Hi Ed, Interesting point about the NYSE volume. Thanks!
I've been posting here and there about VSA (volume spread analysis), Wyckoff and other related items, but for some reason no one is jumping on these threads. It's my understanding that VSA is powerful stuff, although the "rules" for VSA are difficult to find online. I was hoping people here would share info about VSA and do something a bit collaborative, so I don't have to buy the book and reinvent the wheel. I posted several of the rules, as I pulled them (at least, my interpretation of the text) from a recent article in SFO magazine. Just an FYI to everyone reading this, that's all. Do a message board search on VSA or Wyckoff and you will see my previous posts. Please feel free to jump on these and continue them with additional info or even indicator code. Best regards, Brian --- In [email protected], "Ed Hoopes" <[EMAIL PROTECTED]> wrote: > > Re: Volume Indicators > It might also be useful to point out that 50% of the volume on the > NYSE is program trading. This volume is generated based on a price > difference between the cash SP500 and SP500 futures(and other pairs). > If a buy program is triggered, generally stocks in the SP500 index > are bought, but with no expectation that the market will actually go up. > > So be careful in interpreting what positive volume really means - > genuine optimism or just an expectation that the cash-futures spread > will eventually narrow, thus generating a profit for the trader. > > ReefBreak > > > > > --- In [email protected], "Gerard Carey" <gerardncarey@> wrote: > > > > Tks for your insights Yuki > > I did reply previously but that post appears to have gone into the > > ether. > > I enjoy short-term trading. I have an avg trade length of only 4 > > bars. So using volume is always going to be difficult. > > I did build a short-term entry volume confirmation indicator (see > > below) but it the entry signals still come from my momentum indicator > > come hell or high water. > > Regds > > Gerard > > > > // Trading Volume Positivity > > CondA= IIf(WMA(C,10)>Ref(WMA(C,10),-1),WMA(V,10),-WMA(V,10)) ; > > > > C1=CondA-Ref(CondA,-1); C2=CondA-Ref(CondA,-2); > > C3=CondA-Ref(CondA,-3); C4=CondA-Ref(CondA,-4); > > C5=CondA-Ref(CondA,-5); C6=CondA-Ref(CondA,-6); > > C7=CondA-Ref(CondA,-7); C8=CondA-Ref(CondA,-8); > > C9=CondA-Ref(CondA,-9); C10=CondA-Ref(CondA,-10); > > C11=CondA-Ref(CondA,-11); C12=CondA-Ref(CondA,-12); > > C13=CondA-Ref(CondA,-13); C14=CondA-Ref(CondA,-14); > > C15=CondA-Ref(CondA,-15); > > > > CA= (C1+C2+C3+C4+C5+C6+C7+C8+C9+C10)/10 ; > > > > Plot( CA,"T Volume Positivity",1,4); > > Plot( 0,"",4); > > GraphXSpace=5; > > > > > > --- In [email protected], Yuki Taga <yukitaga@> wrote: > > > > > > Hi Gerard, > > > > > > Tuesday, September 12, 2006, 7:33:13 AM, you wrote: > > > > > > GC> Yuki > > > > > > GC> As one who has always had considerable difficulty incorporating > > > GC> volume usefully into any of my trading strategies I would > > second > > > GC> Ken's motion. > > > GC> My strategy has long been to check vol level at entries. If > > volume is > > > GC> up, that's good! - that helps confirm the entry. > > > GC> If it's not up, or in fact down, who cares? > > > GC> Any light you can throw on the subject would be appreciated. > > > > > > As I say, it's probably a matter of time frames. One day's volume > > is > > > pretty meaningless, although one day's volume should, under certain > > > circumstances, cause a symbol to be glued to the radar screen. But > > no > > > major market advance of any consequence, none whatsoever in the > > > history of equities anywhere, ever, comes without an obvious and > > > marked increase in volume over the period that preceded it. These > > > advances are also the easiest times in which to make a quick > > killing. > > > > > > Can one make money ignoring volume? Sure. I have very short > > > patterns that ignore volume. But this is grinding it out, and quite > > > frankly, is not for the inexperienced or faint of heart. When > > volume > > > comes into the equation is when small fortunes are made -- and I > > > don't mean out of big fortunes, either. ^_^ > > > > > > It is because the easy money is made by observing volume, quickly > > > recognizing when it is screaming, and acting on that recognition, > > > that no one should ever be told to ignore volume. Volume is usually > > > *not* screaming of course. It takes patience and experience to > > > differentiate the real from the imagined. But it *always* screams > > > eventually, and this is *always* when the low hanging fruit is > > > begging to be picked. > > > > > > One can certainly trade without it. It's just not as easy, and one > > > won't trade as often. As I say, many lack the patience. > > > > > > Yuki > > > > > > Please note that this group is for discussion between users only. 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