Volume analysis is to be discarded as it is "too much information"
- Thread starter Buy1Sell2
- Start date
Quote from Buy1Sell2:
Can't be done. There are too many reasons that volume could be up, down or stay the same. I will stick with my mathematical indicators that are based on the real number, --price.
I guess that your constant comments to people to "prove to themselves" that something either works or doesn't is simply that, comments.
Math and it's equation outcomes are only reliable in constant environments and your charting, like a majority of this field's charting is anything but a constant.
I completely understand that what you do works for you but that isn't saying that it is the "be all end all" to methods or strategies.
Great Trading to you and kudos on your ES thread.
I have and quantum mechanics which is the branch of physics that deals with the study of particles to the extent of atomic and sub-atomic level has nothing to do with natural cyclic price oscillations.
Price doesn't need to be over analyzed to the atomic level since it isn't traded at those levels. Quantum mechanics, though having revolutionized the study of physics adds nothing to ones ability to read real-time natural cyclic price oscillations.
You could apply quantum mechanics to cooking an egg too but if it was a requirement to understand the physical correlation of the heating effect on the egg at an atomic level you would starve before comprehending why you were looking in that direction in the first place.
The closest you could get is quantum wave theory and that is exactly what I am talking about and how my charts are structured but applied inside a rigid fixed environment. The problem with applying a quantum mechanical definition to what I do is that Einstein proved that the rules of quantum mechanics work for subatomic particles, they do not apply to larger formations like what exists in the markets.
Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius - and a lot of courage - to move in the opposite direction.
(Albert Einstein)
Simplicity is the ultimate sophistication.
(Leonardo da Vinci)
Now go ahead, it's your turn to puff out your chest again because I know you are far smarter than Einstein or Planck.
Total Volume has lots of noise and is not terribly reliable as an indication of future market direction, what counts is what the trading programs are doing and how their trading volume is related to arbitrage between futures, options, and the underlying equities.
Seperating the underlying trend in program trading is difficult and I have seen only one firm doing it reasonably well. Take a look at www.programetrics.com where they offer this type of analysis on both the equities and the derivatives side of the equation. The analysis is offered in real-time and I haven't seen anything comparable available elsewhere.
Seperating the underlying trend in program trading is difficult and I have seen only one firm doing it reasonably well. Take a look at www.programetrics.com where they offer this type of analysis on both the equities and the derivatives side of the equation. The analysis is offered in real-time and I haven't seen anything comparable available elsewhere.
Quote from Tradesall:
Straight from Wikipedia.. you absolute tool
Below is the Wikipedia definition.
Nothing even close to my post. Typical.
From Wikipedia, the free encyclopedia
Quantum mechanics (QM) is a set of principles describing physical reality at the subatomic level of matter (molecules and atoms) and the subatomic (electrons, protons, and even smaller particles). These descriptions include the simultaneous wave-like and particle-like behavior of both matter and radiation ("waveâparticle duality"). In addition, QM states that one can never predict with certainty the state of these particles, such as their location or velocity. This law is called the Heisenberg's Uncertainty Principle, a major concept in QM.
Certain systems, however, do exhibit quantum mechanical effects on a larger scale; superfluidity (the frictionless flow of a liquid at temperatures near absolute zero) is one well-known example. Quantum theory also provides accurate descriptions for many previously unexplained phenomena such as black body radiation and the stability of electron orbits. It has also given insight into the workings of many different biological systems, including smell receptors and protein structures.[1]
Even so, classical physics often can be a good approximation to results otherwise obtained by quantum physics, typically in circumstances with large numbers of particles (some questions remain open, however, in the field of quantum chaos).
When you separate volume out of the equation and treat it independently, you are adding to the chaos of the trading environment, I agree.
When you separate volume out of the equation and treat it independently where you need to interpret it, you are adding to the chaos of the trading environment, I agree.
There are alternatives to separation of information. The information can be merged with instrument price to give an individual a clear view of real-time price movement.
Quote from Buy1Sell2:
And when it doesn't line up and you watch the train leave the station, then what? Adding volume analysis results in having subjective variables in the equation.
My approach to trading is to wait for several independent variables to line up before making a trade. Volume is one of those independent variables. I believe that volume is objective, not subjective. If one or two out of five variables line up, I don't take the trade, even though "the train may be leaving the station" and I miss it. If more variables line up, there is no guarantee of success, just a higher probability. I agree with you that a lot of volume information is just noise, but there are a number of very clear VSA signals that can confirm the likely direction of the market with a high probability of success when combined with price action, trend, etc.
LOL
The only time you posted live calls you screwed up and moved your stop under your Swineflu alias ...
Funny how you spend the whole trading day talking about your perfect charts ... but won't call a live trade using them!
Nah, like the Professional Troll you are, you just want to play Monday Morning Quaterback! :eek:
Please continue stalking my live calls and sending me PMs about them, I love it!
Quote from MandelbrotSet:
LOL
The only time you posted live calls you screwed up and moved your stop under your Swineflu alias ...
Funny how you spend the whole trading day talking about your perfect charts ... but won't call a live trade using them!
Nah, like the Professional Troll you are, you just want to play Monday Morning Quaterback! :eek:
Please continue stalking my live calls and sending me PMs about them, I love it!
Do not even think people care about your constant loosing calls. You are the laughing stock of the ES Journal.
I send you PM's to extract out of you exactly what you are doing now . . . whining and flaming.
You've been played and made.
I've been following the ES thread for 3 years. Your calls simply make for good comedy.
Hey start a thread and I will do live calls with you, heads up in the thread with you for a week starting September 7th. If you can take the embarrassment, I can sure dish out the pain. Considering your continuing of selling bottoms and buying tops this should be a blast . . . what say you?
OK, now is your turn to start back peddling, flaming, lying and bringing our your 12 other aliases to divert attention from your total inability to trade against anyone with real money. Or trade at all for that matter.