Volume--- how to use it and WHY

Discussion in 'Strategy Building' started by marketsurfer, Jul 2, 2009.

  1. jprad

    jprad

    Uh, you want to give that one more go?

    Constant time bars do not build at a variable rate and constant range bars will, more often than not, build at a different rate compared to constant volume bars.

    As for your charts, big whoop. It's not hard to come up with well-chosen bar values by reverse engineering the daily range and volume to "prove" your case.

    Give up the parameters and let's play it forwards and backwards a few weeks to see how consistent everything looks when we have a wide-range, high-volume day.
     
    #211     Jul 5, 2009
  2. No, on a CVB Chart only an established number of shares or contracts can be created per bar before a new bar is formed. During a major news report where large blocks of traders enter the market you will see large noisy spikes on time charts because you have a large number of volume traded per minute. My volume charts do not show the spike, just more bars are created. The smoothness of price is maintained.

    Don't mention the compliment. I, like a lot of traders are used to dealing with people that talk about things they are clueless about. Sorry to say, you are no different.
     
    #212     Jul 5, 2009
  3. You're boring me, but OK.
    I explained the composite relationship between the three types of bars about five pages ago ... somebody needs to do their homework.

    Yours (and ProfLogic's) lack of ability to understand what the charts displayed speaks volumes (... :D ) as to your lack of insight and understanding of what you are looking at when viewing a price chart.

    Yeah, lets do that, LOL.

    P.S. I knew it was going to be a waste of time ... :)
     
    #213     Jul 5, 2009
  4. Funny, I feel exactly the same way about you and JPRAD.

    Hey look, a meeting of the minds. :)
     
    #214     Jul 5, 2009
  5. People back-test strategies for years only to blow up when applying them to live conditions. If you think back-testing is better than testing in real-time you are a fool.

    PERIOD!
     
    #215     Jul 5, 2009
  6. Nope.

    The reason the moving average is worthless on your charts is because they are created using an artifiicial 7x7x7x7x7x7x7 rule, regarless of the indice traded.
    ***
    Whereas the correct way to construct them would be to analyze the amount of volume that a market has on average, break that volume down by the number of (wait for it ...) minutes traded per session, and then use that value to construct your constant volume bars, which you would be using in lieu of constant time bars.
    ***
    P.S. The readers are welcome, there's no need to thank me. :cool:
     
    #216     Jul 5, 2009
  7. Ah, there you go again.

    Backtesting can yield information and insight that would not be known otherwise.

    It certainly is important for the purpose of determining what concepts might be viable (as compared to being overly curve-fit and absolutely useless - see a jack hershey ATS currently being run by bwolinsky, LOL).

    ***

    Not much need for me to run backtests mind you, I already know that price is fractal in nature and working with multiple time-frames is a proven method of trading success (on this Board, and in the real world ... ever hear of top down analysis). :D
     
    #217     Jul 5, 2009
  8. The major difference between us Jimmy is that I've studied price for almost 15 years and documented that research every step of the way. I am fluent with what I speak because I know it inside and out. I've torn apart minute charts, tick charts, range charts and everything in between and KNOW the differences between them like the back of my hand. I have over 40,000 hours studying charts and can detail the differences in most popular studies and break down their idiosyncrasies. I actually trade for a living and back it up by trading live in front of groups for educational purposes. I do not hide behind the internet and people actually come to my office to trade.

    You on the other hand are part-time actor, part-time waiter, part-time busboy and a one lot trader that is absolutely enraged that someone could possibly know a bit more than you. You hide in the internet making snide remarks about people that you have never met nor know anything about. You lie about them and shrug it off as being inconsequential. You could be an asset to your community but prefer to play the "whiner" card. You are a product of your environment.
     
    #218     Jul 5, 2009
  9. Sorry, your lack of Physics and problem solving skills are showing.
     
    #219     Jul 5, 2009
  10. I was doing fractal (and fractional) research before you knew who Benoit was. Some of us here remember your posts as Jimmy Jam. Those posts are still searchable bud. You can come down off your pony now.
     
    #220     Jul 5, 2009