Volume Analysis
- Thread starter melteye
- Start date
2nd tryâ¦
dbphoenix, I realize the number of buyers and sellers has to be the same and the buyers are demanding price concessions from sellers during down moves. The issue is: What is the relevance of different up and down volumes during identical price moves?
Ok, look at the attached 5 min ES chart for 1/23 and part of 1/26 and 1/22. The first sub graph in the form of a histogram is called Volume Ratio and derived from the upticks and downticks. Beneath it are two additional sub graphs, one with the 14 period CCI and the other with multiple stochastics for comparison purposes
Note that VR throughout the time period moves clearly in channels, shown by the dotted trend lines that turn well before the price channel as a whole turns. . Buy and sell signals are generated when the VR crosses the 0 line when preceded by divergence. Regular and reverse divergences of VR with respect to price ( a la Woodie) can be seen at multiple points. It is interesting to compare these with the corresponding divergences on the CCI again showing the earlier signals in some instances.
For instance at the buy signal marked with the blue arrow, the VR makes a HH peak and a HL valley with respect to the price. Note also the pronounced peak of the VR at 11:15 that is higher than the surrounding peaks a full price cycle before the price turns.
I have not shown a volume graph but VR is not the same as saying high volume precedes price changes.
dbphoenix, I realize the number of buyers and sellers has to be the same and the buyers are demanding price concessions from sellers during down moves. The issue is: What is the relevance of different up and down volumes during identical price moves?
Ok, look at the attached 5 min ES chart for 1/23 and part of 1/26 and 1/22. The first sub graph in the form of a histogram is called Volume Ratio and derived from the upticks and downticks. Beneath it are two additional sub graphs, one with the 14 period CCI and the other with multiple stochastics for comparison purposes
Note that VR throughout the time period moves clearly in channels, shown by the dotted trend lines that turn well before the price channel as a whole turns. . Buy and sell signals are generated when the VR crosses the 0 line when preceded by divergence. Regular and reverse divergences of VR with respect to price ( a la Woodie) can be seen at multiple points. It is interesting to compare these with the corresponding divergences on the CCI again showing the earlier signals in some instances.
For instance at the buy signal marked with the blue arrow, the VR makes a HH peak and a HL valley with respect to the price. Note also the pronounced peak of the VR at 11:15 that is higher than the surrounding peaks a full price cycle before the price turns.
I have not shown a volume graph but VR is not the same as saying high volume precedes price changes.
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I'm afraid I have no comment since I don't know what all your lines represent. As I've said several times since the beginning of the thread, I analyze volume by looking at price bars and volume bars. Nothing else. However, I'm sure there are others here who know what this is all about. (If not, there's always Jack.)
back to the subject..
Anyone tried combining market profile with volume by price?
VbP basically plots the accumulated volume horizontally at the correspondent price. Since market profile does the same for the accumulated time the market has traded at each price level a combination of the two could give a good visual of market activity.
Anyone tried combining market profile with volume by price?
VbP basically plots the accumulated volume horizontally at the correspondent price. Since market profile does the same for the accumulated time the market has traded at each price level a combination of the two could give a good visual of market activity.
As we speak, I will shortly be attaching a chart for today's action. Note the pronounced VR peak at around 10 am yesterday. This was preceded by a deep VR valley the previous day.
These sharp almost equal peaks and valleys occur both near the beginning and end of major up moves and down moves. I would consider the sharp up move at the beginning of a rally as smart money buying, the peak at the end the suckers coming in when the rally makes a last gasp for another high.
The VR peak of yesterday was higher than the on 2/02. At that time the rally failed at 1140. It is my prediction ( at a level of 1138) that this rally will break that resistance.
Ash
These sharp almost equal peaks and valleys occur both near the beginning and end of major up moves and down moves. I would consider the sharp up move at the beginning of a rally as smart money buying, the peak at the end the suckers coming in when the rally makes a last gasp for another high.
The VR peak of yesterday was higher than the on 2/02. At that time the rally failed at 1140. It is my prediction ( at a level of 1138) that this rally will break that resistance.
Ash