Volume Analysis

Hi,

There are at least three approaches of volume analysis:

a) Time-based volume --- cumulative volume within a fixed period of time
b) Volume profile --- volume by price
c) Volume by wave ---
As regards your chart example, there is no such thing as "up volume" or "down volume"; there is only volume. If one is using color-coding, the color depends on the relationship between a given bar and the previous bar. But volume, like price, is continuous, so a given bar represents only the number of trades for that interval. Whether the volume is on the demand side or the supply side will be reflected in the behavior of price.

Therefore, a "long" bar is due to a greater than average number of trades. If price goes up, demand had the upper hand. Color is irrelevant.

Yes, volume is just a volume. When we have volume = 100 it just mean that somebody bought 100 shares and somebody sold to him these 100 shares. just from volume we cannot state that there are more buyers or more sellers. However, together with price movement we can get some points. Volume during price move means that buyers are more greedy than sellers as they are ready to buy at higher price. Opposite is true for volume to the price down side. To do volume analysis you have to differentiate volume to the price up-side from volume to price down-side. Up-volume, bullish volume, positive volume is just a name. The question is what do you see behind it and how you interpret it.

By the way,
 
very little that is said about v/p is correct, and I have no immediate plans to enlighten anyone on the interweb for free


be grateful I've told you that most if not all of what you read is bs

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Hi,

There are at least three approaches of volume analysis:

a) Time-based volume --- cumulative volume within a fixed period of time
b) Volume profile --- volume by price
c) Volume by wave --- David Weis method

Has anyone applied c) to trading successfully ?

Any comments or suggestions would be appreciated.


You my find and download scan of David Weis book "Trading with Elliot Wave Principle" at
http://www.trading-software-collection.com/free download/
 
To do volume analysis you have to differentiate volume to the price up-side from volume to price down-side. Up-volume, bullish volume, positive volume is just a name. The question is what do you see behind it and how you interpret it.

If one has some reason to analyze volume, this is true. However, one must also address the question of what difference it makes. Money is made by the movement of price. Whether price is moving on light volume or heavy volume is not as important as whether or not it is moving.
 
Hi,

There are at least three approaches of volume analysis:

a) Time-based volume --- cumulative volume within a fixed period of time
b) Volume profile --- volume by price
c) Volume by wave --- David Weis method

Has anyone applied c) to trading successfully ?

Any comments or suggestions would be appreciated.

I don't know how far you want to go with volume, there is way more to it than the volume is just volume rubbish , i've sent you something to get you going, let me know if thats what your looking for..
 
I don't know how far you want to go with volume, there is way more to it than the volume is just volume rubbish , i've sent you something to get you going, let me know if thats what your looking for..

Speres,

You willing to share

If not - I completely understand..., if so - I would surely appreciate it

-------------------------

Never hurts to ask - no matter the answer


Thank You Sir

RN
 
What does a large institutional buyer do when the small fast speculators and technicians,who front ran
a report , and , were able to move price away from a liquidity area on light volume into an illiquid area?
Now the big player wants in.
 
What does a large institutional buyer do when the small fast speculators and technicians,who front ran
a report , and , were able to move price away from a liquidity area on light volume into an illiquid area?
Now the big player wants in.

Are you referring to Volume Profile ?

Attached is the volume profile of ES for the entire Globex session on Friday, November 14, 2014.

The price highlighted in pink was the VPOC. The red line indicated the location of the VWAP.

http://www.sierrachart.com/image.php?l=1416135229983.png
 
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