Why does Volume matter? Isn't non-involvement from institutional buyers itself a signal?

Discussion in 'Trading' started by CyJackX, Apr 9, 2018.

  1. tommcginnis

    tommcginnis

    Nor should there be, *going*forward* --
    it's to *direction* of price that past quantity(s) steer us.

    All transactions are a nexus of bid price+volume and ask price+volume. There is little in that mix that portends what might happen to transaction numbers should the market price return there. Those actors/interests/orders have been filled.

    What quantity *does* tell us is the interest in buying AND selling was, at that price.
    And when there are *changes* to the general path of quantity, changes to the prices that follow are bound to occur.

    In implicit form, it's not

    Pt = f[Qt]

    but

    Pt = f[deltaQt-1]
     
    Last edited: Apr 10, 2018
    #31     Apr 10, 2018
    kj5159, Xela and lcranston like this.
  2. There's alot of downtime during the trading day, while you wait for your position to move and play along the chart and unfold and reveal itself o_O,

    It's like being a sniper, you wait patiently...calmly...establish the inflection point, and then you Wait,...to either close it, and/or reverse it,
     
    #32     Apr 10, 2018
  3. jinxu

    jinxu

    It's not the frequency of posts that concern me. It's the overall length of posts that does. Hehe.
     
    #33     Apr 10, 2018
  4. bone

    bone

    Having gone from schizoid high volume prop futures spread day trader to position trader was tough. ET has helped in that regard.
     
    #34     Apr 10, 2018
    tommcginnis likes this.
  5. jinxu

    jinxu

    Also, I'm more like a bomber. I prefer to wait for someone to step on the Mine and then hit the PUSH button. Hehe.
     
    #35     Apr 10, 2018
  6. CyJackX

    CyJackX

    I think the best analogy is fishing. Drop limit orders hoping for a bite instead of jumping in and chasing the fish with your hands...
     
    #36     Apr 10, 2018
  7. Sprout

    Sprout


    There are many types of traders who participate with the markets (Taxonomy of Traders). Refer to Trading and Exchanges by Harris to get a more robust picture of who is taking the other side of your trades, their motivations, benefits, costs and what they do to avoid being taken advantage of.

    Market makers offer standing limit orders not market orders. Market orders are what moves a market. Contrary to popular belief, it's the minority who take control at market turning points, by submitting market orders opposite the current Dominant price direction. At these points, the majority of standing limit orders go unfilled by price reversing in the opposite direction.
     
    Last edited: Apr 10, 2018
    #37     Apr 10, 2018
  8. SunTrader

    SunTrader

    I joined May 2008 and have 1547 posts or 155 per year, you joined May 2010 and have 960 or 120 per year. Which then means I roughly post 0.425 times a day and you 0.329 times a day. Wow such a Yuuge difference!

    But I suppose you only posts during itchy finger Trumpie Twitter time 3 am?
     
    #38     Apr 10, 2018
  9. Starspa

    Starspa

    It amazes me that on a forum, full of expert traders that have been posting on ET for many years, there is not a consensus on the importance of volume, when analyzing and trading a chart. I'm finding this, lack of consensus, involves almost all aspects of trading technique and theory. Someone has to be right? Is this lack of consensus the real reason all traders aren't millionaire and 95% of new traders fail?
     
    #39     Apr 10, 2018
  10. sss12

    sss12

    By definition, if you had true consensus you would not have a functioning market of any type.
     
    #40     Apr 10, 2018
    i960 and Starspa like this.