Volume--- how to use it and WHY
- Thread starter marketsurfer
- Start date
Quote from Lucrum:
Did you have to say that?
Before long the anti volume crowd will descend on this statement like flies. Arguing semantics as if their very lives depended on "winning" the argument.
It's a real can of worms alright.
Let the 'crowd' chew on this. Price is incidental to the following factors.
1. 'Who' wants to do business.
2. How much business 'they' want to do.
3. 'Who' is willing to take 'thier' business on.
'Sentiment' has an 'order' or 'flow', this creates the cycle and the price.
Dackster.
Quote from AMT4SWA:
It will be a REALLY great day if in the future I would be able to get my hands on ALL volume traded for each pair......where I would have access to ALL the volume information on one or even a couple of exchanges (without any missing or hidden volume flow not reported to the one or several of these exchanges).
I'm not sure how useful that would be.
The FX market consists of a network of market makers. If a big order for EURUSD comes into one market maker. That market maker will shift their quote and also pass off their exposure to other market makers. The initial order creates maybe ten times it's size in total volume as the price change is propagated across the network. Also remember that while market makers are moving their EURUSD quote, they are also moving quotes in all other EUR and USD pairs to keep them in line. This also generates volume in those pairs. So you see that the majority of volume in FX is simply a manifestation of price movements. This is why when you compare volume at any venue with tick volume there is always a very high correlation.
Volume and Price are one and the same.
can't have one without the other.
Volume drives price and price attracts
volume. To disregard one for the other is
like cutting off your left hand because
you can grasp with your right.
can't have one without the other.
Volume drives price and price attracts
volume. To disregard one for the other is
like cutting off your left hand because
you can grasp with your right.
Here's the definitive post of the thread occurring on page 1. As you can see from the pages that have followed, there are too many ways to interpret volume and it is much too subjective to be a useful tool. Volume analysis is to be discarded since it has no significant value to the successful trader-- Ishmael
--let's not forget--price can move without volume.---
Bilge.
Quote from Buy1Sell2:
Please read the pages of this thread and you will see why volume analysis is "too much information" for the successful trader. Thank you for your time--Ishmael
For some traders just having a computer is "too much information".
Correctly using volume increases your success rate not deminishes it.
There is nothing subjective about laying out your charting using constant volume bars. You simply adjust the volume based on how you trade; Intraday, Swing or Position.
Quote from Buy1Sell2:
Here's the definitive post of the thread occurring on page 1. As you can see from the pages that follow, there are too many ways to interpret volume and it is much too subjective to be a useful tool. Volume analysis is to be discarded since it has no significant value to the successful trader-- Ishmael
Exactly! Very few people know how to use volume correctly. Taking a snapshot of volume covering 1 min bars, and then trying to form a coherent and useful application of this is ridiculous, to say the least.
Dackster.