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Volume Price Level Trading

  • #141
  • Jan 9, 2013 9:36am Jan 9, 2013 9:36am
The Volume indicator would probably be the key to the Grail if it would indicate the inter bank volume. Unfortunately it indicates the volume of trades made by the traders working with the particular dealer. The Volume indicator will be different for each dealer and that makes it useless.
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  • #142
  • Jan 9, 2013 9:44am Jan 9, 2013 9:44am
Quoting V_s
The Volume indicator would probably be the key to the Grail if it would indicate the inter bank volume. Unfortunately it indicates the volume of trades made by the traders working with the particular dealer. The Volume indicator will be different for each dealer and that makes it useless.
What a complete waste of your time commenting the above statement, its not constructive and has no useful information for other users. Its clear you have not tried the method but already saying it wont work.

. He has already been over this. He states the indicator is showing signs of interest in a price level. If the volume increases its obvious and makes sense people are interested in that price.
  • #143
  • Jan 9, 2013 10:05am Jan 9, 2013 10:05am
It doesn't matter what volume measures (in tems of broker ticks, trades, dollars, etc) as long as it remains consistent with price. When, I say consistent, I mean that the broker is always using, say trade volume, and doesn't switch it up half way through your day. So, not likely that the broker is going to change what they measure in volume any time soon.

Price and volume moves together do mean something. Volume is a relative measurement, no different than any oscillator indicator. Volume levels do not tell you "how much" price moves, price moves tell you how much price moves.

The reason this is called Volume Price Level Trading is because when price moves towards/away from a price level, volume (interest) in that price level will increase or decrease.

If you don't like volume, you can use any relative indicator to do the same thing. However, I use volume because it is so simple and quick...and most of all, it works reliably and consistently...and in trading for a liviving, that is what you want the most.

I have no doubt people will see volume and poo-poo all over volume. Because all they see is volume and never look at the relationship between volume and price together and how it works when crossing different price levels.

So yes, you are correct - volume by itself is useless. However, this forum is not about volume by itself.



Quoting V_s
The Volume indicator would probably be the key to the Grail if it would indicate the inter bank volume. Unfortunately it indicates the volume of trades made by the traders working with the particular dealer. The Volume indicator will be different for each dealer and that makes it useless.
  • #144
  • Jan 9, 2013 10:41am Jan 9, 2013 10:41am
This thread is music to my ears, this is the way I'd like to trade. Keep on Spudfyre...
The hardest thing for me is to forecast what price will do (will go up to upper price level or down) between the levels ...
  • #145
  • Jan 9, 2013 11:11am Jan 9, 2013 11:11am
Quoting marine1983
What a complete waste of your time commenting the above statement, its not constructive and has no useful information for other users. Its clear you have not tried the method but already saying it wont work.

. He has already been over this. He states the indicator is showing signs of interest in a price level. If the volume increases its obvious and makes sense people are interested in that price.
Marine jan,

I tried using volumes and found its uselessness. My post is rather constructive because it helps people to save time. I just let you know that the indicator shows the number of deals concluded by a couople of thousand traders, included newbies, who work with that particular dealer. Then it is your choise to rely on that statistics or not. And again, if the indicator would indicate the interbank contracts that would be excellent. Unfortunately it does not.
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  • #146
  • Jan 9, 2013 11:18am Jan 9, 2013 11:18am
Quoting Spudfyre

I have no doubt people will see volume and poo-poo all over volume. Because all they see is volume and never look at the relationship between volume and price together and how it works when crossing different price levels.
Well, not for nothing but you've got people "poo-pooing" over every subject here. Especially volume (except the VSA folk) because that's what they're told.

"Forex isn't a centralized market so the volume is meaningless"

Personally, I always begged to differ since, if it were useless, brokers wouldn't waste the time offering it - I could be wrong.

But to say that out of the many tens-of-thousands of Forex traders out there, to assume that not a single one has found value in tick volume seems, for lack of a better term, ignorant. Folks said the same thing to those of us who worked over in the Market Profile thread but people still use it and it helps them see the market in a way that makes them money. I think that's what people miss about this; it's all about perception.

For example, Spud refers to volume as "interest" which makes it easier for him to perceive the market. I got a friend - he's old school - who refers to them as "speed bars". Different strokes for different folks I say. I, for one don't see how people can trade planetary cycles but I'd never knock someone for doing it. You see a lot of that here on FF, folks knocking others for the way they trade. Well, what business is it of yours? Poo-poo on them!
  • #147
  • Jan 9, 2013 11:22am Jan 9, 2013 11:22am
Quoting V_s
Marine jan,

I tried using volumes and found its uselessness. My post is rather constructive because it helps people to save time. I just let you know that the indicator shows the number of deals concluded by a couople of thousand traders, included newbies, who work with that particular dealer. Then it is your choise to rely on that statistics or not. And again, if the indicator would indicate the interbank contracts that would be excellent. Unfortunately it does not.

Just curious, but do you have a better way of trading that incorporates any logical way and method of trade executions that works and is consistent? If you do please Im me and let me know.
  • #148
  • Jan 9, 2013 12:04pm Jan 9, 2013 12:04pm
I have been a student of volume and price trading for a few years now, and this is the most clear and concise description of how to use price and volume to trade. TAKE ADVANTAGE!

Here is my trade this morning using the method Spudfyre outlines in this thread. I have not used my knowledge of volume trading or a combination of other volume methods to take this trade. I just simply followed his instruction to look for those things he outlined and made my trade.
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  • #149
  • Jan 9, 2013 12:11pm Jan 9, 2013 12:11pm
Quoting V_s
Marine jan,

I tried using volumes and found its uselessness. My post is rather constructive because it helps people to save time. I just let you know that the indicator shows the number of deals concluded by a couople of thousand traders, included newbies, who work with that particular dealer. Then it is your choise to rely on that statistics or not. And again, if the indicator would indicate the interbank contracts that would be excellent. Unfortunately it does not.
The fact that volume remains relatively consistent from one major spot fx broker to another and is also consistent with fx futures volume just further demonstrates it is useless, random data that just happens to show the same information -- it is all coincidence and we are all destined to lose our money. You are very smart. Now go away.
  • #150
  • Jan 9, 2013 12:30pm Jan 9, 2013 12:30pm
There are countless people across this forum and other forums that think volume or rather Tick volume is useless, this argument has been hashed out numerous time over the years, If it makes sense to you use it, If it does not then just go and find something that does make sense to you and prosper with it, but please quit rattling on and on and on.

Simply read what Spud has said, then try to wrap your tiny Mellon around it and make the best effort you can, ON A DEMO ACCOUNT, until you can master the method.
  • #151
  • Jan 9, 2013 12:38pm Jan 9, 2013 12:38pm
Quoting jls
The fact that volume remains relatively consistent from one major spot fx broker to another and is also consistent with fx futures volume just further demonstrates it is useless, random data that just happens to show the same information -- it is all coincidence and we are all destined to lose our money. You are very smart. Now go away.
If you do not like my post why just not to ignore it? Your aggressive reaction only indicates lack of inteligence.
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  • #152
  • Jan 9, 2013 12:42pm Jan 9, 2013 12:42pm
Quoting V_s
If you do not like my post why just not to ignore it? Your aggressive reaction only indicates lack of inteligence.
On that note, if you don't like the trading methodology, why not ignore the thread?
Your participation in it only indicates your lack of intelligence.
  • #153
  • Jan 9, 2013 12:57pm Jan 9, 2013 12:57pm
Quoting Bilstein
On that note, if you don't like the trading methodology, why not ignore the thread?
Your participation in it only indicates your lack of intelligence.
If you guys think you are intelligente just ignore my recommendation and do the way you prefer. I still do not understand why you assault people? Are you in a climax age?
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  • #154
  • Jan 9, 2013 12:59pm Jan 9, 2013 12:59pm
Quoting V_s
If you guys think you are intelligente just ignore my recommendation and do the way you prefer. I still do not understand why you assault people? Are you in a climax age?
You're right. Let's put this tool on ignore and get back to the topic at hand.
  • #155
  • Jan 9, 2013 2:16pm Jan 9, 2013 2:16pm
Keep reading...I'll keep going over it.
P.S. I no longer call it forecasting where the price will go. I prefer to thing of it as evaluating, reading, justification for a decision. I find if I use "forecast" I let myself off the hook sometimes to be a little lazy and start guessing.
I know it is just words, but I find it keeps me better focused - may just be me.

Quoting m4ntas
This thread is music to my ears, this is the way I'd like to trade. Keep on Spudfyre...
The hardest thing for me is to forecast what price will do (will go up to upper price level or down) between the levels ...
  • #156
  • Jan 9, 2013 2:17pm Jan 9, 2013 2:17pm
Quoting Bilstein
Well, not for nothing but you've got people "poo-pooing" over every subject here. Especially volume (except the VSA folk) because that's what they're told.

"Forex isn't a centralized market so the volume is meaningless"

Personally, I always begged to differ since, if it were useless, brokers wouldn't waste the time offering it - I could be wrong.

But to say that out of the many tens-of-thousands of Forex traders out there, to assume that not a single one has found value in tick volume seems, for lack of a better term, ignorant....
Hi Bilstein,

Spot On !!!!

Yes, the "poo-pooing" of ideas, methods and systems is pervasive here on FF... Some are downright ugly about it. I amazed at how fast it can happen in a new thread.

In my opinion it is a "wiring problem”... This incredible need to be right and their frustration with not realizing they are their own worst enemy. Trading is 90% mental and 10% method (IMHO). When I started back in 99' I was one who did not understand the mental side of trading... Cost me a WHOLE lot of $$$$$$...The requirement to "think differently" is very difficult for most to even understand ... let alone accomplish. I still mess it up ( more than I would like ) due to my own flawed thinking.

One's attitude tells me a lot about their ability to trade. Sadly, with that poo-pooing attitude they will never become the trader they condem others for trying to be.

The Smart Money realizes this and trades accordingly.. The Smart Money profits.. the Dumb money ( those who rag ) lose.

Just my 3 pips

TSD
  • #157
  • Jan 9, 2013 2:23pm Jan 9, 2013 2:23pm
Nice trade!

Quoting Baillie
I have been a student of volume and price trading for a few years now, and this is the most clear and concise description of how to use price and volume to trade. TAKE ADVANTAGE!

Here is my trade this morning using the method Spudfyre outlines in this thread. I have not used my knowledge of volume trading or a combination of other volume methods to take this trade. I just simply followed his instruction to look for those things he outlined and made my trade.
  • #158
  • Jan 9, 2013 2:55pm Jan 9, 2013 2:55pm
Hi Spud

I'm really happy to see you back. You suddenly disapeard years ago and now your back. :-)
I studied your Stochastics threads but never had a chance to get my questions answered.
Your contribution here is very valuable!

So I will not hesitate to ask my questions as long you're around!

I got it on how to place the price levels.

But I seem to be a little dense on understanding how you determine if a level will hold or if it will break through it.
I have a hard time deciding on wether I should go long or short when approaching a level.

I hope you will go into this again. (please)

Thanks


PS. here a link for the guys that disbelieve the tick volume thing. Traded Volume and Tick Volume is highly correlated!
http://lib.store.yahoo.net/lib/yhst-...CVN050110.html
  • #159
  • Jan 9, 2013 3:10pm Jan 9, 2013 3:10pm
Quoting colbru
PS. here a link for the guys that disbelieve the tick volume thing. Traded Volume and Tick Volume is highly correlated!
http://lib.store.yahoo.net/lib/yhst-...CVN050110.html
The common factor(s) I've noticed in many, many volume-related threads is that the folks who dog it are the ones who can't (won't) understand it. They may try it and realize they have a few losing trades here or there then next thing you know, the OP is an idiot for suggesting that volume can be used in Forex. To me, if you're the type of idiot who goes from thread to thread dissing on peoples' trading methods, you're just a "grail-er" looking for a way never to be wrong. Some folks get passed that stage of trading for a living. Sadly, most do not - about 90-95% of them.
  • #160
  • Jan 9, 2013 3:41pm Jan 9, 2013 3:41pm
Hm... basicly we're determining S&R based on high interest price levels?!
Thoughts are things
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