LOL. In truth, I prefer the term Professional Money. The problem is most people do not know the type of professional being described. Hedge fund managers and mutual fund managers are professionals, but are not the Professional operator about which I speak. Professional syndicate traders are different. They are secret and they are real. Take a look at any price chart. You will see that at highs and lows there is always somebody buying and somebody selling. The group that tends to be on the right side most of the time is the "Smart group". Of course, I am assuming that you believe in that thing called the herd. As a group the retail traders tend to be on the wrong side of the trade at tops and bottoms. While I am not really concerned with picking the top or bottom, I am concerned with the group that is on the correct side at them. It is their selling (dumping supply) that creates the top and their buying (soaking up supply-demand) that creates the bottoms. Generally, people term them "smart money". Not because they have a lot of it, but because they seem to be putting it to use on the right side of the move and at the right time. But if you think that the big money players do not have better information, better access, and are highly intelligent with the best educations, then you are simply wrong. Wake Up. P.s.- Richard Ney's call to the masses, if you will, was wake up. It was on his license plate, if you see pictures of him in front of his car. He believed the public should realise that the markets were being manipulated by Professional money. A famous ganster who was given access to the "back rooms" of the stock exchange said afterwards, "I think I joined the wrong mob". I put the words in my posts but they are directed at nobody in particular; rather to everyone in general. And with deference to Ney.
KPC You will need to be specific if you hope to be taken seriously. Generalities just do not cut the mustard in the real world of trading.
The journals might have useful information but I can only read the abstracts now. I suspect this article has useful information: http://www.afajof.org/journal/abstract.asp?ref=0022-1082&vid=55&iid=5&aid=280&s=-9999 The Journal of Finance Article Abstract -------------------------------------------------------------------------------- Price Momentum and Trading Volume Charles M.C. Lee Bhaskaran Swaminathan Volume 55: Issue 5 This study shows that past trading volume provides an important link between âmomentumâ and âvalueâ strategies. Specifically, we find that firms with high (low) past turnover ratios exhibit many glamour (value) characteristics, earn lower (higher) future returns, and have consistently more negative (positive) earnings surprises over the next eight quarters. Past trading volume also predicts both the magnitude and persistence of price momentum. Specifically, price momentum effects reverse over the next five years, and high (low) volume winners (losers) experience faster reversals. Collectively, our findings show that past volume helps to reconcile intermediate-horizon âunderreactionâ and long-horizon âoverreactionâ effects.
You may have missed the dialogue earlier in the thread between Pro Logic and myself, but using IB charts for CVB is probably a waste. Unless you are using multi-charts it will probably not cut the candles at the exact volume desired which according Pro Logic renders them almost useless. I tried using Sierra Charts and on some big block trades, my candle would run over by 200 volume sometimes, not good. When checked against E signal the same problem occured.
How long did it take you to be able to read a chart with volume so well? A lot of screen time I would imagine? Don't get me wrong, I am not opposed at all to hard work. I just think this may be an ongoing project for me as there is a lot to glean off the chart, which makes it look very subjective when you first start. It makes sense when you provide such good explanations, but I can't pick it up in real time, atleast not in the last couple of weeks. It's probably akin to good trading, it take time.
Hi KP, Do not forget that the game is changing very rapidly. A lot of stuff that locals used to do no longer works. Market makers' roles is being deminished greatly in equities trading. And electronic futures do present almost level playing field. Sure there are insiders with more info than us, but when they act we see what they do via charts, dom and t&s, if used correctly. redduke
I downloaded and used Multicharts for the last several days and had them side by side with E-signal. The diffreneces were very small. So, I guess E-signal also has correct volume bars as well. I'll continue observation.
You are micro trading if you have to scrutinize your data at that finite detail. The result is over analysis -- You will constantly seeking reassurance in one more signal, or confirmation in another indicator. This often leads to self-doubt and inaction, causing you to miss out in many good trades, and ended up chasing the bad ones.
I spent a few hours on Friday with 2 individuals that are considered two of the foremost authorities in their fields and are in charge of 3 of the largest funds in that field in the world. Both of these individuals are dual Ph.D.'s to my simple Masters. They are the epitome of what you call "Professional Money". The 3 of us played in the market and in 4 hours I was 6 for 6 in 3 markets they are considered experts in . . . they were 2 for 9 combined and dumbfounded at how I did it. I am wide awake thank you and unlike you, my eyes and mind are wide open.