Futures - Pure Price and volume based trading

[Bigbear]

JUBL food Improved in the beginning even though markets opened low.
But if i were to be an Market maker. I wouldn't have bought it to such high price so early because, I would bring it still lower and buy more stock at lower price.

 

[mubzaveri]

JUBL food Improved in the beginning even though markets opened low.
But if i were to be an Market maker. I wouldn't have bought it to such high price so early because, I would bring it still lower and buy more stock at lower price.

Good approach Big Bear Bhai......
from ur posts i think u can open new avenue to look at the markets like Biggies.....:thumb:
KEEP IT UP..........

 

[Bigbear]

Dear Mubzaveri,

Not so soon my friend. There is a lot for us to learn. If we interact with ideas and open mindedness. we can reach heights one can never reach alone!
Infact that's how world is what it is now! By sharing!

BTW about VSA, let me give you a nice article which was shared...


http://www.thestreet.com/story/10556761/1/volume-the-great-deceiver.html

Let me know what you think

 

[mubzaveri]

Dear Mubzaveri,

Not so soon my friend. There is a lot for us to learn. If we interact with ideas and open mindedness. we can reach heights one can never reach alone!
Infact that's how world is what it is now! By sharing!

BTW about VSA, let me give you a nice article which was shared...


http://www.thestreet.com/story/10556761/1/volume-the-great-deceiver.html

Let me know what you think

big bear,
i read that article & what i understood is it talks about the manipulation of market volume by scalping robots.............:thumb:

 

[Bigbear]

Yeah, Volume will not make perfect sense due to arbitrager software and others.

But The main points to take from there is.

We need to make our Volume analysis not all the time but at important key points

Like near resistance/support areas . Previous day's high low area.

Well be in touch , would be nice if you can post your trades too.

Take care

 

[trader.trends]

Bigbear
Volume has always interested me but I have not been able to make head or tail of it. Used to follow Bunny keenly in his thread here
http://www.traderji.com/equities/37083-trading-volume-spread-analysis-vsa.html#post400927

He finally gave it up.

For instance, my understanding is that market moves up if people are willing to buy more and more at higher prices and falls if people are selling more and more at lower prices. But in your charts above you have marked the reverse.
As volume increases with falling prices you have marked it as Heavy buying. As you can see after every buying that you have marked, the prices have gone done further. As a layman, I would interpret it as heavy selling. (Heavy buying by someone = Heavy Selling by someone else)

Another point is that when large volumes come up, you mark it as Smart money. Since Retail Traders form a very miniscule part of the market when Smart Money sells large volume, it cannot be absorbed by Retail Traders but by some other Smart Money only, or am I wrong in this interpretation?

Another assumption is that Smart Money is always correct and they make a pile all the time. This assumption does not have any basis other than in our thought, doesn't it? There are so many big players who lose money consistently, MFs don't post profit every year. So many big names fold up every year (MF Global being the recent example). So how do you interpret volume in this light.

I tried following volume and gave up as it made no trading sense to me. I did not and still do not know how to interpret that other than in the layman terms mentioned above.

I look forward to clarification and better understanding from your insight.

 

[Bigbear]

Our markets are getting ready for a big upmove today after 1.30pm or tomo..
I have college internals today .. Wont be able to trade.

Atleast lets see if my analysis is working out .. !

 

[Bigbear]

Bigbear
Volume has always interested me but I have not been able to make head or tail of it. Used to follow Bunny keenly in his thread here
http://www.traderji.com/equities/37083-trading-volume-spread-analysis-vsa.html#post400927

He finally gave it up.

For instance, my understanding is that market moves up if people are willing to buy more and more at higher prices and falls if people are selling more and more at lower prices. But in your charts above you have marked the reverse.
As volume increases with falling prices you have marked it as Heavy buying. As you can see after every buying that you have marked, the prices have gone done further. As a layman, I would interpret it as heavy selling. (Heavy buying by someone = Heavy Selling by someone else)

Another point is that when large volumes come up, you mark it as Smart money. Since Retail Traders form a very miniscule part of the market when Smart Money sells large volume, it cannot be absorbed by Retail Traders but by some other Smart Money only, or am I wrong in this interpretation?

Another assumption is that Smart Money is always correct and they make a pile all the time. This assumption does not have any basis other than in our thought, doesn't it? There are so many big players who lose money consistently, MFs don't post profit every year. So many big names fold up every year (MF Global being the recent example). So how do you interpret volume in this light.

I tried following volume and gave up as it made no trading sense to me. I did not and still do not know how to interpret that other than in the layman terms mentioned above.

I look forward to clarification and better understanding from your insight.

Dear, today evening will clarify all the points to the best of my knowledge.
And my confidence is growing day by day. Hope to have a nice chat!

 

[Bigbear]

Our markets are getting ready for a big upmove today after 1.30pm or tomo..
I have college internals today .. Wont be able to trade.

Atleast lets see if my analysis is working out .. !

Hope you all saw the move.. I myself wasn't there to see it!

 

[Bigbear]

Bigbear
Volume has always interested me but I have not been able to make head or tail of it. Used to follow Bunny keenly in his thread here

http://www.traderji.com/equities/37083-trading-volume-spread-analysis-vsa.html#post400927

Will follow the bunny's thread for sometime! Let's see how things were!


He finally gave it up.

For instance, my understanding is that market moves up if people are willing to buy more and more at higher prices and falls if people are selling more and more at lower prices. But in your charts above you have marked the reverse.

If people are willing to buy more and more at higher prices who is selling to them?

If people are willing to selling more and more at higher prices who is buying from them?


As volume increases with falling prices you have marked it as Heavy buying. As you can see after every buying that you have marked, the prices have gone done further. As a layman, I would interpret it as heavy selling. (Heavy buying by someone = Heavy Selling by someone else)

The above two questions will answer this too!


Another point is that when large volumes come up, you mark it as Smart money. Since Retail Traders form a very miniscule part of the market when Smart Money sells large volume, it cannot be absorbed by Retail Traders but by some other Smart Money only, or am I wrong in this interpretation?

This will be answered by the same question

Another assumption is that Smart Money is always correct and they make a pile all the time. This assumption does not have any basis other than in our thought, doesn't it? There are so many big players who lose money consistently, MFs don't post profit every year. So many big names fold up every year (MF Global being the recent example). So how do you interpret volume in this light.


Smart money is not always correct[ Assumption :They are correct 90%]. And not all smart money is right [ This is taken into consideration]. But when they are correct,they make killing money!

If you can tell how MF allocates money, then answering your question becomes very simple. But i have a logic why they don't make money. I don't know if it is true or not. so no point in writing my assumption




I tried following volume and gave up as it made no trading sense to me. I did not and still do not know how to interpret that other than in the layman terms mentioned above.

The trades i have shown above are only volume based.

I look forward to clarification and better understanding from your insight.

This is general logic to make money.

Any person who has to make money in market.
you, me and everyone else.

There is only 1 logic. Buy low and sell high [ Sell high and buy low].


So to answer all your questions at one go!!

Here comes the Big question.

If you have 1000 crores in your account today . And you want to make profit out of it. How would you trade?

Don't think about profit/loss/money management. Think about the logic.


Where will you buy? Where will you sell? Who will buy such large quantities from you? Who will buy such large quantities when you want to sell?

Then think about VSA!