The myth of volume as a leading indicator of price direction...

Discussion in 'Technical Analysis' started by HolyGrailSeeker, Aug 8, 2021.

  1. SunTrader

    SunTrader

    From this topic it sure doesn't show itself.

    But I was full time starting in 96' anyway.
     
    #41     Aug 14, 2021
  2. volpri

    volpri

    Durn y’all gotta be old!
     
    #42     Aug 14, 2021
  3. NazSherpa

    NazSherpa

    I could care less about the relationship between today's volume and tomorrow's range. I'm interested in current volume to today's expected range. And, this is a starting point - you can look at ETF volume. You can look at futures volume. You can look at the relationships between various leveraged ETFs and their volume. The serial correlation between volume and range on the daily time frame was a simple example for the sake of illustrating a point.
     
    #43     Aug 14, 2021
  4. NazSherpa

    NazSherpa

    Again, I'm not sure what the point of this would be? I'm interested in premarket volume (of more than one instrument) and the minutes as one variable in determining the day type.
     
    #44     Aug 14, 2021
  5. NazSherpa

    NazSherpa

    Old as dirt.
     
    #45     Aug 14, 2021
  6. userque

    userque

    LOL ... but you are looking at the correlation of current volume to current range. The current range is always already known. That is why you need to look at the correlation of current volume to FUTURE range.

    But hey, do ya thing bruh. If you like it, I love it. :)
     
    #46     Aug 14, 2021
  7. NazSherpa

    NazSherpa

    Yes, there's a relationship. And if you dig deeper you will find that premarket and early pit session volume also correlate to the entire day's range. For example, a stock that trades 5x it's normal volume in premarket for the same time frame is probably going to trade several multiples of it's regular session volume as well. And yes - it'll probably have a much larger than average range for the session.

    - I was just posting an example that would be simple to understand. These are all factors many professional, top earning traders take into consideration. Glad you love it.
     
    #47     Aug 14, 2021
  8. SunTrader

    SunTrader

    eMini Sept contract since beginning of the year narrow range days (Range < range[1]) with increased volume over prior day (volume > volume[1]) highlighted with yellow showme dots:-
    eMini.png
     
    #48     Aug 14, 2021
  9. NazSherpa

    NazSherpa

    So, yellow dots must trump math, I guess.
     
    #49     Aug 14, 2021
  10. userque

    userque

    Again, your initial general statement was, as you stated, easy for anyone to verify. Now your hypothesis has morphed into something that is easier for you to just support your theory, and show us the result, like you did earlier.

    I'd love to see, as you showed earlier, a screenshot showing that premarket volume correlates to regular session range. Thanks.
     
    #50     Aug 14, 2021
    shuraver and SunTrader like this.