Volume in the sense of buying and selling pressure, not volume in the sense of some static number. As for interpreting a chart, that's my point. A tick chart would probably come closest to what I'm talking about, but providing one in hindsight wouldn't do much good. The buying/selling pressure dynamic is tied up with support/resistance, and demand/supply. If you know where S/R are, you ought to be able to detect buying/selling pressure at those levels. If there isn't any, they aren't important levels. If they are important, there will be a lot of activity there. Knowing where the pressure is will tell you whether you ought to be long or short.
What is the world coming to when a "supreme being" can't mascarade as inept trader walking among the elite at ET? Seriously, what I was looking for was an explanation that even I could understand, from dbphoenix about the waves. Well db?
I'm going to find what I want to ask you to interpret about volume on ES today and post it as soon as I can.
The volume spiked up to about 10,000 when the ES returned to the low of the day and then went back up. What is the significance of this spike in volume at the low of the day and double bottom? What does it tell YOU? I can't see any?
The significance of the price move is that there was enough demand to push price back to the HOD, but I doubt that that's what you're asking. The volume bar itself only records how many shares/whatever are traded. It has no "meaning" in and of itself.
Our good buddy Db will be more than happy to tell you that "moving averages" are a MANIPULATION of price!
How is one supposed to understand this sentence? Maybe, go back to price bars after "market hours" and mark entry/exit points?
I couldn't attach any meaning to it either based on volume. But as it was going back up from that high volume bar, I was thinking: what is dbphoenix thinking? The market went back up because people saw it was the LOD and sometimes that makes the market go back up. Lots of luck trading off that logic! How did you analyze the volume to indicate the market would go back up? Just as many times it blows through the bottom. In fact in a lot of other commodities, the smart way to play it, is often when it sits on the low of the day(emphasize sits) is to not lift the short and watch it collapse! Why in this case did the ES return to the top in your opinion?
There's no way of knowing what the price is going to do. If buying a double bottom is a setup that you've tested and you like, then you buy it. If you don't see it as a low-risk/high-probability trade, then you don't. As to why the ES rose, there was sufficient demand to push it there. I have no idea why the demand was there. It's of no concern to me. Either it's a low-risk/high-probability trade or it isn't.