SOCRATES said:Because the use of time has been changed again from causative to subjective, as the bull phase takes hold. .
DrBungle said:I find your posts about causative/subjective volume very interesting. It is actually something I have been thinking about myself along the following possibilities that can unfold:
1. Volume causing price change
2. Volume causing the lack of price change
3. Price change causing volume
4. Lack of price change causing volume
This really helps to understand what is happening and is a good example of how one must not take things "at face value" but must relate them to a broader context and to see the forest from the trees. This kind of thinking is necessary to see beyond the textbook chart patterns and to really understand what is unfolding in front of our eyes - looking INTO the chart and not AT it - as you put it.
Keep it up!
Bungle
DrBungle said:OK here it is from 12.15 or so. Sorry about that...
Bungle
SOCRATES said:Now turn your attention to the chart. Look into it carefully. Don't look at it. Look into it.
Look at the second bar. It has a narrow spread, but the volume underneath it underpinning this result is huge. It is the greatest recorded volume in the whole chart, is it not ? Here lies the clue from which all subsequent market action develops.
Now observe that the third bar opens, lifts a little bit(which is a trap) and then collapses to close at or near the low. Why is this ?
Simple. If the previous bar (2) with all that huge volume underneath to underpin it were buying
the bar that follows it(3) would have rocketed north would it not ? .
Finirama said:Also, as a suggestion, maybe better to post real time analysis (whenever this takes place) on the 5 min chart to overcome the problem of the 1 post/min constraint??
Skimbleshanks said:Tell you what, Thirteen, when I do finally make it, I'll splash out on a new $10 keyboard for you. Yours appears to have both shift keys broken. Teenagers, eh! :cheesy:
I fundamentally agree with this point.BBB said:Ford - The only answer to that one depends on the market. You've got to adjust to what the market is doing.
I've mentioned this several times but unfortunately, most would rather turn this thread into a discussion on analysis of the PAST, NOT trading. The two are very different.
yes you are correct, but my question does ultimately find its way to helping myself answer these questions, I know I asked a specific question without really elaborating, I probably should have been more specific.How, when and why should you reverse your position - these are the types of questions you should be asking. How does volatility affect my approach? Should I even be trading this market or that market?
I'm not sure who is grovelling but I think it's worth me being polite and thankfull towards those that are interested in helping me who is in effect a complete stranger. I'm not into ego myself, I'm just a guy looking to improve his trading. I always enjoyed your posts and found them helpful when they related to trading, it will be sad to see you stop contributing.All this grovelling, zero comprehension and ego that this thread has turned into is unfortunate. I'm off.
Enjoy not being worthy of your own gumption folks. Think and ye shall find!
ford said:My pleasure.. its the least I could do considering the massive collection of posts of yours on this forum that have helped me greatly.
Perhaps it might be best though if SOCRATES posted his own chart with annotations?
harryp said:Socrates
Many years ago I saw a broker cross [simultaneously buy and sell ] eight thousand lots in the ftse futures pit at LIFFE. This trade accounted for more than 20% of a busy days business {I am not sure if it was 8000 but it was definitely 20% of the total }
At the end of the week I read a report from a respected analyst in which he ascribed the markets move to the significant volume that had taken place on the day I mentioned. Had he seen what I had, I doubt he would have come to the conclusion he did
Maybe something similar happened on the second day that you hilite as the key to the move ?
Finirama said:Don't trade the DAX, but I'm sure you'll agree that volume would not have been necessary to spot the top. Clear 5 waves up with a key reversal bar is quite clearly marks the top and a short....does it not??
barjon said:Socrates
I come before you humble in my ignorance and virtually devoid of the intuitive skill to lift me from the herd.
You say that the high volume could not have been buying, but doesn't all selling have to be matched by buying (albeit Star Chamber selling and herd buying) and vice versa? So all I know from the first bar is that an unusually high amount of supply has arrived which has been easily soaked up by the demand? The next couple of bars show there were still buyers (presumably in the herd) willing to bid up until greater supply is fed in (presumably by Star Chamber)? Subsequently the herd is spooked and turns tail.
In earlier posts on this thread Skim has shown how price action/volume can indicate what the Big Boys (and your Star Chamber ) are up to and I wondered if the distinction was relevant in your excellent analyses of events.
jon