Just want to add that before I feel I can do this exercise, I need to understand volume better. Please see this thread: Click me.
Personally. I see that there is no end to learning new things, there are thousand and one way of presenting price and trade off it. We will always find new stuff that we would like to learn more, and there will be tons of materials out there that'll pull our attention away from the basic that jjrvat is trying to share here. I would hope that we just start with something. Appreciate jjrvat for this thread, it does change my perspective to trading.
IronFist, How is your trading, is it improving? Are you familiar with Klinger Oscillator? If case youâre not familiar with KO you may like to consider its application if volume navigation is important to you. The oscillator was intended to illustrate when price changes are confirmed by volume. The price is expected to follow the oscillator if divergence is present. The computation involves constructing a parameter called the 'Volume Force' which combines close, high, low, and volume into a single indicator which is then created as a fast exponential moving average of the Volume Force minus a slow exponential moving average of the Volume Force. The KO takes number of input parameters: the periods for the fast and slow moving averages, respectively. You may even have this indicator available in your library, but in case you do not, the following link will give you more info on how to construct it. http://groups.yahoo.com/group/saham/message/51841