Price and Volume VS Technical Analysis

[aricho]

Price and volume analysis, what exactly does this mean. I just read the article on volume from the knowledge lab and it said that the "pros" use just price and volume and no other methods.

What is price and volume analysis and how is it done?

Sorry if is sounds stupid but it seems unclear to me

Thanks

 

[timsk]

aricho,
The basic idea is that everything that can be known and needs to be known about an instrument in order to trade it profitably is contained within price and volume. The title of your thread suggests that this is in some way opposed to or different from using T.A. to trade by. This is not my understanding of the situation at all - which is that price and volume lie at the very heart of T.A. Do a search to find out more and / or plough through this thread:

http://www.trade2win.com/boards/showthread.php?t=11104

Tim.

 

[Splitlink]

Price and volume analysis, what exactly does this mean. I just read the article on volume from the knowledge lab and it said that the "pros" use just price and volume and no other methods.

What is price and volume analysis and how is it done?

Sorry if is sounds stupid but it seems unclear to me

Thanks

I agree with timsk, try learning to read the bar chart along with the volume. Scrub all other TA indicators. All the information that they give is historic- so is a bar chart historic but, at least, it is as up to date as possible. I am trading much better now that I have got rid of the clutter.

Split

 

[dbphoenix]

I agree with timsk, try learning to read the bar chart along with the volume.

This is not necessarily the best way to go. While I learned with bar charts, and while bar charts are still the most commonly used, whether OHLC or candle, understanding "volume" may be easier if one uses line charts IF one can also plot a line graph of volume (if he can't, then it's moot).

In this way, it may be easier to understand that volume is activity, not a discrete event that begins and ends according to the choice of bar interval. Ditto with price activity. And that they are each continuously moving.

This is not to say that everyone should be using line charts (for one thing, I don't look forward to redrawing all the charts in my book). But at least toggling between the two may be what it takes to make this particular light come on.

--Db

 

[aricho]

cool thanks guys.

DB, i've been reading your huge thread-its good so far..

You said you posed a PDF on demand/supply but i cant find it...

Could you post it here

Cheers
-Antony

 

[Splitlink]

This is not necessarily the best way to go. While I learned with bar charts, and while bar charts are still the most commonly used, whether OHLC or candle, understanding "volume" may be easier if one uses line charts IF one can also plot a line graph of volume (if he can't, then it's moot).

In this way, it may be easier to understand that volume is activity, not a discrete event that begins and ends according to the choice of bar interval. Ditto with price activity. And that they are each continuously moving.

This is not to say that everyone should be using line charts (for one thing, I don't look forward to redrawing all the charts in my book). But at least toggling between the two may be what it takes to make this particular light come on.

--Db

Right, sorry. I find a line chart easier than a bar because I can see more clearly where the close ended for the period, which is, really, the only point with which to compare the volume
amount.

Actually, you showed that to me not so long ago. Still working on it. I had a good week but am not sure how much I owed to volume analysis!

Split

 

[RUDEBOY]

What is the matter with line charts?

 

[Splitlink]

What is the matter with line charts?

Er, nothing! That's what we seem to be agreeing about.

Split

 

[RUDEBOY]

Good call, Splitlink!

 

[dbphoenix]

cool thanks guys.

DB, i've been reading your huge thread-its good so far..

You said you posed a PDF on demand/supply but i cant find it...

Could you post it here

Cheers
-Antony

It was revised and is now part of my book. But I'm not here to plug books. If you're interested, click the www icon below. But there should be enough in the PV thread to suffice.

--Db

 

[RUDEBOY]

DB, you are essentially a good person. Carry on. But be aware of refinement! Rude

 

[Porks]

Rudeboy,

I think many of us understand all too well.

Maybe now a few more know where old Socy is coming from.

Do you ?

Porks

 

[SOCRATES]

Rudeboy,

I think many of us understand all too well.

Maybe now a few more know where old Socy is coming from.

Do you ?

Porks

You know Zero.

This is because you have no conceptual understanding of what it is like to deal with dunces who are able to initially pretend they are educated and responsible. Actually, for them to have obtained a degree from some university or other is the greatest disservice they can do to themselves and to everybody else, because they proceed to argue about that which they know nothing, and really cannot learn anything new properly and refuse to be taught.

You have to yourself experience the carlbunklry of certain individuals who despite being told repeatedly not to do stupid things, still go on to do them, and on and on, and with increasing exposure, despite repeatedly being told not to do them, only because of the recorded wisdom of all who have gone before us that these stunts cannot and do not work.

You have to experience yourself how it is that individuals who are not able to confront themselves go on to blame everybody else except themselves.

You know zero about it. You have to experience it yourself to have a reality on it.

When you actually have a reality on what certain individuals are capable of in terms of patent stupidity and finally malicious conduct, only then will you be able to express views, and not before, I respectfully submit.

 

[RUDEBOY]

Porks......you have nailed it! So, why post? Unless it's about drivel.....you know.....indicators and all that? Go on, feed yourself!

 

[RUDEBOY]

And don't just laugh......Be honest with yourself.

 

[sulong]

Yes lets be honest about the damage certain posters cause.

It seems that socrates is going to infect whatever thread I show an interest in, which is unfortunate. But anyone who studies the PV thread carefully should take away enough to be able to apply the principles to his trading. If not, sulong and erierambler are usually available.

See ya.

--Db
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Trading By Price