Price, (Volume), Support, Resistance, Demand, Supply . . .

[wobbles]

Tom Williams book

By the way, for anyone interested in P/V, I'd heartily recommend Tom Willams' book 'The Undeclared Secrets...' which I am reading now. I have never read anything like it. Brilliant piece of work!

Quite surprising to see the book gets so little mention (including on T2W). Perhaps it's destined to remain a secret

I would also highly recommend Tom Williams’ book, although a tad expensive. It has information that I was not able to find in any other book. I couldn't put it down. Lots of good examples which he takes you thru step by step.



Also don’t forget DB’s book. Its cheap at the price. I am amazed that he mentioned on an earlier thread having sold so few copies. If you're interested in price volume, then snap it up. Maybe DB is just not very good at marketing it.
I know that I only picked it up by accident on his yahoo site.


Although I found that the approaches in each book to be very different, they complement each other perfectly.

 

[porgie]

system

...it can be easy, and simple...confidence builds when you test day in and day out ....nights also..the long lonely nghts staring at the screen trying to figure it out...hundreds of saved dead charts..then you start to see things that become concrete....that are the same always and forever...almost...and then you eliminate the stuff that is iffy and disappointing...and narrow the field of potential concrete stuff...and when you find the simplest, most accurate system/method that is the vehicle that allows you to capture consistent points with very low risk and you have developed , absolute confidence built by testing until you are sick of it, unless you love it as I do..a deep passionate desire to understand what the market is saying to me, not to just make money...I actually don't have but little money nor am I impressed with riches....My family wants the money..........."Give a man a fish, feed him for a day, teach him how to fish, feed him "and others" for a lifetime" is what I hope to achieve........
I hope Mr. Db will forgive my off topic stuff...I am extremely bored on the weekends......The few who succeed don't usually freely help others...Db does...He changed my thought processes and direction...Price/realtime....{working on volume}.....supply/demand......support /resistance....general and shorter term trends..........retracements or pullbacks with.{weak volume or strong?}..........risk/reward and trade management/stop losses, trailing stops, etc. as well as all of the above are the building blocks of confidence over a period of time.....in my case, a very long time....my lack of superior intelligence is probably what delayed my progress......but conversely, I think not being smart enough to know when to quit kept the process alive, ...I have a proven, point capturing method....only will be shared with my immediate family........my brother is a prime example of superior intellect factor...we traded together...his engineering background of 30 years would not allow him to stop anticipating the intraday market and challenging me as if we were in a personal right/wrong contest everyday and every converstion.....I didn't "win" in the long run because I never allowed myself to enter the "contest".... .......he quit trading intraday 2 years ago and said it can't be done successfully.....too manipulated....because he couldn't figure it out overnight/gambled/ no stops/ etc...he is definitely smart...in his field..... .....He will be given an opportunity in this field again....if he chooses....blood is thicker than mud ....as the song goes............are most successful traders goofy?

 

[dbphoenix]

Back to business . . .

 

[FX_Cowboy]

Back to business . . .

Looks like there are signs of distribution there. Volume at the highs in the range are low relative to volume at the lows. It would not be a surprise if we saw a breakout down.

 

[dbphoenix]

Looks like there are signs of distribution there. Volume at the highs in the range are low relative to volume at the lows. It would not be a surprise if we saw a breakout down.

Depends on which highs and which lows and what volume.

Volume on the test in May was somewhat higher than in March, which is a plus since it resulted in a reversal, and the volume on the LrL in August was lower, which is also a plus. There was insufficient demand in December, which is a negative, but the higher volume in April served to create a reversal, not a continuation. There was also insufficient demand in May to push price higher, but this doesn't necessarily mean distribution. Prices can fall quite nicely through simple apathy.

 

[rrtech]

Does anyone know of any sites where I can learn about intraday volume analysis? I trade the Dow Jones

 

[dbphoenix]

Could you elaborate? Volume analysis is one of the subjects of this thread.

 

[rrtech]

Could you elaborate? Volume analysis is one of the subjects of this thread.

I want to learn the basics, so a site with some educating articles and charts would be ideal. As I do not really know anything about volume analysis at the moment I do not know the right questions to ask on this thread to get me useful information.

I just want to learn basic price and volume set-ups to look out for to help me with intraday trading. I want to know when a trend is likely to continue and when it is likely to end so I have a reinforcement of my daily support and resistance levels.

 

[dbphoenix]

The only site I know of is realitytrader.com, and I don't know how much of its material is still free. However, there are several books you may want to look at, some of which are available from the library. Click the www icon below to access my website for further information.

Volume "analysis", however, has to do with analyzing the balance between buying pressure and selling pressure. This is reflected in the behavior of price. Therefore, while addressing individual bars may be necessary when using hindsight charts in order to explain principles, doing so in real time is generally useless and, fortunately, unnecessary. This makes most "candle" analysis irrelevant.

As for "basic PV setups", there are three. However, they won't do you any good if you don't understand their dynamics. There are, in other words, no Cliff's Notes for understanding trading by price; understanding takes time and study, usually more time and study than most traders are willing to commit to.

--Db

 

[porgie]

Db,

Your price/volume comments are finally soaking in. I can't as yet decipher the long term charts nor have I really tried. yet....the comment about candles is the same i have had for some time...anything lagging is out for me as an intraday trader....This morning the volume is starting to really simplify my chart....p/v...s/r....s/d....my only real confliction has come from chart time frames...my system works same on all, but which do you prefer.I am hung up on 5 minute, but have the longer time frames on screen simultaneously if desired...I prefer simplicity..1 chart for price with volume only... ..I have asked you this before I think and my impression is you prefer 5 minute on emini's or does it matter??

 

[dbphoenix]

I use the dailies pre-open to aid in drawing my S/R lines, then I minimize them. During the day, I use 5m, 200T, 100T and 4T charts.

 

[porgie]

For some strange reason, P/V came together today..when you first came on my screen at another site we won't mention, simplicity jumped out at me...180 degree turn in my approach.....less stress ...thanks much for the response...as always..

 

[porgie]

Last bother today....bar noise...shouldn't only closing tick to next closing tick be gauge of determining if volume is up or down volume?? even if run direction has not changed I consider bar noise to be just that.....right ? or wrong? .Also, can volume be projected most of the time ...for instance, 5 min bar read @ 3 or so minutes to get a jump on volume reading or is that just anticipation...and not good .... ..Hope that makes sense...Thank You

 

[dbphoenix]

"Volume" and price movement are independent of how you choose to display them.

The market is a movie, but you're trying to make it into a slideshow.

 

[porgie]

Thanks,

I understand.......left to right..bigger picture than each bar....otherwise, s/r...s/d would be of no value...instead, reading volume within turn to turn....reversal to reversal...

 

[dbphoenix]

If you're hung up on "bars", go past and behind them.

 

[porgie]

Db,

.....If one begins to read 5 min chart P/V ..S/R...S/D...reasonably well, can one expect to do the same equally well on all time frame charts without total mind/system twisting?.....I would be happy to attach charts but I am totally ignorant of doing so....I am researching now....all my charts will show is price turns and breaking handdrawn trendlines as volume increases on bars in new direction ...diminishes on pullbacks....focusing on demand lines going up and supply lines going down....looking for climax bars followed by new turn...with volume readings telling the tale..... ..... ......Is average daily volume important to watch?...I certainly am seeing this..I realize that can be an everchanging point but pretty much of a factor for day's volume watching...and YM has been about the same range for last week since I have really been watching it.....or is increasing decreasing volume meaning same at any level?...I usually wait for 9:00 since volume isn't getting cranked up before then and more times than not 9:00 turn occurs... ........ .....Am i still making it a slideshow instead of a movie?...I only intraday YM.......I sincerely trust your opinion...If you wish me to go quiet and not post, I respect that as well...... Thanks Much...

 

[Spcboe]

If you're hung up on "bars", go past and behind them.

I am new to this site and this is my first post. I have finally read from the beginning of the thread. Excellent thread.
Db, what is your source of this chart. I really like that line graph volume.

 

[dbphoenix]

Db, what is your source of this chart. I really like that line graph volume.

SierraCharts (sierrachart.com).

 

[Splitlink]

I've been through these posts more than once and have come to the reluctant conclusion that I am incapable of reading anything meaningful into volume figures . As has been mentioned several times, support/resistance are neither if the price is not supported or resisted at these levels. To be frank, I do not need more than an 11plus certificate to understand that, but it seems to have generated a thread of around 500 posts to philosophize about it and I have found nothing really new at the end of it all.

It seems that even the most skillful P+V reader is likely to make the same number of mistakes as any other system user and, when studying price, volume is likely to be more hindrance than help to me in deciding direction because it is so flexible in its argument. One can practically find any reason in hindsight
as to why one was right or wrong in making his decision on the basis of light or heavy volume. Therefore,
it is unlikely to be either better or worse than any mechanical method which has been reasonably backtested and is coupled with selfdiscipline.

Split