Sorry about the deletion, FM. These boards are new to me and it's so easy to push the wrong button. For the benefit of the readership, my question was essentially, "Do you ignore volume?" Profuse apologies to everyone.
FM, you mentioned rectification. Wikipedia's article about a rectifier has nice pics for those of us with reading impairments and/or an inability to visualize techical matters. Anyway, I am curious whether you have ever considered doing "full-wave" rectification on volume.
Then I guess I must revise my answer. I am a tit man, so no, I love volume, perky or pendulous. But just for the hell of it for a few days I traded volume alone. Doesn't work, IMO.
I may be getting beyond my capabilities here, but would volume bars that reflected the balance of money flow be more useful? If more trades occurred at the ask, it's an up bar. If more trades occurred at the bid, it's a down bar. Surely I am no genius, so this must have occurred to someone else? And would it be useful to consider the size of the trades at bid/ask?
Oh, my! You ARE new here. Please go here: http://www.elitetrader.com/vb/showthread.php?threadid=83604 and read everything. Then you will fully understand this thread. Sorry. It's an inside joke. A long running one. Trying to penetrate the thick-headedness of that crowd is my life's work. But the two ideas I presented her DO have their uses, IMO, so not a total waste of time. Thank you all for participating. To say any more I would have to reveal what I REALLY do.
ok, ok. i give up. you've won me over. trader225, order size (aka "order flow") is crucial...in the old days, so i'm told, they called this "tape-reading". let's see what le professeur has to say about that...
Oh, FM, are you referring to me? Why send me off to read nonsense? I am thinking that volume bars might look like a histogram. Down bars would go below zero and up bars above zero. Have I erred? Am I a heathen infidel?
Tortoise. You are getting far too warm. I have nothing to say. Remember your Uncle Remus. And think nagual, quantum, tick. Most importantly, what HAS to happen so that the crowd is net unprofitable, or at best breaks even.