter
RN

Gee you are an excitable little username.

I know this is a very obvious question, but I feel that it needs to be asked anyway.

Why do you feel the need to tell me "Then I must get ready for work"

jjf is only another username not a care giver.

jjf

 

[ivanbaj]

Volume is important if used right. Many times we use a tool in a bizarre way. We may think it does not work well, but why not consider that we are not using it correctly.

Never the less drop any tool that does not help you.

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=2527487">

 

[Redneck]

Quote from jjf:

Gee you are an excitable little username.

I know this is a very obvious question, but I feel that it needs to be asked anyway.

Why do you feel the need to tell me "Then I must get ready for work"

jjf is only another username not a care giver.

jjf

Is it a bet or not