Tech/a on Technical Analysis
- Thread starter tech/a
- Start date
-
- Tags
- tech/a technical analysis
So, high vol clusters without a corresponding downmove in price action can be seen as bullish, whereas high vol clusters and big moves down are very bearish.
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,400
- Reactions
- 6,317
Not quite that easy
I’ll need more time to work through this
Just about to train for 3 hrs so won’t get a chance tonight
I’ll need more time to work through this
Just about to train for 3 hrs so won’t get a chance tonight
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,400
- Reactions
- 6,317
- Joined
- 14 May 2013
- Posts
- 309
- Reactions
- 274
Hi TA,
Do you still trade DAX or FTSE Futures?
Trying to try implement volume with technical signals into futures but finding it much harder than stocks, where I mainly look at break outs.
I think intra day shorts are easier to trade if you can find them.
Thanks
JJBinks
Do you still trade DAX or FTSE Futures?
Trying to try implement volume with technical signals into futures but finding it much harder than stocks, where I mainly look at break outs.
I think intra day shorts are easier to trade if you can find them.
Thanks
JJBinks
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,400
- Reactions
- 6,317
DAX JJ a couple of times a week
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,400
- Reactions
- 6,317
So Lets talk volumes
What constitutes volume of interest
Volume 5 x or more than the average daily volume over a month.
Or Under the same value. The bigger the better but anything well
over our under a normal volume should be investigated.
First thing we have to look at is where it is ------
Context of Volume in a chart.
(1) High volume and in particular if it is also supported by a gap and range
indicates a great deal of effort to move in a particular direction. (Bullish OR bearish.)
See labelled (1) This generally occurs after a longer period of consolidation.
In The bar labelled (2) we can see a smaller testing consolidation after the strong
move up. At the high of the range of the consolidation we can clearly (NOW) see
accumulation as Supply is met with Strong buying. The next bar rises easily and if you follow
the trend UP you'll notice the Dance of Volume as the stock rises and contraction of volume in
consolidations. When you are in a move this is what you want to see.
Look now at Bars (3,4,5,6) These bars show that supply is not taking part in the consolidation and until
it does price will remain at levels around the high prior to consolidation. This will also occur in Bearish
down moves of any depth.
So this first CONTEXT is in a bullish initial move.
The next is in a continuation of a move. Note that moves can move either bullishly OR bearishly WITHOUT
extreme volume or range. The exercise here is to talk about those times when volume is evident and is
in enough quantity for us to take immediate notice.
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,400
- Reactions
- 6,317
Patterns
and in particular tight and less than 20 periods (1 min to a Week)
Play important roles in Volume and range either within OR breaking
out of them.
Look for and monitor tight consolidations.
Continuation Volume
Next
" V " Bars and Patterns.
and in particular tight and less than 20 periods (1 min to a Week)
Play important roles in Volume and range either within OR breaking
out of them.
Look for and monitor tight consolidations.
Continuation Volume
Next
" V " Bars and Patterns.
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,400
- Reactions
- 6,317
Special Note
Volume will often Pre empt a move in either direction particularly
if there is little range. REVERSAL volume bars are at first difficult to spot.
And can be mis judged as accumulation or distribution when in fact is EXHAUSTION.
(Of either supply or Demand)
This becomes more evident during the discussion next.
Volume will often Pre empt a move in either direction particularly
if there is little range. REVERSAL volume bars are at first difficult to spot.
And can be mis judged as accumulation or distribution when in fact is EXHAUSTION.
(Of either supply or Demand)
This becomes more evident during the discussion next.
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,400
- Reactions
- 6,317
"V" Bars and Patterns
Much more to come on this topic as it is an important one.
Not only found at Tops and Bottoms these patterns can and
do occur in what appears to be middle of moves.
Like a great deal of Volume anomalies you will often find a CATALYST
When you see Excessive volume always check for a Catalyst.
Often this wont appear for a few days --- initially leaving you
without rhyme nor reason!
Much more to come on this topic as it is an important one.
Not only found at Tops and Bottoms these patterns can and
do occur in what appears to be middle of moves.
Like a great deal of Volume anomalies you will often find a CATALYST
When you see Excessive volume always check for a Catalyst.
Often this wont appear for a few days --- initially leaving you
without rhyme nor reason!
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,400
- Reactions
- 6,317
All I have time for Today
The Duck will return.
The Duck will return.
@tech/a, I struggle to interpret every single bar, particularly once I have entered a trade. It becomes all the harder to attempt to read each bar objectively. There are often conflicting "story" bars next to one another when it comes to PA and volume analysis.
In this chart below, you have pointed out a low volume day prior to "a.". However, on the day of "a.", volume increased a fair bit and price closed at the low. Both bars had a similiar range and I would have viewed bar "a." as bearish. Yet, the day after, there was a gap up, albeit on lower volume. I would still not have viewed this bar as particularly bullish. In such situations, are you simply waiting until you get a confirmation such as "b." before you read the "story" as bullish?
In this chart below, you have pointed out a low volume day prior to "a.". However, on the day of "a.", volume increased a fair bit and price closed at the low. Both bars had a similiar range and I would have viewed bar "a." as bearish. Yet, the day after, there was a gap up, albeit on lower volume. I would still not have viewed this bar as particularly bullish. In such situations, are you simply waiting until you get a confirmation such as "b." before you read the "story" as bullish?
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,400
- Reactions
- 6,317
Yes I totally understand
Each bar is NOT a signal
Each bar is an indication of what is happening
You would be aware of the lack of supply and as you say
Be suspicious of the next bar seeing supply return.
But as the next bar gaps up on little volume you have confirmation that
The last of the supply appears to be exhausted.
Bar 2 would have been a buy.
Hope this helps
Each bar is NOT a signal
Each bar is an indication of what is happening
You would be aware of the lack of supply and as you say
Be suspicious of the next bar seeing supply return.
But as the next bar gaps up on little volume you have confirmation that
The last of the supply appears to be exhausted.
Bar 2 would have been a buy.
Hope this helps
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,400
- Reactions
- 6,317
just j
Do you have a chart you would like to follow in real time?
Do you have a chart you would like to follow in real time?
APA. Dont really know how to read this chart. 4 days ago, price seems to have bounced off the VCB from Aug'18. Price today closed off low around support at 9.82 and vol is fairly high. It's possible that it is at an area of supply (Sept - Oct 18) so those traders who bought then are panicking today and selling, but buying has also stepped in today to allow a close off the lows.
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,400
- Reactions
- 6,317
JJ Firstly GUD
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,400
- Reactions
- 6,317
And APA
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,400
- Reactions
- 6,317
JJ Follow up after yesterdays trading.
I will continue with my thoughts on volume
as I get more time in the thread it self.
I will continue with my thoughts on volume
as I get more time in the thread it self.
