counter_violent
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Potential here for a moderate sell off ....starting tonight and continuing through tomorrow ...to all but wipe out the weeks gains...I M H O
SOCRATES
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What you mean is scorching not burning, as someone who gets really burnt is of no use to anyone including himself as the greater the wounds the greater the time and effort required for recovery. This is not a good idea at all. That is why I always insist on stops Stops make the difference between scorching and burning. Additionally it is not wise to go looking for ideas that will make everything more dificult as well.peterpr said:
I saw this this morning. I think it is disgraceful. It is not the first time this has happened. They have had a very long time to put their mechanism in order, but somehow do not seem to overcome whatever it is they ought to put right. I view it as a national embarrasment and a disgrace. You would expect these sort of capers in exchanges in the third world rather than here. Of course it is up to the participants not to complain but to act, by taking their business elsewhere as this will very soon wake up the Humpty Dumpties sitting on the wall in a row, and make them jump off the wall and get to their feet and get cracking to solve the problem.
Kind Regards.
SOCRATES
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Yes, I quite agree with everything you say, but you overlook the fact that here I am talking to people who are at different levels of proficiency. Those at the middle and top are well able to take care of themselves, those at the bottom are not so fortunate. Those starting are able to misdirect themselves very easily indeed. For these reasons these comments are directed at them, as everyone else I assume is able to multitask unimpaired and not influenced one jot by the opinions of others, or as a result of reading chit chat and gossip etc.,roguetrader said:
Kind Regards.
counter_violent
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RUDEBOY said:
Of course , we need both sides to make a market
User
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Trendie,
Not necessarily.
If you look at volume for indication of price action then this may only be one criteria out of many that may suggest the market is moving down.
What I'm trying to say is for e.g if you want to buy into the Dow Jones and you are looking at 5 different criteria's then on a given situation your other four criteria's may be suggesting 'buy' but volume may be suggesting No, don't buy. So if 4/5 is good enough for you then you may make the trade.....
If you only follow volume for confirmation to enter a trade then you would be saying 'No' to buying and Yes to selling.
The falling volume may mean that we have just had a decent downward move and at this moment in time investors are hesitant and scared to buy into the market. This doesn't mean that the market won't rise though. If we were to see 10600-700 then volume may prop up. Who knows how the price will move and how volume will move!
Trendie if we see a 100 point up move tomarrow then the volume may show up much stronger then the last three days. Personally I don't look at volume much but sometimes it can be worth noting as you've just said 'for confirming price moves'.
Not necessarily.
If you look at volume for indication of price action then this may only be one criteria out of many that may suggest the market is moving down.
What I'm trying to say is for e.g if you want to buy into the Dow Jones and you are looking at 5 different criteria's then on a given situation your other four criteria's may be suggesting 'buy' but volume may be suggesting No, don't buy. So if 4/5 is good enough for you then you may make the trade.....
If you only follow volume for confirmation to enter a trade then you would be saying 'No' to buying and Yes to selling.
The falling volume may mean that we have just had a decent downward move and at this moment in time investors are hesitant and scared to buy into the market. This doesn't mean that the market won't rise though. If we were to see 10600-700 then volume may prop up. Who knows how the price will move and how volume will move!
Trendie if we see a 100 point up move tomarrow then the volume may show up much stronger then the last three days. Personally I don't look at volume much but sometimes it can be worth noting as you've just said 'for confirming price moves'.
trendie
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thanks for your reply user.
I interpret that as the market is uncertain where to go. (low volume)
people are waiting for someone to make the first move.
if it noticeably (interpretative) drops, people will pile in with shorts, increasing volume.
if it noticeably rises, people will pile in with longs, increasing volume.
if that is so, we are at some cusp, some grey area, before a decisive move (either up to down) takes place, for others to follow.
(beginners attempt at analysis)
I interpret that as the market is uncertain where to go. (low volume)
people are waiting for someone to make the first move.
if it noticeably (interpretative) drops, people will pile in with shorts, increasing volume.
if it noticeably rises, people will pile in with longs, increasing volume.
if that is so, we are at some cusp, some grey area, before a decisive move (either up to down) takes place, for others to follow.
(beginners attempt at analysis)
SOCRATES
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user said:
This is not correct.
The main reason why prices go up on low volume and persist in doing so is attributable to stock shortage. If there is stock shortage in the market for whatever reason prices will go up. When another layer of volume is added, however thin, it just exacerbates the situation. Then all it takes is a clump coming the other way and Kataplonkie ! down it comes again. Overlooking these things can be very dangerous. You need eyes in the back of your head with these things, and a very profound understanding of how all of it works before it begins to make sense.
Kind Regards.
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Your talking textbook stuff here!
Let me just put your textbook notion into context. Your saying the last three days the Dow has risen and this has been on low volume which according to you is due to stock shortage? So what is the reason for this stock shortage? Stock shortage after majority of the big boys have been dumping from 10900 to 10400?
Its all down to interpretation: Another trader may think that the market tested solid support at 10400. We've moved higher and the low volume is due to traders being hesitant and scared if you like and could be waiting for confirmation of buying.
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trendie
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RUDEBOY said:
I would have thought overbought!! (this could explain my blood-red account balances)
the market has risen for 3 days, then given away the gains, and some in about 1 day.
twice in succession. (falling with greater ease than rising)
I am SHORT from 10,520. minimum target 10,380.
(I look really great in my kamikaze bandana)
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SOCRATES
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Everyone it seems looks for "confirmation". This type of thinking causes late entry. Late entry is not entry at an advantage. By the time whatever it is has to be confirmed, it is too late. The root causes of price changes are imbalances between supply and demand, and not volume. Volume just records the amount of activity attributable at that time, no more, no less. It may appear at times as if volume is the cause of moves but it is not so. This is why slavish attention to volume only is not enough. The big players do not enter because of volume, they enter for other reasons that are kept well hidden.
Kind Regards.
Kind Regards.
