| The Wyckoff Forum Welcome to the Wyckoff trading forum moderated by DbPhoenix and gassah. |
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![]() Join Date: May 2008 Location: Belgium Posts: 1,453 Thanks: 597
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Blog Entries: 60 | Not sure where to post this exactly, but as it's volume related the Wyckoff Forums is a good place to do that... although perhaps a new thread no volume should be initiated? Anyway, moderators are free to move this post if they feel it's more approriate elsewhere. Found this interesting article refering to the "crap volume" that has been mentioned several times in 'Riding the Wyckoff wave' thread. "Typical daily volume at the New York Stock Exchange has fallen to between 1.1 billion and 1.2 billion shares a day from around 1.5 billion shares in mid-March. Marc Pado, a Cantor Fitzgerald U.S. market strategist, said the past two months' levels are typical of summer holidays starting "pretty much after the kids get out of school." [-> ehm, right ]"On Nasdaq, volume has slumped in the last two months to around 800 million shares a day, after running close to an average last year of 1.4 billion shares. Trading in previous years has not dropped off until after Memorial Day, the unofficial kickoff of the U.S. summer holiday season. This year, NYSE volume has held below its 200-day moving average of about 1.53 billion shares since April 2, the longest such below-par streak in at least 13 years. At the Nasdaq, prime exchange volume has been below its moving average since March 24, the longest such streak in 16 months. Full article here: http://www.guardian.co.uk/business/feedarticle/7531703 Last edited by DbPhoenix; 10-27-2009 at 03:25 PM. | ||
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![]() ![]() Join Date: Feb 2008 Location: USA Posts: 1,797 Thanks: 329
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Blog Entries: 31 | Re: Volume Quote:
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![]() Join Date: May 2008 Location: Belgium Posts: 1,453 Thanks: 597
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Blog Entries: 60 | Re: Volume Quote:
I might as well throw a question in the air then... how does one know the volume signals a lack of participation from the buyers or signals a situation where price rises because most of the supply has been removed? Another Q: The person from the article mentioned "summer volume"... how do we interpret volume from different time periods? Most of us will be wary of lunch time because the lack of any decent volume may be nothing more than an illustration that the big boys are having their break... But what about the impact of seasons and what about comparing volume from year to year? Volume now is on a whole different scale than, say, 20 or 50 years ago... | ||
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![]() ![]() Join Date: Feb 2008 Location: USA Posts: 1,797 Thanks: 329
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Blog Entries: 31 | Re: Trend Note that it's important to place this within the context of what's being traded. If one is "trading" a largecap fund favorite over the longer term, the volume differences may be so minute as to be almost undetectable. And yet the stock moves. At a snail's pace, maybe, but it moves. But an intraday trade of something illiquid will provide a different picture. Then there are futures. And forex. And ETFs. Much is written about volume that is misleading. This arises out of seeing volume as an indicator, which in turn is the result of plotting it as a bar. But volume simply tracks trader behavior (which is why I'm more interested in the volume of advancers v the volume of decliners in the indices rather than "volume" in them as a whole). Focusing on that will help the trader put it in its place. Last edited by DbPhoenix; 10-27-2009 at 01:29 PM. | ||
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imagoodboy (05-30-2010) | ||
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![]() | Re: Trend Quote:
Understanding his concept may relate to 'behavior' ...when traders are actually putting the money into or the taking money out of the trade. | ||
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| | #6 | ||
![]() ![]() Join Date: Feb 2008 Location: USA Posts: 1,797 Thanks: 329
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Blog Entries: 31 | Re: Trend Quote:
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![]() | Re: Trend Barros making swing volume comparisons within trends. | ||
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