Thanks for the chart. How close are you getting your entry to the actual turn in ticks, by using the volume div?. Very interesting.
I've studied VSA and lots of wykoff's work and found it to be inconclusive. Volume should be used simply. High Volume at tops / bottoms = high probability climax. High Volume from low volume areas = high probability break outs. It really isn't that complicated. The problem is people's patients.
================= IrfiT; But thats the correct order; A] fundamentals[oil/stocks or real estate doesnt trend the SAME AS spy/es...], price, [C]volume. a]AND SOME COULD MAKE A CASE FOR NOT EVEN LOOKING ON FUND-AMENTALS; BUT STILL NOTE THE ORDER.[price before vol, thats why most of us put price on top of vol,we read top to bottom...................] b]One day[or candle] doesnt[does not, repeat not] mean much; takes 2 days or 2 years++..,,,,,,,.to make ''the bottom''. c] Only liars catch all the tops or bottoms; this bear rally may go higher, smaller buy volume makes sense- not many want to trade big yet in countertrend bear rally.And just like in 1929,30's'' big meddlers in marketplace''[GM,F private jet set may get gov aid/waste....] For the media to say the market went higher on probable GM waste/loan; is the most absurd thing i ever heard in my life-its a bear rally/overdue. 1929-1930's had plenty of bear rallys sincerely, murray TT
Humerus thread. Humerus because most of you guys are missing the detail that is needed to correctly read volume. Volume is the cardiograph of the market condition. A good heart doctor can identify an anomaly in a cardiograph and determine what ails the patients heart. You boys and gals are not ready to play operation yet! I think if you start trading the vampire hours overnight, it may help you start putting the pieces to the puzzle together. Trading the Chicago or New York hours is a lot more difficult to learn to read Volume. One of the key elements of correctly reading the volume is watching the closing prices on the bars. If you use Anekdoodles favorite trading method (pattern recognition) You will see a volume spike on most peeks and pullbacks. I said most! not all! What follows the event is of major importance. The first key to a top or bottom is a weak bar close on the volume spike. The next will be consolidation. The next event is of equal importance. What will happen to the volume when we break out? Can anyone of you guys or gals answer that? The devil is in the details and the details will drive you crazy in the beginning. Its what happens later that matters. You start getting use-to information overload and than there will be lots of eureka moments. Its called more screen time!
Not as good as "Undeclared Secrets...", but it's free: "Master the Markets" http://www.tradeguider.com/mtm_251058.pdf