Volume

options

Senior member
2,374 218
Price action is the leading indicator

Volume can and does get distorted.

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.

Answer?

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.
 
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peedee

1
341 0
Options, would that be more relavent to single company dealing rather than index.
 

peedee

1
341 0
Options, i only deal with NasFuts, whats the difference between volume and price action? I thought they were one of a kind ( in a way).
 

mikeak

Newbie
3 0
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
 

peedee

1
341 0
Mikeak, dont let the membership level of this forum mislead you, im apparently a senior member, but i can assure you i am not a senior trader, ive only just started ( trading wise!).
 

options

Senior member
2,374 218
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.

Mike:

Welcome aboard.

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.
 
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options

Senior member
2,374 218
Mike.

By the way, you can avail yourself to some good moves on the eur/usd from 6.00 am or so, gmt, till about 9 am.

Don't know the time difference. But it might be late evening or so for you.
 

options

Senior member
2,374 218
P.

It applies to all time frames.

It is easier to spot (predict) over the longer time frame. But as said before. You will need deeper pockets over the longer framework.
 

peedee

1
341 0
Options, let me guess! Your a day trader! ( nothing wrong with that), but its not the be all and end all of trading.
 

Grey1

Senior member
2,186 178
Basic rules of Supply and demand against price action :--


Volume going UP Price going UP Then BULLISH SIGNAL
Volume going DOWN Price going UP Then BEARISH SIGNAL

Volume going UP Price going down Then BEARISH SIGNAL
Volume going DOWN Price Going down Then BULLISH SIGNAL

 
 
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