Volume and price action trading

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Old Jun 4, 2012, 6:53pm   #1
 
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Volume and price action trading

Whats the best way to assess volume whilst trading?

I'm going to be using TT as my trading platform

I've heard of something called market depth - would this show large volume going through?

I'm going to base my trading around watching the market and price action all day and watching the volume closely - my research shows me this is the wisest way to play the markets to increase probabilities of success - no doubt this will take some time

I aim to trade the bund and/or euro stoxx

All thoughts on this thread would be welcome, thanks
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Old Jun 4, 2012, 7:05pm   #2
 
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Re: Volume and price action trading

Market depth shows only your broker's volume, that's one downside of not having a central exchange.

EDIT: I thought this was in a 'forex' forum. My bad.

Last edited by flbroker; Jun 4, 2012 at 10:12pm.
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Old Jun 4, 2012, 10:05pm   #3
 
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Re: Volume and price action trading

Hi warwickgrad, you can read www.humbertomalaspina.info, good information there about Volume and price action trading. Good luck.
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Old Jun 5, 2012, 1:33pm   #4
 
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Re: Volume and price action trading

It is the bids and offers at the different prices on the ladder.
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Old Jun 6, 2012, 6:30am   #5
 
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Re: Volume and price action trading

Just looking at market depth can be hard to trade off of -- especially for very active contracts. It moves too quickly from what I can see. There are some software packages out there that are based on the use of volume and price action. Volume spread analysis is one area of study that has a few software packages, some designed to give indications about when volume combined with price can be used to determine a price move. I haven't used them, so can't really speak to how effective they are.
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Old Jun 6, 2012, 6:43am   #6
 
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Re: Volume and price action trading

Quote:
Originally Posted by warwickgrad View Post
Whats the best way to assess volume whilst trading?

I'm going to be using TT as my trading platform

I've heard of something called market depth - would this show large volume going through?

I'm going to base my trading around watching the market and price action all day and watching the volume closely - my research shows me this is the wisest way to play the markets to increase probabilities of success - no doubt this will take some time

I aim to trade the bund and/or euro stoxx

All thoughts on this thread would be welcome, thanks
You should take a look @ this if you are interested in the TTs Market Depth:

NO BS DAY TRADING - No BS
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Old Jun 6, 2012, 9:56am   #7
 
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Re: Volume and price action trading

Quote:
Originally Posted by warwickgrad View Post
Whats the best way to assess volume whilst trading?

I'm going to be using TT as my trading platform

I've heard of something called market depth - would this show large volume going through?

I'm going to base my trading around watching the market and price action all day and watching the volume closely - my research shows me this is the wisest way to play the markets to increase probabilities of success - no doubt this will take some time

I aim to trade the bund and/or euro stoxx

All thoughts on this thread would be welcome, thanks

Hi warwickgrad,
There are some great "tape reading traders" over here (just take a look to DionysusToast posts on this subject, as he really do knows what he talks about), so you are in a good place to start learning.....
I personally find myself , that tape reading is not easy at all, but putting the time and effort, little by little it might start to click, and really help you in your intraday trading/scalping....
You can also start around here with the basics Tape Reading Introduction Lessons
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Old Jun 6, 2012, 10:01am   #8
 
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Re: Volume and price action trading

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Old Jun 6, 2012, 10:26am   #9
 
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Re: Volume and price action trading

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Originally Posted by DionysusToast View Post
lol... I'm very objective... just telling what I see
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Old Jun 8, 2012, 7:41pm   #10
 
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Re: Volume and price action trading

Quote:
Originally Posted by warwickgrad View Post

I'm going to be using TT as my trading platform

I've heard of something called market depth - would this show large volume going through?
I aim to trade the bund and/or euro stoxx
First: you have to understand what to looking for in the TT. Unless someone spent 3-4 weeks with you you will have no clue what all those numbers mean. And even if you have this Mentat education, you need to spend enought time to see what a regular day looks like, volume, price movement etc in the product you expect to trade. By the way, do you know the diffrence between the price action in ES, ZN, STOXX and so? An why do you want to trade this product? I watch the ZN and I have a basic understanding of what happens there but I have no idea how to read the ES or STOXX. I think you should decide what you will trade only after placing some trades on different products and comparing the winning tics expectation against your broker's fees.

Second: read John's book and if you wish to go further pay for his webinar. Some hundreds dollars spent in a very good 3 trading weeks with an excellent trader is nothing. You will spend this money on your own just in few clics of mouse in 3-4 losing days. The choice is yours.

Third: it take a huge amount of time to learn. It's a full time commitment and you can't watch a couple of hours today and come back next week. You have to see what happened at one level today, it traded, bounced, etc and you have to see how the people tradet those levels tomorrow, you have to see if the volume is different, if the range is the same or widest/narrowest etc. Every day you will play with the same folks whose only fish is to take your money.

So, mate, unless your name is Paul Atreides you have to have a Mentat for your TT
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