[UrmaBlume]

Originally Posted by become »

[I]2) UrmaBlume,Just to be clear, are you saying that you do not use any method to divide ticks into buy and sell ticks? I.e., you determine "balance of trade" by some other means altogether? TIA

The 2 most common methods used to determine buy and sell volume by most data vendors are 1) "Up and Equal and Down and Equal" - that is if the most recent price is higher that the previous or equal to a price previous price that was equal to a price that was higher than the previous price it is designated as UpVolume 2) Bid and Asked - Trade on the asked/offer is designated as buy volume and on the bid as sell volume.

While we do not deal with or divide ticks, we do, indeed, designate volume as either buying or selling and yes we do use a different means/method.

[rigel]

UrmaBlume,
Your efforts are very much appreciated,

I have a question, does this all suggest that in today's markets, reading price and volume relationships as per Wyckoff is no longer relevant.
ie. Supply/Demand, Cause/Effect, Effort/Result, Support/Resistance, and Trends.

[UrmaBlume]

Originally Posted by rigel »

UrmaBlume,Your efforts are very much appreciated,I have a question, does this all suggest that in today's markets, reading price and volume relationships as per Wyckoff is no longer relevant.ie. Supply/Demand, Cause/Effect, Effort/Result, Support/Resistance, and Trends.

Thank you rigel,

I don't think it is so much a matter of relevance as it is a matter of efficacy.

For us the approach I have described makes more sense and has proven to be more effective accross all markets and all time frames. The technology for both has existed for decades.

To me, increased volume on a move means the move was opposed - higher total volume on an up move means that selling was encountered. We believe that the power of a move, in any time frame, is derived from the extent of the imbalance and NOT the total volume in the move.

I was taught that moves in price are but advertisements for opposing activity and until that opposing activity begins the move is likely to continue. Further, that oposing activity slows/ends moves and adds volume. It is all in how you break down the balance of trade.

This graph shows a harmonic of our measure of the balance of trade. From this graph it is easy to see when the opposing activity over powers and ends the move to mark a new begining - notice how the change in color in the X's on the bottom graph comes BEFORE the change in direction in price.



cheers

[rigel]

Originally Posted by UrmaBlume »

Thank you rigel,

I don't think it is so much a matter of relevance as it is a matter of efficacy.

To me, increased volume on a move means the move was opposed - higher total volume on an up move means that selling was encountered. We believe that the power of a move, in any time frame, is derived from the extent of the imbalance and NOT the total volume in the move.

I was taught that moves in price are but advertisements for opposing activity and until that opposing activity begins the move is likely to continue. Further, that oposing activity slows/ends moves and adds volume. It is all in how you break down the balance of trade.

This graph shows a harmonic of our measure of the balance of trade.

cheers

Thanks, back to more constructive exchange
Yes agree with you, anything which provides an extra edge in today's markets.

What you state about volume is also right, think Dbphoenix on the Wyckoff thread has also pointed out a number of times that:
1. Volume is just activity and not intent
2. It is selling that makes up volume, no matter what the demand.

Personally do not have the tools that are at your disposal but am well versed in Wyckoff as well as Taylor and find great benefit in reading Effort (volume) v/s Result (price range) on any particular time frame.- am not into big swing trading, strictly intraday and that also focus for an hour or two (morning and evening)looking for the main play of the day as per Taylor only, if no trade, there will be another day

[Frank]

Just catching up on this thread and got a nice chuckle. But I think I want to change the metaphor...

The market is like a nightclub in Hollywood and we are strategizing in the mens room here at traderslab. Outside sits sits the prize - the young Hollywood actresses and we are sharing tips - but not ALL the tips. Only thing you can do is perhaps 'enhance' your approach.

Dittmar is the old-school grizzled veteran who was around when it was all much easier - when 'they' were just giving it away. But these days, you need to adapt -- the principles are still the same. -- imbalance is the time to get in involved - attempting to bag Jessica alba or Kate bosworth when stone sober is just too tough.

So, don't expect too much here, a few tips here and there should be plenty good for a playa with some existing game.

[Soultrader]

Closing this thread temporarily and pending review. Would like to keep this thread on topic.

[Soultrader]

Moderated Message:

Re-opening this thread. Off-topic comments have been removed. Please keep this thread on topic and refrain from personal attacks. The easiest thing to do is simply use our ignore feature if this thread does not benefit you. Thank you for your understanding.

[Kiwi]

On topic: We keep seeing regurgitated advertising charts posted in thread after thread. Same ones again and again. It would seem reasonable to expect that we would see new charts from time to time. Evolution in action.