DOW - ES Charts 14/10 - 18/10

ChartMan

Legendary member
5,580 46
New tack on the volume plots - for the Bulls. I guess if the volume plots were reversed, it would do for the Bears, but I won't go there. :) The up tick volume is plotted as a line, and the down tick vol is plotted as a bar. It's easy to see how the uptick line continuously encloses the down tick bars...... At 16:20, the down tick bars start to break above the uptick line and that, perhaps, is your exit.
 

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madasafish

Well-known member
470 5
I like volume and run a 9 simple MA of the volume .. to see trends and a simple scan to see spikes. (the spikes are shown by the large triangles at the foot of the bar chart. the smaller triangles just show volume sincreases)
 

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dsmodi

Established member
509 2
madasafish,

Great presentation, but any chance you can include an explanation of what the above means, and any implications that maybe deduced from it. Also, perhaps you can mention any clues through volume you get regarding (short term) future price movements.....

(Please forgive my ignorance...)

And thanks in advance....
:)
 

madasafish

Well-known member
470 5
dsmodi

I'll start at the very beginning, " a very good place to start" etc courtesy of Julie Andrews:)


You cannot see it but on my chart there is a red triangle (hidden on chart behind DSTOC marker. showing a volume spike. at around 14:45. This confirmed the bottom at 865 and the BUY signal (bit messy at bottom: buy/sell/buy signals.

As you can see the cumulative 9 period volume is high at this time (start of day) and the rise is on high volume.. and peaks at 886.. the HOD at around 16:20.. and then we had a sell signal and prices fell and it's US lunch and volumes just fal off..
At 17.30 we have a db and a little volume spike.. usual messing around.. buy/sell/buy/sell/buy signals.
Then volume picks up into the US afternoon.. and we have a rise on increasing volume from 876 to 883.. and a volume spike as it sold off. and a sell signal. and ditto.
Volume spikes are usually confirmation of a market turn .. and increasing volume near the end of a long up or down move suggests either longs or shorts closing..

I use volume as a confirmation signal of trend changes or continuations..
 
 
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