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

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

  1. Overnight

    Overnight

    What do you mean it is for that date? You just told me over and over that it is 20 years worth of data.
     
    #71     Aug 14, 2021
  2. NazSherpa

    NazSherpa

    A correlation coefficient is not new math. The NQ continuous contract price was at that level 20 years ago.
     
    #72     Aug 14, 2021
  3. NazSherpa

    NazSherpa

    It's 20 years of OHLC & V data for the NQ. Is there part of that that you can't comprehend or do you just not like being wrong?
     
    #73     Aug 14, 2021
  4. userque

    userque

    He's used to being wrong ... so I don't think it's that one. :)
     
    #74     Aug 14, 2021
    NazSherpa likes this.
  5. Overnight

    Overnight

    Where in this grid, which is the only one I see you have posted, is 20 years of data?

    As you have admitted, it is single days of data.


    nazsherpa.JPG

    I simply asked if you could post those stats calculated for the same days in 2018, 19, 20, just to see if the correlation held.
     
    #75     Aug 14, 2021
  6. NazSherpa

    NazSherpa

    I've said nothing of the sort. It's 20 years of data. Don't be a clown. You're making a fool of yourself. The correlation is on a data set of daily data that spans two decades and has over 5000 data points. Are you refuting this fact?
     
    #76     Aug 14, 2021
  7. Overnight

    Overnight

    naz1.JPG
     
    #77     Aug 14, 2021
  8. NazSherpa

    NazSherpa

    I've got one guy in here telling me that traders don't use math and that a correlation coefficient of > .60 isn't statistically significant despite any and every statistics professor on the planet teaching that it is. Then I've got another guy trying to pick apart a screenshot of a simple excel spreadsheet that any capable person could replicate. You guys must be miserable. I apologize to the OP that your thread took this turn. If the OP is interested to learn how professional traders at prop shops and hedge funds (I've done both) incorporate volume in their daily trading, I invite you to DM.
     
    #78     Aug 14, 2021
  9. userque

    userque

    [​IMG]
     
    #79     Aug 14, 2021
  10. It is correlated after the fact. If you see a large green candle with huge volume you will think that the price appreciated because of the huge volume. The candlestick still at play could be at breakeven with low volume and at the last second all of a sudden a large whale comes and buy up causing a large green price spike and volume and the candle closes. Won't the candlestick then not tell the full story? Because 90% of the time it wasn't doing anything on low volume. Reading volume is more of a "now" moment. After that candlestick closes, does the volume in that past bar mean more price appreciation? Sometimes it does as retail will see the price increase and fomo into the price spike causing more and more people to join in, other times people will see the large increase and fade the move.
     
    #80     Aug 14, 2021