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

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

  1. SunTrader

    SunTrader

    Range < range[1] and volume > volume[1] is MATH ......... that traders use.

    Not theoreticians.

    Random walk believer too huh.
     
    #51     Aug 14, 2021
    userque likes this.
  2. NazSherpa

    NazSherpa

    That's great.
     
    #52     Aug 14, 2021
  3. NazSherpa

    NazSherpa

    Anything but.
     
    #53     Aug 14, 2021
  4. userque

    userque

    Help me out here. How does this response apply to my question?
     
    #54     Aug 14, 2021
  5. NazSherpa

    NazSherpa

    I posted 20 years of data demonstrating that there is a correlation of .63 between daily volume and range for NQ. That is statistically significant in any statistics book. Do your own homework.
     
    #55     Aug 14, 2021
  6. NazSherpa

    NazSherpa

    The 'anything but' was a reply to the comment about being a random walk believer. If I inadvertently posted that to a comment of yours it was done in error.
     
    #56     Aug 14, 2021
    userque likes this.
  7. SunTrader

    SunTrader

    0.63 is in no way statistically significant.
     
    #57     Aug 14, 2021
  8. userque

    userque

    Again, you correlated today's volume with today's range.

    By the time you know today's volume, the range has already taken shape.

    You need to correlate the present to the future.

    I mentioned that before. And you seemed to understand, because you then said that premarket volume correlates to regular session range.

    Cool, that's what I'm talking about--a current variable that correlates to a future condition. So I said, can you show us that screenshot, like you did for NQ.

    Now here we are again, full circle.

    I just want to know, can you support your claim about premarket volume correlating to regular session range? Thanks.
     
    #58     Aug 14, 2021
    shuraver likes this.
  9. Overnight

    Overnight

    Pardon my possible misunderstanding here, but you did not post "20 years of data."

    You posted a daily range grid for a month of days in the NQ, from 20 years ago.

    That is not the same thing as posting 20 years of data. This is why I asked if you might post those same date ranges for 2017,18,19,20. Let's see how they look. Am curious if the correlation held.

    https://www.elitetrader.com/et/thre...of-price-direction.360779/page-3#post-5438406
     
    #59     Aug 14, 2021
  10. NazSherpa

    NazSherpa

    #60     Aug 14, 2021