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No, I understand what you guys are saying about the volume bars. And I also said I *have* used and traded from volume bars. My main trading vehicle is ER2 so the volume bar differentials are very minor. I suppose if you are charting equities which can have wider per tick volume differential then I can see where your larger 20% error factor comes in. Now I guess what I dont "get" is how or why a 500 volume bar vs a 600 volume bar is such a big deal when making your trading decisions. I mean price is what it is - right? |
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bh - the problem with 'randomly' based VBC charts is simple - I have no idea if my setup is legit or not when taking a trade. Again, as stated above, as soon as ONE candle is off, everything after that is off.
Since I use candlestick analysis, having candles that aren't even true is completely misleading. Having a hammer on a true VBC chart is much different than a completely random TS chart.
I can see at face value how a difference of 500 vs 600 does not seem like much, but you have to remember that EACH candle is COMPLETELY different in terms of how much volume is actually represented there. I mean, I have NO idea if the next candle will have 500, 600 or 700 contracts represented. With that info, plus knowing that my candlesticks are completely inaccurate, does that make sense?