Volume/price relationship question

[tiddlywinks]

Seems like its irrelevant to most of daytrading

The relationship is valid in context of/with the TREND. Trend is an entirely different topic btw.

1) Trends have beginnings, middles, and ends. Trends also nest.
2) Trend can be different/opposite on different timeframes.
3) Trend has support and resistance, or if using channels, dynamic upper/lower boundaries.
4) increasing volume will represent the dominant direction. Decreasing volume will represent the non-dominant, also known as retrace. Continuation or reversal occurs during and/or after a volume trough.

Many people on ET, I would say most, think as you do... volume is irrelevant to day trading.
I am NOT one of them. Volume analysis is extensive in my trading.
I daytrade futures exclusively.

Good Trading to All!

 

[mute9003]

Alot of stocks do that i dont have a specific example
just from watching many stocks
I read books and videos telling me to watch volume for price change and then when i watch it makes no sense

 

[VSTscalper]

If you are trading Individual Stocks - yes - Float is important. However - with Futures - such as the S&P 500 - with 500 Individual Stocks - Float really is NOT a problem. Again - look at what I said earlier about - Price - Volume - and Open Interest.

 

[SunTrader]

Alot of stocks do that i dont have a specific example
just from watching many stocks
I read books and videos telling me to watch volume for price change and then when i watch it makes no sense

I use this technique - even intraday:

http://wealthv.com/articles/PDFs/Relative volume analysis.pdf

 

[easymon1]

i dont have a specific example

If you are actually interested in resolving your quandry why not post up one of those examples that stump you enough to post a thread on the topic when a plethora of threads already exist on this exact particular topic?

C'mon man, show some commitment to the question, lol.

Example please. It ain't askin too much.

An example please?
What are you trading?

 

[maxinger]

You already know such a thing happened before.
So it will happen again.
So why can't you accept these facts?


If you try to reason things out,
you are going to miss many trading opportunities.

 

[Scataphagos]

Im having a bit of hard time understanding this

Why does sometimes price move alot on low volume
And other times price moves very little on alot of volume
cant make sense of it for some reason

EXACTLY! There is no legitimate correlation of price and volume when it comes to trades. Suggest you FUGGETABOUTIT when it comes to including volume in trading decisions. And even if there were an apparent correlation, volume would be lagging.

It's not "price and volume" when it comes to trading. It's PRICE... PERIOD!

 

[murray t turtle]

Alot of stocks do that i dont have a specific example
just from watching many stocks
I read books and videos telling me to watch volume for price change and then when i watch it makes no sense

%%
I see what you mean;
volume is such a secondary indicator, i sure dont believe every thing i read even in books or even charts charts , especially volume.
Specific example, Monday SPY + SH.........volume = most likely down from FRI; but that means little or nothing+ say price close$ down
NOT a prediction + for sure\ not a volume prediction.
IF those 2 volumes close up from FRI\i'm still bearsh\200dma
I do look @ Black Kow Brand cow fertilizer/LOL 50pound bag volume + 50 day moving average

 

[easymon1]

Im having a bit of hard time understanding this

Why does sometimes price move alot on low volume
And other times price moves very little on alot of volume
cant make sense of it for some reason

I posted your statement to an answerman.
His response follows?
AttoCEL
easymon1 said:
qqqqqqq
"Volume/price relationship question
Im having a bit of hard time understanding this

Why does sometimes price move alot on low volume
And other times price moves very little on alot of volume
cant make sense of it for some reason "
https://www.elitetrader.com/et/threads/free-in-thread-mentorship.366603/page-6#post-5584768
aaaaaaa
"Great question. I will say this, how often is the range low on high volume.. its all about sequence and frequency. Laziness prevents us from collecting the stats that lead to mastery."

ccccccc
Hmmm, where have I heard that rules based stats angle before... give me some time, I'm sure it will come to me...

 

[mute9003]

That entire thread is big bois flexing on noobs with cryptic replies.
Im sure they are full of great info except nooba dont understand any of it which makes the entire thing almost useless
Because by the time noobs understand that they dont need help already
Whwn helping nooba you gotta make it simple
I read through that post and its just flex after flex
Its great that he is taking time to help
But its like giving disassembled gun to a monkey so it can defend itsself