If you think about it. If volume was displayed correctly you would only have to buy on the 'blue' bars and sell on the 'red' bars to make consistent profit. (Scalping/short time frame trading.) There is a 'time effect' lag/prediction attribute to it.
You can't allow for the 'waiting' orders and the sudden 'spikes'.
So would a view over weeks and months pay off better than trading on a 5 min time frame. (Let it settle down.) But much deeper pockets needed.
And you can never gauge market sentiment. You may think you can, but you can't. The closest you will ever get is a second guess.
If you knew what all the big players for any given market had done for the last 3 months and knew what they were going to do for the next 3 weeks, then you would have a chance. You would also have to keep an eye on the ancillary markets to further weight that view.
And so it stretches out like a ripple or a spider's web.
If anyone can get these 3 things down pat. they would be millionaires within a couple of months.
Follow price action and support and resistance where your historic parameters have already been disclosed. History repeats itself.
Just be prepared for when it does not.
Hi,just found this site,first post.I've recently become interested in the eurex and forex markets.I live in Alaska and the U.S. markets open at 5:30 am.A disgusting hr. for anything not involving a firearm or rod.I can trade the above at what I consider civilized hours.Went a long way around but just wanted to say I agree with options about price action and investor/market sentiment.I use only price and s/r zones with the occ.use of fib levels that I fit to the charts,I've tried a lot of indicators but found them not reliable or it could be that I'm not bright enough to use them.
This is a great forum,the thing that jumps out is how civlized you all are to each other,much diff. than what I've seen elsewhere. Thanks Mike
Over a longer period of time you are better able to incorporate volume into the assessment. But that is 70 % hindsight trading. Bring that forward to the moment. Up to 5 min trading, and that volume assessment goes out of the window somewhat and becomes a seat of the pants job into price movement. (Because you get too close to the action.) Take it to a 1 min chart and you will be up and down more often than a prostitutes knickers.
It's all dependant on your chosen time frame.
But I would offer that if you do not know the difference. Trade very very carefully until you find out.
Have a look at Newtron Bomb's forex thread. If you haven't already done so.
"This is a great forum,the thing that jumps out is how civilised you all are to each other,much diff. than what I've seen elsewhere"
Well the last few weeks have been a bit of a brawl on some points. But pleased to say that the site is getting back to normal again.
Enjoy what there is to offer.
by the way what's the weather like in Alska?
Yes I know it's an English pre occupation. But Alaska always conjures up visions of snow and huskies, and steaming log fires.