what do you think

I thought of another way to define support / resistances just by calculating a histogram on the price. You can weight the counts by the trade volume, so the histogram would reflect the true number of shares that traded hands at each price point. Then you can draw support resistances at the peaks of the histograms -- only here there is no way to distinguish between support or resistance. You can also weight by time so that past trades are counted less and recent trades more. Let me know what you think! http://www.myquant.net/

 

You are entitled to your opinion. By the way this is not intraday but done over closing price on a longer timescale (months to years). I was just curious to see at what prices are the stocks trading hands the most -- shouldn't that mean something?

 

You know there is a whole school on volume analysis. Are they all deluded? Or should I join you in the fight to change the world?

 

ahh, so you are a price purist. I was always curious to know what the motivation is behind trading with the least amount of information. I suppose it's a macho thing i.e., I can do this with my own sheer will and prowess, I won't depend on anything else!

by the way "school of thought" is a metaphor and a common one at that in case you never came across it.

good luck to you as well.

 

I'm happy for you. Obviously you don't need volume then.

You see this is why I like traders: always a compassionate bunch who cares incessantly about other people's well-beings...

 

I heard somewhere that both the ES and the SPX influence eachother. so that volume of the ES influences the SPX and volume on a SPX stock influences the ES. This because of arb programs.

So volume can´t be discarded if that statement is true.

 

The minimum level bars on the histograms seem to identify price levels that are least stable.

 

You're not all there, mate. You are a f*cking nutter, definately not a trader. Crazy b*sturd!

 

Yes, and conversely the maxima should give you the most stable.

 

Don't listen to "Jasonn", he has been MANY personas here at ET (C-Kid, Cold, Insert, Infooo, Illuminated One...the list goes on). With every alias he assumes a different character to the point where you can't believe anything he says. Then when he gets all tough, trying to force on you that he makes buckets of cash everyday, there is nothing to do but laugh at him as he's cried wolf too many times.

Fwiw, price AND volume work very very well together but like anything else, the context and sequences of bars have to be understood first before price and volume can be correctly read. Having the incorrect context will almost insure incorrect PV reading.