[atto]

Originally Posted by brownsfan019 »

BF - post a few charts if you get chance. I can't even fathom having a 15 sec chart up! lol

I use a 5 sec chart (and I don't scalp either!). I didn't trade most of today, but I'll try to remember to save some charts with my trades next week.

I thought it was insane the first time I pulled it up too, but it grows on you.

[johnjohn1hew]

Gradually rising volume on a rise makes sense, as more and more buyers are participating. If volume was rising and price was not keeping a consistently strong uptrend, then that is a sign of a growing presence of selling. Declining/low volume on a pull-back is a good indication of strength as the bears who want to short are few and the profit taking by the scared longs is not substantial. Then a rise out of the pull-back on rising volume is a good sign as, once again, more bulls are participating and possibly whoever shorted/sold during the pull-back are now covering and/or re-entering.

An entry would have been at the beginning of the rise, if you were able to judge price action and/or volume accurately to sense weak selling and stronger buying or in one of the pull-backs.

For money management, my stop would have been continuously moved to below the pull-back low, and if i sensed a weakening of upwards strength, then i would have either waited for price to hit my stop or i would ave just exited.

[wjrusnak]

5 second.... 1 tick.... 3 tick.... definitely the way to go if you want to see whats happening at key levels. Use that and a nice size larger TF and it feels like being on top of a mountain, but with a telescope... you see it all And you will also get a more detailed view of the volume spikes, as Atto pointed out today in chat.

[rcossey73]

Originally Posted by johnjohn1hew »

Gradually rising volume on a rise makes sense, as more and more buyers are participating. If volume was rising and price was not keeping a consistently strong uptrend, then that is a sign of a growing presence of selling. Declining/low volume on a pull-back is a good indication of strength as the bears who want to short are few and the profit taking by the scared longs is not substantial. Then a rise out of the pull-back on rising volume is a good sign as, once again, more bulls are participating and possibly whoever shorted/sold during the pull-back are now covering and/or re-entering.

This is exactly where I get lost.
1 unit of volume = 1 buyer and 1 seller. Correct?

If so how in the world can you attribute gradual rising volume as "more buyers"? You could just as easily claim it is more sellers. It seems to me there is an equal number of sellers and buyers, but maybe not.

I often see a 10 point move on the ES with declining volume and then a few minutes later see a 2 point move on rising volume. Not sure how that is possible if rising volume means more buyers.

[atto]

Originally Posted by rcossey73 »

This is exactly where I get lost.

You are absolutely correct. A change in volume signifies a change in interest. Volume is simply the number of contracts exchanges, each with a buyer and seller. Price is moved by an inequality between buying pressure and selling pressure, which may happen on little (or a lot) of volume.

[bathrobe]

Originally Posted by Spydertrader »

Volume leads Price.

Always.

- Spydertrader

Possibly, but what if orders of 1000 are placed at 900, 900.25, 900.50, 900.75 - if price never reaches these levels the 4000 contracts are not traded.

Some traders will trade only if the price they want is filled, others will trade when they see a swift move which can happen on low or high volume.

I do not think one leads the other, I think depending on the market participant (1 trader w/ 20,000 lots or 20,000 with one) 1 will lead.

Some systems may take volume and time into consideration, others, price of cash vs. futures, others may use volume and price.

I am trying to say I think it depends on the person or system.

[Spydertrader]

Originally Posted by bathrobe »

I am trying to say I think it depends on the person or system.

Volume leads Price. Always.

These words do not aply to people or systems.

Volume leads Price refers to the fundamental principles by which all markets operate.

- Spydertrader

[Kiwi]

One of the wonderful things about the markets is their ability to inspire absolutist statements.

Volume leads Price. Always.


Well, probably not grammatically a statement but you know what I mean.



An even more wonderful thing about the markets is their ability to demonstrate that nothing is ever "Always" true. Ever. Just when one least expects it.