Is volume analysis useful in index futures?

Discussion in 'Index Futures' started by Laissez Faire, Dec 22, 2017.

  1. Xela

    Xela


    What you actually said was: Not a matter of "for anyone". It's a matter of "is or isn't".

    Which was why I said that your premise seems to be that anyone whose experience leads them to a different belief-set from your own is, by definition, "just wrong" (and I'm still saying it, now - because that still seems to me to be your premise [​IMG] ).



    Not an argument I've actually adduced (and not a logical or reasonable one, in my opinion.)



    Fair enough ... I'll leave you to it, then. ;)
     
    #131     Dec 24, 2017
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  2. Nope. Just saying, "if you think volume is additive in helping you make better trading decisions, you haven't figured it out yet".

    So... here's a little helper for everybody...

    If you believe in volume analysis... when you're ready to make a trading decision, consider what you'd do without the volume consideration. Would it be different? Would it be right? Which turned out to be correct... price consideration alone or price + volume? (Don't just go on one or two examples... log 10-20 of them and then see what you think. That's how I came to the conclusion that "volume is useless at best, harmful at worst".)
     
    Last edited: Dec 24, 2017
    #132     Dec 24, 2017
  3. eurusdzn

    eurusdzn

    I dont communicate well. I'm just stating the obvious that volume analysis can , may, be more useful in , or at least draw you to stocks like XNET and WEED.TO
    It does not mean that SOXL isnt fantastic because it does not display similar volume characteristics.
    Clearly, trading any of these profitably is a seperate issue so in that regard it does not help.
     
    #133     Dec 24, 2017
  4. polaris

    polaris


    Ok buddy:cool:
     
    #134     Dec 24, 2017
  5. They

    They

    Laissez Faire originally asked,

    "Assuming that volume analysis of various kinds is useful in technical analysis - would a market like index futures be any different than other markets like for instance commodities? Or single stocks?"


    The answer is; yes and no or same same but different. Certain aspects of volume will be consistent across all markets and others will not. There is total volume, there is delta-bid/ask volume, there is the volume of larger traders, iceberged volume, hft volume, there is the speed of volume, there is the range created by the volume, the price level volume occurs, the time of day when it occurs - news or report generated, etc. It depends on how far down the rabbit hole you want or have resources to go.

    Scapathagos had a problem with Laissez Faire's assumption in the original question (is volume necessary to trade profitably?) and has ended up fueling a nice discussion on how others use volume. I think there are numerous traders like Scataphagos that do not use volume and are profitable just using price action. Other's like Xela swear by it. Then there are those who can trade an instrument without using its price action or volume. Everyone's trading style is different and thus anyone who lasts in this business ultimately settles into a certain style of trading and certain instruments that fit their style.

    Since Xela can't post her charts because of signing a NCNDA I'll post one using volume bars for her :)

    Instrument: NQ
    Bar Segment: 3000V
    Event Trigger: Speed Threshold of traded volume

    Each event occurred at a turning point in the market or low risk entry point.

    NQ Volume Speed.PNG

    Supply and demand is all there is, everything else is just a giver of confidence.

    They







     
    #135     Dec 24, 2017
    slugar and Xela like this.
  6. themickey

    themickey

    Certainly worth considering as a great idea. I will try this.
     
    #136     Dec 24, 2017
  7. polaris

    polaris


    The three points of reference that you highlight, can you confirm your own trading direction for each one? Are you selling on two occasions?
     
    #137     Dec 24, 2017
  8. They

    They

    Polaris,

    I'm just showing where an acceleration of volume occurred and marking the highs and lows of the price range that the volume created. How one would choose to trade that event would be more a question of one's individual trading style. The speed of the volume is the event, the range of the resultant bar and its location at that point in the trading day are secondary.

    They
     
    #138     Dec 24, 2017
    polaris likes this.
  9. polaris

    polaris


    Hi They.

    Thanks for the reply. I just thought it was strange to find more reason for sells in a raging bull market.


    Polaris.
     
    #139     Dec 24, 2017
  10. themickey

    themickey

    Looking at some charts to verify the theory, I think Scat makes a good point.
    Volume considerations may make you late to the party.
    I began my trading adventure many years ago as a firm volume believer, then I became a disbeliever, then I took it up again looking at it in a different light. What now? Will I become a disbeliever again?? :(:(:(
     
    #140     Dec 24, 2017