Volume In Technical Analysis
Traditionally, not a lot of traders are paying attention to the volume based technical analysis. Historically, majority of indicators were developed to analyze price movements. There are several reasons why fifty years ago retail and professional traders’ main focus wad price analysis only.
First reason is the volume gaps. Half of century ago, the stocks were not trader as actively as they are traded today. Therefore, intraday volume data on many stocks had gaps – when volume equal zero. When you apply technical analysis to price you may see nice smooth picture, yet, when similar technical indicators are applied to volume that has gaps you will have disordered picture which make extremely difficult to pull out something logical from it.
Second reason is the low volume. When it comes to the low volume stock, as a rule it is a common to see big number of volume spikes. One trading period you may have volume equal 10K, another trading period it could be 50K which is 400% rise. The same as in case with volume gaps, such volatility in volume makes it difficult for analysis.
Fifty years ago the main technical analysis was done on the daily data and indexes and exchange were only the trading vehicle that had more or less stable volume flow that could be analyzed. However, at that time nobody provided volume for indexes and exchanges and this is the third reason why volume analysis was not very popular at that time.
I think, the first serious input into volume analysis was made by Marc Chaikin. At that time, he already understood the importance of volume analysis. Accumulation/Distribution, Chaikin Money Flow and other volume based technical indicators developed by Marc Chaikin were directed to measure the flow of the money – whether the investors coming into the market or they are leaving, to measure how actively stock or index was traded during an up-move or during a decline – whether enough money were injected into stock to make it overbought or whether enough were pulled out to make a stock oversold.
By its nature volume allows to track and measure the trading activity and reveal changes in this activity. Correct interpretation of volume analysis allows seeing the moments of sentiment changes – when investors stopped injecting money into stock and started to pull them out or when they do not sell any more in panic and started to buy.
Nowadays there are no problems with volume data. Trading activity of stocks is much higher than fifty years ago. Volume data for indexes (S&P 500, NYSE, DJI, Nasdaq 100, etc) became available. Due to the average high trading volume there is much less stock that have volume gaps and spikes. All of this has made volume analysis available to the wide range of investors.
Professional and institutional trades already started to use volume based technical analysis in junction with price based technical indicators a decade ago. More and more trading systems base their signals on volume indicators. NYSE volume was the first volume from the group of indexes and exchanges that professional analysts started to pay attention to. Now, volume of S&P 500, Nasdaq 100, Nasdaq Composite indexes has become equally popular.
Still, as was mentioned in the beginning, majority of retail traders, historically are stuck with price analysis and they base their trading decision solely on price technical analysis. The question is why? Trend is always described by price and volume and if you analyze price only you see half of the picture only.
Independent professional stock market technical analyst. Visit my personal technical analysis blog based on volume and advance decline technical indicators applied to the indexes and exchanges. The information in my blog could be used for educational purposes of QQQQ, SPY and DIA traders.
Article from articlesbase.com
Categories: Technical Analysis Tags: Analysis, technical, volume
Market Technical Analysis – Earnings Shoot Market Higher, Volume Stays Light
InTheMoneyStocks breaks out the key technical analysis techniques they have become famous for in this Intra Day Technical Analysis Video. Our Chief Market Strategist dissects the markets, avoids the hype, and supplies only information you can use. He discusses the market action regarding the INTC earnings, Intel Corporation (NASDAQ:INTC) , the big gains of Antigenics, Inc. (NASDAQ:AGEN) , Alcoa Inc. (NYSE:AA) , JPMorgan Chase & Co. (NYSE:JPM) as well as the ever important Dollar and its affect on the markets. They analyze the charts on the market to showcase their technical trend line analysis, price, pattern and time values. By utilizing these methods and not using the common technical tools which almost never work anymore, they are able to call every major and minor market move avoiding Wall Street hype. InTheMoneyStocks.com looks at major support and resistance levels on the charts telling their viewers where the market will rise and fall. They talk about major rules that must be learned. Enjoy, and come join our Research Center for precise calls, education and top notch guidance.
Video Rating: 3 / 5
Categories: Technical Analysis Tags: Analysis, earnings, higher, Light, Market, Shoot, Stays, technical, volume
Market Technical Analysis & Setups – China Drops Big Again…US Markets Fall On Light Volume
InTheMoneyStocks.com breaks out the key technical analysis techniques they have become famous for. They analyze the charts on the market to showcase their technical trend line analysis, price, pattern and time values. By utilizing these methods and not using the common technical tools which almost never work anymore, they are able to call every major and minor market move avoiding Wall Street hype. InTheMoneyStocks.com looks at major support and resistance levels on the charts telling their viewers where the market will rise and fall. They talk about major rules that must be learned. Enjoy and come get their premium daily, month, weekly and intra day expert guidance on the markets, gold, oil, us$ and stocks in their premium nightly videos, daily market reports, pro trader watch list, hidden gems and technical tactics. All included in the Research Center for just .99/month. Best value and guidance on Wall Street by those that avoid the Wall Street hype! RealTick graphics used with permission of Townsend Analytics, Ltd. ©1986-2009 Townsend Analytics, Ltd. All Rights Reserved. RealTick is a registered trademark of Townsend Analytics, Ltd.
Video Rating: 0 / 5
Categories: Technical Analysis Tags: Again...US, Analysis, China, Drops, Fall, Light, Market, Markets, Setups, technical, volume
Forex Volume By Country – Forex Currency Trading Explained
Forex currency trading is the trading of one currency against another. All Forex Trade results in buying of one currency and selling of another currency, simultaneously. When one country’s currency is being purchased with another country’s currency, it is the transaction in Forex trading and the negotiated price is the foreign exchange rate. It is the backbone of all the international capital transactions which take place throughout the world.
This is world’s largest trading market in terms of trading volume and is estimated to be $2.5 trillion.
Currency trading has exceeded the stock market too in terms of popularity and volume and has emerged as the most potential business in the world of trade. When the forex currency trading explained properly, you can observe how even minor price movements can result in huge profit as opposed to small profit margins in other financial instruments like commercial banking and the stock markets.
The trading throughout the world varies with regards to place and time and the market timings vary from place to place with respect to the working hours of the day. To get the Forex currency trading explained you must understand how it operates. Every Sunday at 7 pm in the evening New York time, forex trading begins when the markets open for the week in Tokyo in Japan situated in the easternmost part of the world.
Next in line to open their markets is the Hong Kong and Singapore followed by markets in European nations. Last in line to follow is London and by that time it is time for the Asian markets to close up for the day. Forex Volume By Country
Currencies are usually traded for hedging as well as speculative purposes. Market participants including individuals, corporate agencies, and institutions trade foreign currencies for various reasons. This is a good platform to evade the market exposure that the investors experience during their normal course of trading.
Currency market is perfectly suitable for speculative trading. It is estimated to be about 50 times the size of transaction markets of all the equity markets clubbed together and due to this the Forex trading is considered to be the most lucrative investment options in the world. Here even for the implementation of big buy/sell orders there is no slippage of the market price.
The traders can take the advantage of upward as well as the downward trend, thereby increasing the profit potential. The most commonly traded currency pair is the EURO/USD. Otherwise the most commonly traded currencies are USD (US Dollar), EUR (Euro), JPY (Japanese Yen), CHF (Swiss Franc), GBP (British Pound), CAD (Canadian dollar), and the AUD (Australian Dollar). Forex Volume By Country
Market Technical Analysis – Even With Horrible Earnings, Propping, Light Volume Take Over
InTheMoneyStocks.com breaks out the key technical analysis techniques they have become famous for. They analyze the charts on the market to showcase their technical trend line analysis, price, pattern and time values. By utilizing these methods and not using the common technical tools which almost never work anymore, they are able to call every major and minor market move avoiding Wall Street hype. InTheMoneyStocks.com looks at major support and resistance levels on the charts telling their viewers where the market will rise and fall. They talk about major rules that must be learned. Enjoy and come get their premium daily, month, weekly and intra day expert guidance on the markets, gold, oil, us$ and stocks in their premium nightly videos, daily market reports, pro trader watch list, hidden gems and technical tactics. All included in the Research Center for just $49.99/month. Best value and guidance on Wall Street by those that avoid the Wall Street hype! RealTick graphics used with permission of Townsend Analytics, Ltd. ©1986-2009 Townsend Analytics, Ltd. All Rights Reserved. RealTick is a registered trademark of Townsend Analytics, Ltd.
Categories: Technical Analysis Tags: Analysis, earnings, even, Horrible, Light, Market, Over, Propping, Take, technical, volume
Market Technical Analysis – Light Volume Means Markets Can Float Higher…Key Levels To Watch
InTheMoneyStocks.com breaks out the key technical analysis techniques they have become famous for. They analyze the charts on the market to showcase their technical trend line analysis, price, pattern and time values. By utilizing these methods and not using the common technical tools which almost never work anymore, they are able to call every major and minor market move avoiding Wall Street hype. InTheMoneyStocks.com looks at major support and resistance levels on the charts telling their viewers where the market will rise and fall. They talk about major rules that must be learned. Enjoy and come get their premium daily, month, weekly and intra day expert guidance on the markets, gold, oil, us$ and stocks in their premium nightly videos, daily market reports, pro trader watch list, hidden gems and technical tactics. All included in the Research Center for just $49.99/month. Best value and guidance on Wall Street by those that avoid the Wall Street hype! RealTick graphics used with permission of Townsend Analytics, Ltd. ©1986-2009 Townsend Analytics, Ltd. All Rights Reserved. RealTick is a registered trademark of Townsend Analytics, Ltd.
Categories: Technical Analysis Tags: Analysis, float, Higher...Key, levels, Light, Market, Markets, Means, technical, volume, watch
Market Technical Analysis – Light Volume Float, Key Top, New Position Entered…Here We Go!
InTheMoneyStocks.com breaks out the key technical analysis techniques they have become famous for. They analyze the charts on the market to showcase their technical trend line analysis, price, pattern and time values. By utilizing these methods and not using the common technical tools which almost never work anymore, they are able to call every major and minor market move avoiding Wall Street hype. InTheMoneyStocks.com looks at major support and resistance levels on the charts telling their viewers where the market will rise and fall. They talk about major rules that must be learned. Enjoy and come get their premium daily, month, weekly and intra day expert guidance on the markets, gold, oil, us$ and stocks in their premium nightly videos, daily market reports, pro trader watch list, hidden gems and technical tactics. All included in the Research Center for just $49.99/month. Best value and guidance on Wall Street by those that avoid the Wall Street hype! RealTick graphics used with permission of Townsend Analytics, Ltd. ©1986-2009 Townsend Analytics, Ltd. All Rights Reserved. RealTick is a registered trademark of Townsend Analytics, Ltd.
Categories: Technical Analysis Tags: Analysis, Entered...Here, float, Light, Market, Position, technical, volume
Market Technical Analysis – Markets Again Reverse On Selling Volume. Research Center Will Discuss!
InTheMoneyStocks.com breaks out the key technical analysis techniques they have become famous for. They analyze the charts on the market to showcase their technical trend line analysis, price, pattern and time values. By utilizing these methods and not using the common technical tools which almost never work anymore, they are able to call every major and minor market move avoiding Wall Street hype. InTheMoneyStocks.com looks at major support and resistance levels on the charts telling their viewers where the market will rise and fall. They talk about major rules that must be learned. Enjoy and come get their premium daily, month, weekly and intra day expert guidance on the markets, gold, oil, us$ and stocks in their premium nightly videos, daily market reports, pro trader watch list, hidden gems and technical tactics. All included in the Research Center for just $49.99/month. Best value and guidance on Wall Street by those that avoid the Wall Street hype! RealTick graphics used with permission of Townsend Analytics, Ltd. ©1986-2009 Townsend Analytics, Ltd. All Rights Reserved. RealTick is a registered trademark of Townsend Analytics, Ltd.
Categories: Technical Analysis Tags: Again, Analysis, Center, Discuss, Market, Markets, Research, Reverse, Selling, technical, volume
Volume indicator for forex markets?
Hello, i trade forex markets and i want to find an indicator similar to “volume” which i use when i trade commodities because this indicator is very critical in my trading disicions. Can someone help?
Incoming search terms for the article:
Categories: forex indicators Tags: forex, Indicator, Markets, volume
volume trading-automated forex signals-VolFx indicator-best forex signal
Automated forex signals directly to your MT4 account.Copy all trades from my account.Precise entry and exit levels.VolFx indicator for MT4 broker,showing you price bounce levels .See more at www.trading-volume.com
Categories: forex signals Tags: forex, indicatorbest, Signal, signalsVolFx, tradingautomated, volume
