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

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

Volume analysis of any use?

  1. I believe in using volume analysis

    162 vote(s)
    58.5%
  2. I discard volume analysis in my trading

    71 vote(s)
    25.6%
  3. I really don't know

    43 vote(s)
    15.5%
  1. B1S2 is correct in his statement.

    Traders who claims to use volume in their trading won't post their live calls ... and when they do, they won't take responsibility for their losses, as it wold repudiate their assertions of claiming superior performance by using volume.

    The old "perfect chart" syndrome at its worst.
     
    #491     Aug 6, 2009
  2. Actually, what gives an enomous boost to earnings is the skillfull application of contracts to an existing trend.

    All indicators are methods to identify a trend and gauge it's age so one may measure risk appropriately.
     
    #492     Aug 6, 2009
  3. jjf

    jjf

    MandelbrotSet
    ---------------------------------------
    You seem to have a tendency to swing all over the place.

    One minute you are the self appointed head of a self confessed volume trader's fan cub and now you state that volume traders wont take responsibility or post live calls.

    God knows who you will be tomorrow.
    Compared to following you, trading ES is easy.

    jjf
     
    #493     Aug 6, 2009
  4. Nah wimp.

    My relationship with RN has nothing to do with his using volume to trade. It's based on (i) our previous communications, (ii) the fact he's a standup guy on an internet board full of multi-alias posters, frauds and liars, and (iii) the fact that he called you on your trash talking and made you go hide in the corner ... on an internet forum, of all places, ROTFLMAO! :D :D :D

    ... and everybody saw it.
    RN isn't a "volume trader" .. RN is RN, haven't you figured that out by now? :confused: :p :cool:

    Later wimp
     
    #494     Aug 6, 2009
  5. jjf

    jjf

    I know that it is not my business, but you have piqued my curiosity and that of many others as well.
    "Are you and RN sharing a room at night?"

    jjf

    PS: I should add that in your case it would only be perfectly natural to issue an indignant and somewhat hysterical response, slightly drizzled with a touch of stupidity.
    It seems that an awful lot of people are resorting to this these days.
     
    #495     Aug 6, 2009
  6. Redneck

    Redneck


    Talk about blatantly ingoring the obvious

    You may want to take a "long" look in a mirror

    RN
     
    #496     Aug 6, 2009
  7. Redneck

    Redneck


    Thank You Sir:D
     
    #497     Aug 6, 2009
  8. Volume always seemed confusing to me until I discovered VSA (volume spread analysis). Now I find volume to be very helpful.

    I initially found out about VSA during a free trial at Advanced Trading Workshop (ATW). There are 2 free videos on the website describing a few of the best VSA patterns. However, you have to register for a free 30 day trial to watch the videos. There is also an excellent MACD divergence video that can be viewed without registering, if you are interested:

    http://advancedtradingworkshop.com/Freebies/tabid/98/Default.aspx.

    I learned a lot during the free ATW trial, even though I did not sign up for the full course. Once I understood the basics of VSA, I purchased the original book on VSA called "Master the Markets". It can be purchased as an e-book for $9.95:

    http://tradeguider.com/m90_checkout/Cust_Product_Books.aspx

    The book is well written, but very detailed. It really helped to watch the ATW videos first to get the big picture and to understand a few of the most important VSA patterns.

    I have read a lot about volume and have listened to several speakers in an attempt to understand it. VSA is the most helpful approach to understanding and using volume that I have found.

    Of course, volume alone is no more important than trend, momentum, etc. But when a volume signal lines up with your other indications for a trade, it further improves the probability of a successful trade.

    I am not a client of and am not endorsing ATW or TradeGuider, although I learned quite a lot for free from both organizations.
     
    #498     Aug 9, 2009
  9. Buy1Sell2

    Buy1Sell2

    And when it doesn't line up and you watch the train leave the station, then what? Adding volume analysis results in having subjective variables in the equation. :)
     
    #499     Aug 11, 2009
  10. So what if it was possible to eliminate the subjectiveness and the variables of using volume on a chart. Would you entertain the opportunity to test it?
     
    #500     Aug 11, 2009