A Price and Volume Curiosity

Discussion in 'Technical Analysis' started by Rahula Gautama, Jan 28, 2008.

  1. Helloing, gentle beings of ET! I am Rahula, the community trading co-co-ordinator at the Mumbai Chai Cafe and Trading Lean-To. Until recently, only days ago, we here had collectively together all of us been trading a simple index futures system taught by the lamentedly deceased guru the Honorable Edward Toppel. All of ET is knowing of him, yes? A very great man. In this system, if pricing is up, we buy. If pricing is down, we sell. If we not can be telling of the difference, we are taking a tea break.

    But we have of new become enarmored of your official ET system, the Seamless Continuing Trading. We are having numerious problems with it, not the leasting of which is that we are having no crayolas because our hungry children eat them, so we must use muddy fingers, but that is not the issuing of which we are speaking today. We have an interloper who sits on his haunches in the rain outside our lean-to. He claims to be a Buddhist mathematician, no respecter of authority save that of the glorious might of his maths, and he cackles and waves at us the attached spreading sheet of the today ES in the fiving minute format. Over and over he chants toothlessly, both thumbs plunged deeply into his belly button while his little fingers tickle his testicles, "There is no correlation twixt price and volume, tra-la!"

    Can you ET-lings be explaining this to us? Later we will be showing you an even more henretical plotting of pricing change and volume per pricing which is mostly disturbing.
  2. ehorn


    I am just a child so I can only relate to a child - but here are my recommendations:

    Step 1: Ration the next batch of crayolas (they are very valuable) and the children will have it figured out before they have eaten all of them.

    Step 2: Most mathematicians would rather be correct than rich, so advise the mathematician to focus on edges instead - it would appear that only children understand the relationship between price and volume (See step 1)

    Step 3: If the mathematician decides to take his fingers out of his belly button, and stop cackling and waving long enough - have him get in there with the kids and do some drills (See step 1). Who knows, he may make enough to buy some nice bridges, dentures, or implants.

    Best wishes to the Mumbai Chai Cafe and Trading Lean-To!
  3. Gentle Ehorn, we are translating your saying to Buddy the Buddha, and he is saying in responding, we are thinking: "If volume pushes price like our fat women push the plow in our sacred fields, how can there be tens of thousands of shares traded with no change in price?" This is not us speaking, we are thanking you for your teaching to us of the Seemingly Continuous Trading.
  4. ehorn


    Again, being but a child, I would ask Buddy to have 2 fat women stand face to face with each pushing her plow and he may find his answer.

    P.S. I have a cat named Buddy and he does similar things with his hands :)
  5. Go congoboy!!!
  6. timbo


    Good God, we don't need anything more disturbing at ET.
  7. ET-lings, are you not seeing? Even we jazzed on chai can wonder at tens of folds of differencing in voluming for the same-self price changing. And at ratios of five to one of price changing for the same voluming? This is clausality?
  8. Thanking you for your interest Timbo we are saving the mostly disturbing spreading sheet until ET has expained to us the curiousity of the posting gramscatter.
  9. Buddy the Buddha is saying to us something like the flowing: "Seemly Continuing Traders look at liars-out like the seven point seventy thousand car data points and deliriously fantasize a correlation between price and volume. All is illusion! Kill the Buddha if you meet him in the chatroom!"
  10. Most disturbing ....

    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1769153>

    - Spydertrader
    #10     Jan 28, 2008