Practical Volume Analysis

aricho · Jul 17, 2005

Hey,
I have been reading the thread on price, (volume, demand supply ect for the last 2 days.

I can see how you use the volume analysis and how it works in hindsight but i cant seem to tell whats goin on at the moment.

If anyone clould help could you please take a look at the attached chart and tell me whats happening at the moment, whats going to happen in the future and why, using volume?

cheers guys
Antony

RUDEBOY · Jul 17, 2005

Hello aricho! If you want a comprehensive explanation and a more detailed chart(s) for volume analysis try Market Volume.com. Unfortunately they only serve the major U.S. indices, but they are definately worth a look. Rude.

chipper338 · Jul 17, 2005

judging by the decreasing volume from June to July, I'd say this is a topping action and a selloff will occur soon. Reason? volume decreases as ASE tops indicates that buyers will not push ASE to new highs.

However, temper this recommendation with the fact that volume tapes off in the sumer (US) anyway.

hope this helps

dbphoenix · Jul 17, 2005

aricho said:
Hey,
I have been reading the thread on price, (volume, demand supply ect for the last 2 days.

I can see how you use the volume analysis and how it works in hindsight but i cant seem to tell whats goin on at the moment.

If anyone clould help could you please take a look at the attached chart and tell me whats happening at the moment, whats going to happen in the future and why, using volume?

cheers guys
Antony

Unfortunately, this isn't "the moment" but is hindsight like all other charts. As for what's going to happen in the future, there's no way of knowing.

But you can begin by looking at the chart as if volume weren't available to you:

thevinman · Jul 22, 2005

Vsa

Hi Antony,

Check out the site of tradeguider.com. They have information on Volume spread analyses (VSA). Tom Williams tells perfectly the interaction between price, spread and volume of a stock.

Also a book called Techniques of Tape reading (Graifer) tells a lot about the use of volume in combination with chart patterns.

Good Luck,

VInman

neil · Jul 22, 2005

A quick look Anthony

dbphoenix said:
Unfortunately, this isn't "the moment" but is hindsight like all other charts. As for what's going to happen in the future, there's no way of knowing.

But you can begin by looking at the chart as if volume weren't available to you:

Anthony

See "Support" for prices at 4200 for example ( Just my opinion) :idea:

The above thought relates to "probability" of course, not "certainty."

aricho · Jul 24, 2005

Here's another

Heres another chart (sorry it's in a word document) It's the S&P500.

My analysis: The latest bar could not take out the down bar before it. Also, the latest day had a lighter volume than the day before that went down.

therefore, tomorrow will be down.

Am i right or totally wrong?

thanks for your help

dbphoenix · Jul 24, 2005

Neither and both.

How will you play the market if it goes down? Why?

How will you play the market if it goes up instead? Why?

That's all that really matters.

Be prepared. Don't worry about predicting the future. Concern yourself only with being prepared for whatever the market throws at you.

Keep it simple.

aricho · Jul 25, 2005

dbphoenix said:
Neither and both.

How will you play the market if it goes down? Why?

How will you play the market if it goes up instead? Why?

That's all that really matters.

Be prepared. Don't worry about predicting the future. Concern yourself only with being prepared for whatever the market throws at you.

Keep it simple.

.

ok, how do i do that?

Do i say, entry at x price. Stop at y, blah blah? do i analyse the volume as the day progresses?

dbphoenix · Jul 25, 2005

Rather than repeat a lot of information that's already been posted, I suggest you start here:

http://www.trade2win.com/knowledge/trading-plan-template

Practical Volume Analysis

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