1,476 charts? Tarnation! I'll tell you this: you and I trade very, very differently. How many positions do you normally have open at any one time? Ballpark.
Volume--- how to use it and WHY
- Thread starter marketsurfer
- Start date
Let's not forget this little nugget of wisdom. "Price can move without volume."
Priceless (if you pardon the pun).
Now, if a person has only one point of interest, one timeframe, then seemingly the price moves without volume, or on low volume. But, the analysis of volume does not concentrate on one TF only,....does it?
So, my question is this. Where has Buy1Sell2 gone wrong?
You've got it, he's not taking into consideration the other TFs.
What Buy1Sell2 sees as a 'move with no/low volume', is probably the mark-up/mark-down stage of a cycle. He just doesn't 'get it', does he?
Dackster.
yes sir!
Does volume drive price at an auction? Of cource it does!
Hit the bid with extraordinary volume and see what price does
Quote from killthesunshine:
yes sir!
Does volume drive price at an auction? Of cource it does!
Hit the bid with extraordinary volume and see what price does
Hahaha! Exactly.
Look at GM motors! Car sales down, volume down, price has to go so low it rips the ass out!
Volume leads price.
Dackster.
Here is an idea. If one of the "PA no Volume needed" traders can show a consistent results trading FOREX it will prove that volume is not important. Preferably results over 10 years or more. Can we find such a FOREX trader. Is there an old FOREX trader that is doing well?
On the other hand a market where volume is everything, maybe a thin stock, will have to show extreme prise moves when the volume hits. What if correlation is found between such a thin stock and an instrument that has much more volume? By observing the instrument with huge volume for an accumulation and getting a position in the thin instrument one can make big $$$ once the volume hits the fan. For sure in that case the volume will lead the price.
Just trying to think without my thinking cap on.
On the other hand a market where volume is everything, maybe a thin stock, will have to show extreme prise moves when the volume hits. What if correlation is found between such a thin stock and an instrument that has much more volume? By observing the instrument with huge volume for an accumulation and getting a position in the thin instrument one can make big $$$ once the volume hits the fan. For sure in that case the volume will lead the price.
Just trying to think without my thinking cap on.
but are they? where is your proof?
have you ever attended an auction? does price move meaninglessly?
Quote from killthesunshine:
Does volume drive price at an auction? Of cource it does!
Hit the bid with extraordinary volume and see what price does
Volume cannot move price because it is not a force, it is a byproduct of the forces of supply and demand.
When you hit the bid with a supply larger than what is available you have overwhelmed the demand at that price.
What happens is that your supply will push price down until there is enough demand available to match your supply.
It is at that point that volume is created.
Volume is the result. It's location is at a price where supply meets demand and vice versa.
I am not saying that the price moves meaninglessly. I am just asking what do you do when the price moves meaninglessly? Your volume (or delta or whatever) analysis says that the price should NOT be moving up or down, but it is. What do you do? The PA only guy does not have this problem.
P.S. One solution will be to add to the position. If you believe in your analysis then we should add more at the better price. It seems that the volume guys should also be proponents of scaling in when the price goes against the position as long as the volume picture has not changed.