Volume good, bad gut feeling (technical)

[lukeaye]

Thats not really even the start of a plan. Or if it is its a good trap. You haven't listed the most important thing. What test to prove your plan is possible/realistic/survivable.

How are you meant to test, if you dont come up with a strategy to test?

Obviously im being very general, you can add thousands of words to each point i've made?

So you have now decided to help have you?

 

[tech/a]

I don't follow . Could you explain some more? If there is perceived value on both sell and buy sides what will move the price from that value?

In balance.
Take a long situation.
Price stalls yet volume rises sharply price keeps resisting at a level.
If after a few hrs/days whatever volume on one side dries up--say sell side then price will move further up with little volume.
There may also be a major influx of buyers who push price above resistance---as in a gap.Again buyers have over come sellers.

The reverse can be seen where sellers overcome buyers.
In the high volume little movement areas we need to either look at lower timeframes to gain a better picture or wait until it is evident in the timeframe we are trading.

 

[Trembling Hand]

So you have now decided to help have you?

I'm pretty sure I told him to stick to his initial stop, make sure that his MM is correct (which by the sound of his emotive post its not) and that looking at the market depth the way he is is rubbish. AND when he is out of the trade I will happily add more.

WTF!! what do you guys want? For me to take responsibility for someone else's trade? Then what from there? start handing out $$'s if he sells on my opinion and it gaps up on the open by 10% in two days.

 

[lukeaye]

I'm pretty sure I told him to stick to his initial stop, make sure that his MM is correct (which by the sound of his emotive post its not) and that looking at the market depth the way he is is rubbish. AND when he is out of the trade I will happily add more.

WTF!! what do you guys want? For me to take responsibility for someone else's trade? Then what from there? start handing out $$'s if he sells on my opinion and it gaps up on the open by 10% in two days.

That exactly what i want you to do. Please pm me details

 

[Trembling Hand]

That exactly what i want you to do. Please pm me details

Yes I'm not surprised. I've seen your trading. :

 

[Sir Osisofliver]

That exactly what i want you to do. Please pm me details

Yes I'm not surprised. I've seen your trading. :

LOL - *puts a mark on TH's side of the ledger and gets the popcorn*

 

[lukeaye]

Yes I'm not surprised. I've seen your trading. :

Im not trying to start an arguement, because we all know you are by far a more experienced trader then i, but your comments earlier, are far from helpful. I would expect more form you is all.

 

[tech/a]

Yes I'm not surprised. I've seen your trading. :

Sorry Luke but thats funny its shows humor something I was certain T/H was in capable of.

 

[nunthewiser]

Im not trying to start an arguement, because we all know you are by far a more experienced trader then i, but your comments earlier, are far from helpful. I would expect more form you is all.

And i am not here for an argument either BUT your comments " trying to help " had already been covered by TH and others already in this thread so basically unless rehashing stuff already posted is classed as helpful i suggest you look at yourself first before trying to attack people that have helped but with a more colourful manner

Thankyou.

 

[lukeaye]

And i am not here for an argument either BUT your comments " trying to help " had already been covered by TH and others already in this thread so basically unless rehashing stuff already posted is classed as helpful i suggest you look at yourself first before trying to attack people that have helped but with a more colourful manner

Thankyou.

Can you point out where that help was?

Back to handing you money over to the markets nun.

Anyway, this thread has nothing to do with me, i couldnt be bothered.

Sorry i will step aside as everyone so eagerly helps.

 

[nunthewiser]

Can you point out where that help was?

Back to handing you money over to the markets nun.

Scroll back darl.

LOL re you thinking you know me .

last post from me to you as personally think you need to grow up a lil and read ppl,s posts for what they are instead of becoming emotionally blinded everytime someone disagrees with you.

Thankyou

 

[lukeaye]

Scroll back darl.

LOL re you thinking you know me .

last post from me to you as personally think you need to grow up a lil and read ppl,s posts for what they are instead of becoming emotionally blinded everytime someone disagrees with you.

Thankyou

Read back through this thread nun, nearly every post has some sort of hidden feeling of god your stupid, what are you doing? And a minute snipet of information which is highly unlikely to help him in any way whatsoever.

I get emotionally involved when i see somebody belittled for not knowing any better.

As i said. Ill step aside and im sure that he will get alot from this thread and his trading will improve 10 fold with the advice he has been given.

 

[nunthewiser]

What does "high buy pressure to sell" mean? I hope you are not thinking that just cause the Depth is stuffed with buy orders compared to sell orders that actually translates to buy/sell pressure??

KEEP YOUR CASH . BUY A PENCIL AND PAPER OR FIND A DEMO ACCOUNT.

Mate, I'm a complete newbie and even I can recognise that you have no idea what you're doing.

My gut instinct would tell me that if the volume is going up and the price is going down, that just means that the stock is **** and there are lots of people selling it.

I'd stop trading real money if I were you. You said that you've been trading on paper for a while. How did that work out for you???

Highlow - In regards to your volume question there are many things that can create the circumstances you describe. Here is an example...

Lets say you are an institutional buyer (or Seller) and you have a large amount of volume to fill. Enough volume that your order alone will move the price action.

Do you a) Make your trade visible to the market and put all your volume on at once, or
b) Hide your volume and have an operator work the order in small lots over a few days or weeks?

Welcome to hidden volume - every broking house around the world does it.

Stochastic oscillators... know how they work? They essentially take the price action and compress all values between a 1-100 range. The indicator therefore cannot go above 100. The price action of the share however is not similarly limited, there are no artificial mathmatical fetters on the price action.

The upshot of this is that a stochastic oscillator will quite frequently give you false selling signals, and will also quite frequently give you incorrect signals to "overbought" shares. The same is not true however on the "oversold" side of the scale. As a rule of thumb, you should never use a stochastic for an selling signal, only to confirm a buy signal indicated by the price action.

Hope that's helpful.

Cheers

Sir O

High volume with little movement in the direction of the volume (buying or selling)
Can be interpreted as absorbtion of Sellers OR Buyers as the case maybe.
An instrument will not continue to move in a direction until the absorbsion of one exceeds the other.There needs to be in balance in percieved value for price to move.

You will note volume drying up and range increasing once absorbtion is complete.

If you have a more than cursory interest in volume then a read of VSA principals would be of interest.

http://www.tradeguider.com/education/mtm.aspx

Ahha Yep no one helps around here ........... unreal.

 

[nunthewiser]

Market depth isn't a bad indicator to use, but it's not that accurate. For example, there may be more sellers and more selling volume, but it might not be at the current price. There may be a lot of sellers waiting for it to hit xxx level.

Also, look at candles and see if the bid has been hit. This would indicate some selling: the candle should be red.

In balance.
Take a long situation.
Price stalls yet volume rises sharply price keeps resisting at a level.
If after a few hrs/days whatever volume on one side dries up--say sell side then price will move further up with little volume.
There may also be a major influx of buyers who push price above resistance---as in a gap.Again buyers have over come sellers.

The reverse can be seen where sellers overcome buyers.
In the high volume little movement areas we need to either look at lower timeframes to gain a better picture or wait until it is evident in the timeframe we are trading.

Forgot these also ?

From where i am sitting Plenty people trying to help .........



MODS. sorry about the rehash of posts but thought it might be a good idea to point out that there has been some EXCELLENT help here so far and just because people whine about something it does not make it true

cheers

 

[lukeaye]

Ahha Yep no one helps around here ........... unreal.

My point is, after his intelligence has been insulted for consecutive posts, he probably has not read anything else? notice how he hasnt posted since?

Secondly, though there are some good pieces of information between the other posts, there isn't enough there to a new trader to be of any help. He needs to be referred to places where he can get better education. Like books, or other journals, like tech did.

Not arming him with a tiny bit of knowledge for him to go and blow some more money. THAT is my point

 

[Trembling Hand]

Secondly, though there are some good pieces of information between the other posts, there isn't enough there to a new trader to be of any help. He needs to be referred to places where he can get better education. Like books, or other journals, like tech did.

Not arming him with a tiny bit of knowledge for him to go and blow some more money. THAT is my point

BS.

The only thing that matters right now is his stop. All the other crap can wait. If its going against him beyond what he's stop is, it going to help sweet F all getting onto Amazon and ordering adaptive analysis.

Or if his money management/position size is screwed up reading a book anit going to help his "bad gut feeling" TODAY.

 

[tech/a]

BS.

The only thing that matters right now is his stop. All the other crap can wait. If its going against him beyond what he's stop is, it going to help sweet F all getting onto Amazon and ordering adaptive analysis.

Or if his money management/position size is screwed up reading a book anit going to help his "bad gut feeling" TODAY.

Yeh thats true seeing its Master the Markets that will help the volume issue although Adaptive Analaysis wouldnt go astray either.

The solution to every problem isnt 1000s of hrs of practical theory---there are a lot of mice and Monkeys very glad of that!

Yeh it will help his gut feeling by confirming his observation. His loss is likely to be more than a book or 2 that in itself seems to be a great teacher (a loss) particularly if its common place and he doesnt know what his application of his "method" is likely to return after 1000 trades.

If he doesnt know how to skew his expectancy short and long term then it matters not what is said here on an individual topic (volume).

 

[lukeaye]

BS.

The only thing that matters right now is his stop. All the other crap can wait. If its going against him beyond what he's stop is, it going to help sweet F all getting onto Amazon and ordering adaptive analysis.

Sorry after reading your post, i realise that you meant ealier that RIGHT NOW the only thing you need to worry about is your sotp. Which i agree with 100%. I take that back TH i apologize.

But i was talking more from a future education process.

 

[brty]

TH's,origanal comments....

Actually mate I would prefer to say nothing more while you are in the trade. Stick to your plan, hopefully you had one and your MM is under control.

Then when its over I will throw my in.

....really are the most appropriate.

A new trader will always be highly emotional about a position. If the 'advise' spoke to the new trader about getting out now, and he acted on it instead of the original plan, his feelings would be about that so and so giving out false info (even if subconsciously).

Best to dissect a trade/trade plan foundation when money is off the table, especially for a new trader.

brty

 

[Trembling Hand]

TH's,origanal comments....

....really are the most appropriate.

Glad there is enough brilliance scattered around this forum to recognise my own super duper brilliance