Dead bang on... so true for the eminiSP and company... cj... __________________ HAVE STOP - WILL TRADE If You Have The Vision We Have The Code
If I'm understanding him right, I think he means you should be trading instruments that are trading at above their own average volume. Which I agree with. I only trade ES, and have found my signals work best when volume is higher than average.
Agree. Makes sense. Especially if the volume is waaay below average. And yet, would it make a big difference if the av. vol. were, say, 1 million shares, and the current volume were 500K? Probably not, right? It's entirely possible I'm missing something here. The subtlties of volume are (still) Greek to me.
Read about the Wyckoff principals. It is pure spread volume analysis. It woks best on liquids markets. avoid stocks with this method as market makers and big sellers can manipulate the volume. Broad based index is very hard to pull that off.