Price, (Volume), Support, Resistance, Demand, Supply . . .

[dbphoenix]

As a student of Albert Labos I was trained to use volume spread analysis and I believe it is the only way to trade, having used it ever since. Whilst I know the name may be like a red rag to a bull ( and yes I paid £5,000 too ), the actual techniques he taught were perfectly valid. Whether he 'borrowed' them from Tom Williams is another matter!!!

Volume tells you the activity of the professional money in the market, and the price actions tells you what the result is based on that activity. A move up on low volume is clearly a trap up move. Combine the above with an in depth knowlegde of candlestick analysis, and you have the only way of trading which forecasts likley future price movement. It has taken me years to learn how to trade using these techniques, but I personally would not trade in any other way. Ironically I now trade currency full time so to rely on my candle reading skills alone with no volume to confirm the move!!

If you would like further information there is a page on my personal web site which explains the principles in more detail - yes it is all free - at www.making-bread.co.uk

I agree with your overall philosophy, particularly Point 2: Do Not Waste Your Money On Training Courses Of Any Type . . . They Will Teach You Nothing You Cannot Learn For Yourself.

Paying Albert 5000 pounds for something you could have had for less than 100 may not have been the wisest course. Of course, if you're happy with the results, that's all that matters.

Db

 

[Patrik]

Was told that most of what´s in the chartist files above are not correct. Opinions?

 

[firewalker99]

A move up on low volume is clearly a trap up move.

Hmm... I've always considered a move up on relatively low volume "good buying". A move up which occurs on extreme volume is usually not sustained. That's what I have experienced :?:

 

[neil]

Free Forex method

Here's a free system that works off price action. I have not tried it yet but it might appeal to the testers amongst you.

http://forums.babypips.com/free-forex-trading-systems/1487-between-40-100-pips-per-day.html:idea:

 

[Patrik]

Can you say this is most often about hunting for stops that trigger a reaction? That´s what cause most differences in pressure if i got that right. More than new buying or shorting

 

[justinefx]

Nice thoughts...Traders!

Hi Patrik,
its all right about hunting for stops..
But the most important funda is to realise you exit points.
Always keep in mind your exit ways and never get stuck with an old trade for long...in spite of the progress..
But new buying is definitely beneficial.

 

[Iwy09tr]

Hi,
New buyings ... For me it's a lure for to push a trade, to place sometimes unnecessary at all orders just to compensate for nothing happening. And then hunting for stops begins.

 

[dbphoenix]

In 1936, British economist John Maynard Keynes gave the best description of the stock market I've ever heard. He said stock market investors are like judges in a beauty contest. But the idea of this beauty contest is not to pick the prettiest girl, but rather to pick the girl that all other judges will think is the prettiest.

This simple metaphor is profound because it reveals the truth: For all of our study of the economy and companies, it is subjective perception -- not objective reality -- that sets stock prices.

And it's perplexing because, as Keynes pointed out, all of the judges are fully aware of the true nature of the contest and act accordingly. Each judge knows that he's a player in an fabulously complex game of psych and double-psych, an infinite regress of figuring out what the other guy is thinking you're thinking he's thinking you're thinking he's thinking, and so on and so on

-- Don Luskin

 

[firewalker99]

In 1936, British economist John Maynard Keynes gave the best description of the stock market I've ever heard. He said stock market investors are like judges in a beauty contest. But the idea of this beauty contest is not to pick the prettiest girl, but rather to pick the girl that all other judges will think is the prettiest.

This simple metaphor is profound because it reveals the truth: For all of our study of the economy and companies, it is subjective perception -- not objective reality -- that sets stock prices.

And it's perplexing because, as Keynes pointed out, all of the judges are fully aware of the true nature of the contest and act accordingly. Each judge knows that he's a player in an fabulously complex game of psych and double-psych, an infinite regress of figuring out what the other guy is thinking you're thinking he's thinking you're thinking he's thinking, and so on and so on

-- Don Luskin

I just knew my professors left out the best parts when they taught Keynesianism :smart:

 

[dbphoenix]

Posted these in my group, but they may be of interest to others, particularly those who don't use indicators. They show the most likely zones of support in the NDX, DJIA, and SPX.

 

[erierambler]

Posted these in my group, but they may be of interest to others, particularly those who don't use indicators. They show the most likely zones of support in the NDX, DJIA, and SPX.

These charts posted are linked to your group and cannot be seen by the outsiders. Could you repost?
erie

 

[dbphoenix]

Better?

 

[erierambler]

Better?

Yessir......

 

[Brooklyn NYC]

Does anyone have this thread saved to a PDF file or anything?

Also any other Db's threads saved to a file?

Thank you!!

 

[Trader2Win]

Support and resistance

Sam seiden has the inside on Support Resistance

Read all his articles (+-12?)
and watch his videos (+-5)

Articels

Sam Seiden - Resources | Trading and Investing for how the Markets Really Work!

Vids

FXstreet.com Live Sessions Archives

 

[Jaydee]

I've found them!

Does anyone have this thread saved to a PDF file or anything?

Also any other Db's threads saved to a file?

Thank you!!

E Book on Price Volume Action

You need to sign up for membership though.

 

[darshan17]

AMibroker formula for VSA [ vpa]

hello all memebers ,
this is my first post ..and i saw there is great discussion on volume,proce ,analysis....,
i came across to a blog ..vpanalysis.blogspot ..the author has posted amibroker formula for VSA ..[ vpa - volume price analysis ] and it s simply susperb...formula is with bar-bar analysis...which can be read [in details ] in intrepretation window ...,
as you all are very much interested in VSA ..i thought this might help ,
Thank you all

 

[PaulFX]

Here...I made a nice trial for the next week.:clap:

Regards

 

[TheRumpledOne]

VOLUME SPREAD ANALYSIS (VSA) is used successfully in the stock market. Read about VSA HERE. The article shows a forex example. There is a debate that VSA doesn't work for Forex because Forex is NOT a consolidated market and dealers would NOT give you accurate tick/volume data because you could then determine their volume flow. Finally, SMART MONEY is not trading with retail brokers.

A more in depth read on VSA can be found HERE

Others have coded indicators for VSA.

Someone sent me this LINK.

Stopping Volume Pattern (Emini 5 minute)

Professional profit taking is occurring when the following conditions are met:

* Volume is greater than the previous bar's volume
* Range is less than the previous bar's range
* A new high is made (in an uptrend) or a new low (in a downtrend), and
* Closes off the highs (in an uptrend) or off the lows (in a downtrend)

The reduction in the bar's range is the real key. It shows that additional selling (in an uptrend) or additional buying (in a downtrend) is keeping the bar's range low. So Professional traders are taking profits and/or "fading" the current trend.

You will almost always see Stopping Volume patterns leading up to a market turning point. However, if the trend is strong it might take several Stopping Volume patterns in a row to slow the trend. Remember, most turning points are Stopping Volume patterns, but not all Stopping Volume patterns are turning points!

I modified and created some volume spread analysis indicators ( SEE CHARTS ABOVE )

 

[ljyoung]

This is quite excellent and will allow a trader to get to the meat of a run, then actually take some. We are all in Mr. Tom William's debt. The point about increased volume with decreased volatility [(H - L) = range = volatility] is spot on. Another indicator of smart$ shenanigans is the opposite condition of decreased volume with increased volatility. Be assured that this is not a group of retail traders banding together to mark the price up. But be careful that you appreciate the context of such a move as it can be used both to presage a major price movement or as a fakeout.

lj