Volume analysis

volfixtrader

Member
86 0
Hi folks!

I usually use analysis of volume when decide when open position. I don't beleive in any indicators, only MA on long periods could give some information.
Somebody analyses the volume?
 

patrickrooney

Junior member
12 1
There are a lot of indicators based on volume that may help you. When you say volume are you strictly looking at volume executed since the beginning of that session? Volume execute on bid side only vs. volume executed at the ask only? Moving average of volume? Only order executed for volume, quantity, of "x" or greater? Volume n the current time period versus volume in other periods in this session or previous sessions?

There are many, many ways to analyze even the the most basic of inputs like volume.
 

dbphoenix

Legendary member
6,952 1,241
If the OP doesn't "believe" in indicators, then indicators will not likely be of any value to him (though the MA is an indicator).

What matters with regard to volume (shares, etc, traded) is its effect on price given that one profits on price movement, not volume.

Db
 

volfixtrader

Member
86 0
There are a lot of indicators based on volume that may help you. When you say volume are you strictly looking at volume executed since the beginning of that session? Volume execute on bid side only vs. volume executed at the ask only? Moving average of volume? Only order executed for volume, quantity, of "x" or greater? Volume n the current time period versus volume in other periods in this session or previous sessions?

There are many, many ways to analyze even the the most basic of inputs like volume.
I look at 3 kind of volume. Firstly I looked for profile of previous day and mark big accumulation on price level. Second I found average volume and pay attention on extra volume, third I look at delta of purchasing and selling.
Moving average - is standard based on price. I used it because often big accumulation situated on them.

An example. Lines marked - is accumulation of volumes in the past period. In a circle - extra volume in moment.

ES 60 min.jpg

Second example. The power of seller decreased and bulls won. Bottom red histograms are aggressive selling, green - aggressive purchasing.

Cluster chart.jpg
 

volfixtrader

Member
86 0
If the OP doesn't "believe" in indicators, then indicators will not likely be of any value to him (though the MA is an indicator).

What matters with regard to volume (shares, etc, traded) is its effect on price given that one profits on price movement, not volume.

Db
I think price changing because somebody huge and strong has influence on price. And his influence expressed in big purchasing or selling. Big player look for big size and he need in opposite part to open big size on the best price. As a result we could see local accumulation of volume which were place for price movement.

Small player couldn't move price, a lot of small players often also couldn't move price in general because all of them have different goals. And during movements part of them close positions and stop movement .
 

dbphoenix

Legendary member
6,952 1,241
I think price changing because somebody huge and strong has influence on price. And his influence expressed in big purchasing or selling. Big player look for big size and he need in opposite part to open big size on the best price. As a result we could see local accumulation of volume which were place for price movement.

Small player couldn't move price, a lot of small players often also couldn't move price in general because all of them have different goals. And during movements part of them close positions and stop movement .
If this is something you read somewhere or that someone told you, then proceed with caution. If it is a conclusion you reached via your own research, then you may have something to work with.

Consider, however, that volume is nothing more than activity. If the activity results in price movement, then the potential for a profitable trading opportunity exists. If it doesn't, then it doesn't.

Review your data. Note where price moves decisively. Note the accompanying volume. Note the preceding volume. Note the volume following the move. Think about what these three phenomena are telling you about the activities of longer-term traders (The Money).

Db
 

volfixtrader

Member
86 0
If this is something you read somewhere or that someone told you, then proceed with caution. If it is a conclusion you reached via your own research, then you may have something to work with.

Consider, however, that volume is nothing more than activity. If the activity results in price movement, then the potential for a profitable trading opportunity exists. If it doesn't, then it doesn't.

Review your data. Note where price moves decisively. Note the accompanying volume. Note the preceding volume. Note the volume following the move. Think about what these three phenomena are telling you about the activities of longer-term traders (The Money).

Db
I do the analysis on the basis of volumes. and trades on the basis of volume. And I think volume moves price. But not vice versa.
 

dbphoenix

Legendary member
6,952 1,241
I do the analysis on the basis of volumes. and trades on the basis of volume. And I think volume moves price. But not vice versa.
No offense, but what you think is unimportant. What you have determined through testing is/will be more profitable.

At some point, you'll want to look at why price moves at all. Until then, collect examples of breakouts, as randomly as possible. Start with at least 30. Where exactly does the "big volume" print? Before the breakout? During? Or after? (You may have to switch to a smaller bar interval to find this)

Db
 

volfixtrader

Member
86 0
No offense, but what you think is unimportant. What you have determined through testing is/will be more profitable.

At some point, you'll want to look at why price moves at all. Until then, collect examples of breakouts, as randomly as possible. Start with at least 30. Where exactly does the "big volume" print? Before the breakout? During? Or after? (You may have to switch to a smaller bar interval to find this)

Db
Look at the file below. Bif volumer accumuluation make a resistance for price moving.

6c ex1.jpg
 

dbphoenix

Legendary member
6,952 1,241
Very pretty. But it doesn't answer the question.

Db
 

dbphoenix

Legendary member
6,952 1,241
If by "rebound" you're referring to breakouts, the volume occurs after it has begun, not before. Drop down to a tick chart.

Db
 

jcgoolsby

Newbie
4 1
Personally speaking, when it comes to technical analysis there are nothing more or less important. Volume confirms trend and indicates its starting or ending. It is better to see the whole picture - with both fundamental and technical analysis without focusing on one thing only IMHO