volume parity
#1
hi guys!

i'm about to start a hopefully meaningful thread about Volume Trading and Volume Parity Analysis. I invite everyone to participate and provide significant feedback.

Volume trading is about making sound market decisions based on variables principally governed, and dictated, by volume movement. I follow the trading philosophy that defines that, after price action, volume variation is next most significant parameter to be observed when trading stock. Seems elementary? Or so it seems.

Volume parity analysis is the studious observance of volume movement in conjunction with price action. By looking for breaks in price-volume parity, one can take significant advantage, whether going bullish or bearish, in their trading regimen.

As a start, for discussion purposes, let's take a prime example:

As an active short-term trader, how would you respond to a particular stock with a harami doji that has a higher volume than its previous candle?
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#2
Hi Delo! This thread will help noobs like me, thanks for starting one.

As for your example, I would prolly take it as a signal that a change in direction is about to occur and will buy or sell as needed. Lets say if the doji formed after a huge sell down, Id take as a valid buy signal.

Note that Im still trying to learn TA so expect somewhat dumb answers/opinions from me and feel free to correct me.
nihil timendum est.
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#3
...maybe we should have a visual on this...


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#4
hi sir Delo,

I would have the same guess as what sir Blitz mentioned. A signal that has been confirmed that a reversal is indeed taking place (greater activity on the second candlestick as the confirmation). just a guess
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#5
+1 on the visual
nihil timendum est.
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#6
dont know what happened to my previous posts, when i edit, it suddenly disappears..

anyway, I'll post again here..U

I'll provide visuals in due time master ollie, mas magnada nga n nman if with graphics to better understand my kaepalan here..

see, the first thing an active short-term trader will do on our example is to provide TA cues. I believe there are 5 noteworthy items that need to be considered in our harami-doji with greater volume example:

1. price action - are the two candles involved in an uptrend, downtrend, or is the price for this stock consolidating?
2. is the long candle, white or black?
3. harami doji's position - where is it located relative to the long candle, is it near the bottom, near the top, o s medyo gitna lang?
4. harami doji's wick - how long is it's wick?
5. harami doji's volume - is it's volume is only slightly larger than the long candle's volume, or is it significantly larger?

It would greatly help in becoming a volume trader if you know TA and candles.

next stop, we shall do a volume review of the two candles involved. Volume review is the distribution of the transactions, volume-wise, for a particular price range. It will help us determine at what particular price does the most transactions occured for a particular day's price action. It helps a great deal in determining where the players are for that particular day..
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#7
it's been 3 1/2 years..i'm back! your hyper-volume parity trader..
delo

(08-26-2011, 03:05 PM)delo Wrote: dont know what happened to my previous posts, when i edit, it suddenly disappears..

anyway, I'll post again here..U

I'll provide visuals in due time master ollie, mas magnada nga n nman if with graphics to better understand my kaepalan here..

see, the first thing an active short-term trader will do on our example is to provide TA cues. I believe there are 5 noteworthy items that need to be considered in our harami-doji with greater volume example:

1. price action - are the two candles involved in an uptrend, downtrend, or is the price for this stock consolidating?
2. is the long candle, white or black?
3. harami doji's position - where is it located relative to the long candle, is it near the bottom, near the top, o s medyo gitna lang?
4. harami doji's wick - how long is it's wick?
5. harami doji's volume - is it's volume is only slightly larger than the long candle's volume, or is it significantly larger?

It would greatly help in becoming a volume trader if you know TA and candles.

next stop, we shall do a volume review of the two candles involved. Volume review is the distribution of the transactions, volume-wise, for a particular price range. It will help us determine at what particular price does the most transactions occured for a particular day's price action. It helps a great deal in determining where the players are for that particular day..

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#8
welcome back sir delo! would you mind updating us about your volume-parity trades result?
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#9
mind to continue sharing your wisdom sir delo?
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#10
Hi sir Delo. Welcome back!

Please continue your Volume parity analysis. I'm very willing to learn. Smile
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