Volume analysis is to be discarded as it is "too much information"

Discussion in 'Strategy Development' started by Buy1Sell2, Jul 6, 2009.

Volume analysis of any use?

  1. I believe in using volume analysis

    161 vote(s)
  2. I discard volume analysis in my trading

    71 vote(s)
  3. I really don't know

    43 vote(s)
  1. Volume analysis is to be discarded as it falls into the category of "too much information" as regards successful traders--Ishmael:)
  2. Alright, I'll give you that if you admit scaling out is superior behavior. :D
  3. No worries mate... Scaling out was judged to be superior and deployed by the best traders of the last two centuries... the critics are the ones who believe math and outcomes are always black and white... NOT...

    also good to study.. Zeno... to understand you don't always understand... what seems to be obvious..


    or Bertrand Russell...

  4. aceholic


    My standard strategies do not use volume in any way. However, I do have one or two successful strategies that use volume extensively in certain situations to make trades. So I did vote for "I believe in using volume analysis".

    Unfortunately, the company I work for would be very upset if I specified more than that. So I apologize for being vague, but you should realize that volume can be a useful tool if understood properly (most of the literature on volume out there is misleading garbage).
  5. Volume has its place as an excellent indicator for qualifying and/or leading price AT TIMES. When to ignore it and when it is screaming is the art to be learned. If you don't know how to do that then all you can say is it doesn't work by what you know.

    That doesn't mean everyone MUST use volume anymore than everyone must use candlecharts. It's a option that helps some, overloads others and confuses everyone before the breakthrough in the same way that learning to be proficient in the use of anything is demanding.

    At this point Volume gets 65% of the vote. Now, when does the great ET Bitchfest start, this page or next one?
  6. A good read, thanks...
  7. I don't read much info into volume, it's very deceptive at times.
  8. I used to disregard volume. That was foolish of me, and I wish that I had begun watching it earlier. I would seriously suggest that anyone who thinks volume is "unimportant" or "too much info" to take a week or two, and watch price and volume only, with all other indicators gone. You will be glad you did.
  9. Okay, kindly explain the art part.
  10. xxxskier

    xxxskier Guest

    vol analysis on its own may not be helpful, but used in conjunction with bar range (ala wycoff) and delta (bid/ask vol such as marketdelta software), it can be very useful...and is a critical part of my trading in ES...along with PA, and internals and MP.

    btw, vol analysis to me is NOT obv, chalkin, or any other canned indicator.

    i am referring to bar range + bar volume + actual bid/ask vol + T&S = very helpful

    i am sure that this is not case for all, but it is for me......and that is the way i like it.

    the more naysayers the better.
    #10     Jul 7, 2009