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Volume, Volume Churn and Volume Climax work across all time frames and securities. I use them trading the Emini all the time. Price alone just doesn't do it.
Volume Churn = Volume / Range
Volume Climax = Volume x Range
BT
Emini Futures Trading Every Day | Emini-Watch.com |
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Let's talk. As a
Volume
Spread
Analysis user I love to talk volume and price. Volume is the power house that drives the market.
Volume Churn= Bill Williams' squat. Short hand definition, according to Bill, a bar with a lesser range than the previous bar and Higher volume than previous bar. This is the definition I use. Actual technical definition is mfi less previous range and volume greater. These are telling bars.
Bill's story, however, is not correct. The range is held narrow because the market makers, who can see both sides of the market, see large orders on one side of the market , for example buy orders. They know that these orders are from the Professional operators. Thus their perception of value is higher so they are willing to keep the range narrow as they sell to the herd. The unsuspecting members of the herd think they are getting a good fill on their orders, which they are. But it is because of a large supply of buy orders on the other side; and that large amount of buy orders is coming from the Smart Money-the ones who tend to be buying bottoms and selling tops.
Markets move because of imbalances of supply and demand. In particular the supply and demand coming from the professional operator, or Smart Money.
BT-nice site. Would love to see some more posts and charts. I have a thread on another site where I do about 99% of the posting, which is why I have not opened a volume/price thread here: I DONT WANT TO BE THE ONLY ONE POSTING. Nothing would make me happier than an interactive thread on all things volume here on the best forum.