Volume during a Pullback

[glebecki]

Hello, I need help in understanding volume action during a pullback. How can reading a volume histogram help in understanding a pullback? What does volume say about the pullback? I mean what does rising volume imply during a pullback, what does falling volume imply during a pullback? If price is pulling back after an upward move, is there a clue in volume size and direction (rising/falling) to help forecast the move after the pullback is completed?

I thank you for all the help regarding my previous questions. This website is a treasure.

--george

 

[grantx]

Hello again, George,

This may help (it is 14 pages long), and probably the best:

http://www.trade2win.com/boards/price-volume/27069-s-p-analysis-friday-2nd-oct.html

For the more general (but helpful):

Price & Volume - T2W Day Trading & Forex Forums

This is 40 pages long:

http://www.trade2win.com/boards/price-volume/12480-volume-tells-all.html

And this is 104 pages:

http://www.trade2win.com/boards/price-volume/12480-volume-tells-all.html

Grant.

 

[TheBramble]

Glebecki, you’re focussing too narrowly. You need to consider not only the profile of volume and price action of any specific ‘chart pattern’ for any given instant in time, but the wider context within which that pattern is occurring.

Is the move preceding the pullback a professional or a numptie motivated move? Pullbacks are for very different purposes depending on who the players are. Their intents and expectations are quite different.

While grantx has given you a formidable list of references and while there are a seriously large numbers of books on the subject, few actually get to the nub of the issue. Which is actually quite compact.

Check out posts relating to weak hands and strong hands and any posts that remain by Mr. Marcus. They’ll put you on the right road.

 

[grantx]

Mr Bramble,

When did you get back from your exotic B&B? Landlady threw you out for sh1tt1ng the bed?

Grant.

 

[newtrader22]

george,
there is a good book on price and volume by Timothy Ord, " The secret science of price and volume". You can go through it.

 

[glebecki]

Hello again, George,

This may help (it is 14 pages long), and probably the best:

http://www.trade2win.com/boards/price-volume/27069-s-p-analysis-friday-2nd-oct.html

For the more general (but helpful):

Price & Volume - T2W Day Trading & Forex Forums

This is 40 pages long:

http://www.trade2win.com/boards/price-volume/12480-volume-tells-all.html

And this is 104 pages:

http://www.trade2win.com/boards/price-volume/12480-volume-tells-all.html

Grant.

Grant, you've outline quite an extensive homework assignment for me. Aside from trading I like studying about trading second best. I now have something I can really sink my teeth into regarding volume. Thanks, -- george

 

[glebecki]

Glebecki, you’re focussing too narrowly. You need to consider not only the profile of volume and price action of any specific ‘chart pattern’ for any given instant in time, but the wider context within which that pattern is occurring.

Is the move preceding the pullback a professional or a numptie motivated move? Pullbacks are for very different purposes depending on who the players are. Their intents and expectations are quite different.

While grantx has given you a formidable list of references and while there are a seriously large numbers of books on the subject, few actually get to the nub of the issue. Which is actually quite compact.

Check out posts relating to weak hands and strong hands and any posts that remain by Mr. Marcus. They’ll put you on the right road.

Bramble, Thank you for the addtional help. I notice each time I put out a question on Trade2Win, I receive some extremely impressive responses.