By Buff Pelz Dormeier, CMT
Trading Strategies
Volume, which represents the number of market participants wagering at different points of price and time, is an important aspect of market behavior. According to technical theory, volume should lead price and confirm trends. Nonetheless, technicians still predominantly incorporate only price and time when calculating price averages. If volume theory is true, why not include volume?
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Filed in Volume News Portal
June 22, 2011 at 6:58 pm
Buff,
I’ve been reading your book and am now in Chapter 17. Figure 17.7, 17.8, 17.10, and 17.11 are nearly impossible to read. Would you please either send me a better copy of these charts or the name of stocks and time frames so I can look them up myself. Also, it might be helpful to others if you posted this on your website. Thank you, Jeff Reissman
July 5, 2011 at 2:47 am
Well I just ordered your book so hopefully I will have a better answer after I finish it, but like you wrote in that citi stock split commentary there are different views on what volume should be used. So not all traders are using the same volume, so volume indicators are skewed from using inaccurate volume data. So I guess traders see it more as a theory and don’t understand how to put it to use. One thing I would like to know maybe you can comment but I will see in after hours trading sometimes around 4:02 a big order may come in like 5,000,000 shares in one block trade. Where is that volume added, and shouldn’t that volume be weighted differently?
July 18, 2011 at 5:31 pm
I have recently read your book “Investing with Volume Analysis” which I found to be highly logical & most enlightening. I am however puzzled why you don’t refer to the previous work of Tom Williams who I thought was the inventor of volume spread analysis. Do you not consider his work has any merit.
August 8, 2011 at 11:15 pm
Buff,
Your observation that when price leads VCIP trouble is usually ahead on April 21 MTA presentation was prescient.
Vince
08/08/11