Stupid Volume Question

Discussion in 'Technical Analysis' started by pclark, Nov 24, 2008.

  1. pclark

    pclark

    OK, I am going to get flamed for this but, if I look at a Volume Indicator I would think I would see 0 then numbers incrementing upward but I see positive plus negative numbers Like -1000 etc... What do the negatives indicate? How do you read this? Sorry for sounding like an idiot.
     
  2. I've seen anything like that. Perhaps it means the price is going down. Regular volume chart works for me.
     
  3. Lucrum

    Lucrum

    Are you sure you're looking at volume?
    Can you post a chart?
     
  4. http://www.investopedia.com/articles/technical/100801.asp

    Pay a visit to investopedia on balance volume discussion.

    If a security closes higher today than yesterday close today's volume is considered UP Volume and gets added to the running total if it is lower it is considered down volume and gets substracted.
     
  5. When Volume has to be interpreted you've created your own lag.

    Try building volume into your chart, i.e. Constant Volume/Share Bar Charts. this eliminated the need for interpreting it.
     
  6. ================
    Sounds like OBV, or Upside-downside volume.

    Actually prefer regular volume for several reasons;
    including when i know[memory ] an average volume like SPY i can catch chart volume errors easily, usually.

    So the quickest perhaps wise way to help you & simplify it;
    may want to use regular volume bars & OBV........And in that order, so you can catch the errors that happen from time to time.

    Also, its a good question;
    any vol is secondary, to price,so keep that in mind.

    Also volume bars are better if you are visual, perhaps;
    if CPA type who likes numbers you may prefer the other volume indicators.

    GE had record volume one day, turned out flat that day, not meaning much @ all, that day or that week.:cool:
     
  7. pclark

    pclark

    Thanks guys I think OBV is what I was looking at. Thanks for the help.

    Paul
     
  8. Charly

    Charly

    #######################################

    Care to explain it via a chart please?

    Thanks.
     
  9. bighog

    bighog Guest

    ProfLogic


    Registered: May 2004
    Posts: 3182


    11-24-08 03:39 PM

    When Volume has to be interpreted you've created your own lag.

    Try building volume into your chart, i.e. Constant Volume/Share Bar Charts. this eliminated the need for interpreting it.


    >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>.....

    What kind of statement is that? A lag is a lag. Correct? Please do not try to intellectualize this game, this is about TRADING. :D
     
  10. pclark

    pclark

    Wouldn't using volume bars be building it into a chart?
     
    #10     Nov 25, 2008