Trouble interpreting price and volume

Discussion in 'Technical Analysis' started by abxs, Jun 20, 2006.

  1. abxs


    I'm trying my hand at trading based solely on price and volume analysis, but I can't seem to get the hang of it just yet ...

    Particulary regarding my entry at 10:14

    Any pointers on what I did wrong?

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  2. program trading has made volume studies in equities pretty much irrelevant.

    best wishes,

  3. abxs


    Well as you can see at the bottom of my screenshot, it was actually the ES-mini contract. Does program trading in the mini render volume analysis useless aswell?
  4. You didn't do anything wrong. Wrong is when you go long but wanted to go short. Wrong is when you buy LEA thinking they made jets. Wrong is when you don't honor your stops.

    In anycase, volume is dropping on the pullback.
  5. abxs,

    From 20-20 hindsights, it pullbacks with low volume. From 20-20 hindshights, should have waited after the three pushes (impulse waves) to the highs. From 20-20 hindshights, I might fade the extreme spike volume and dry up. From 20-20 hindsights, should have go with the trend. From 20-20 hindsights, I would have been rich if I have a time machine (then I would go for lottery).

    Good trading,
  6. =============


    Most of the trends are down & you supplied enough info on your comments /chart to help .And from any10;14-1255 area ,entry there are some good down moves by end of day . OK

    As far as probabilities, would you rather have some larger time frame like 60 minute candle charts for you or against you. ???????
    Sure you can profit either way, but look at this mourning with 60 minute uptrending candlecharts;
    compared to yesterday mourning downtrending 60 minute candle charts. Personally would prefer many time frame charts in my favor

    Just like the numerous downtrends proved end of day down [profitable] from your 10;14 entry;
    untrending 60 minutes candles did for uptrends in mourning session.

    I like your charts also;
    RSI has no data, nothing, i dont pay attention to that either .

  7. LOL, I did too at one point :)

  8. Freudian slip or lost in translation?

    Apparently MRVL don't make comics either :confused:

    Yes, I've contributed absolutely nothing of value to this thread. Sorry!

    Back to the question...
  9. your concept of volume is wrong

    1) low volume on up bars.
    This is wrong, this is consolidation, not up bars, just because its green does not mean its an up bar, consolidation should be on low volume. An UPBAR means its making a new high not if it closes green.

    2) high volume , low spread, closes near low
    wrong analysis, that means nothing when that red bar pops up after a large bar move 3 bars ago., it just means its testing the breakout high.

    3) hammer I'd short here
    wrong once again, if you haven't noticed its a higher high , you'd short here? lol.

    Doesn't even look like a shorting hammer in the first place, the tail should be on top not on the botto, that is a long hammer.

    4) where did I go wrong
    who knows what you are doing
    you aren't trading on volume , nobody knows what you are doing.
  10. fletch2


    I don't understand this comment at all. Can you explain a little?

    #10     Jun 20, 2006