34 replies to this topic

[SemiBizz]

Well, it's a shame that some of us seem to be able to use it so effectively and you feel threatened by their success... I say, to each his own Whatever works for you. Have a nice Sunday.

[marco]

UFO, I think you'd make more of a point if you actually posted in one of Semi's threads showing how his specific analysis was wrong. But then again, most of Semi's threads have been right! So maybe bad idea. But do you really even understand volume analysis? It's more than just high volume = good, low volume = bad, but you seem to be painting volume in one large brush stroke without specifying which component of volume analysis you disagree with. I don't pretend to understand volume with any great understanding, but what is obvious to me is that it's one of the few indicators that works in real-time. You don't have to wait for moving averages to cross or the MACD to turn up, where it could be too late since those are lagging indicators. With volume, you can know within a matter of minutes what might happen. How can you not want to add that kind of tool to your toolbox? Maybe you're just looking at gross trends and seeing that the market can move higher on low volume. And I won't disagree with that. The same can happen with individual stocks. And while I don't follow the nuts and bolts of the indexes, I can say that with stocks, even though daily volume may be low, the intraday patterns of many rising stocks show volume spikes at the critical points. It's those intraday bursts of volume that keep the stock moving up, even though overall, daily volume is actually very low. So I just don't see how you can make a blank statement about volume analysis without saying which part doesn't work.

[U.F.O.]

Yes HoseB.....It's like a religion. U.F.O.

[securelstmile]

"I think it is all tape reading and there are many componenents and methods that all lead down the same road."

secure, if I write a book can I include your quote? Good one.

HoseB, why does discussing volume make one a heretic? I do not get this.

U.F.O.

Wyckoff was writing about accumulation mark up and distribution when most of today's gurus were barely a twinkle in their grandma's eye. I don't use Semis methods nor do I discount them but to discount one of the pioneers of stock trading whose ideas are dogma to most good traders (whether they know they got it from him or not) is just choosing ignorance.

He was the O'Neill of his day and O'Neill has credited his writings with helping hiim form his methods along with Livermore and Darvos. No matter what endeavor I have chosen to pursue I have always tried to at least be educated. Education is my only religion.

[OEXCHAOS]

When one sees patterns work over and over again, and one profits from some of them and avoids losses from others, it's not religion it's science. I'm NOT an expert on volume, but it didn't take me long to see where it fit. Is the relative importance of support or resistance important to a trader? I don't know about you, but I think it's important. Every day, and I mean EVERY day, I look at volume patterns for ChartSmarts, though to be sure they aren't quite as useful on individual stocks as they are on the ES, but it's a nice tool for winnowing down the possible picks. It's simply incorrect to dismiss volume analysis as useless. It has some utility on all time frames. Whether that fits with what your doing is another matter, but I see it as very useful and self correcting. Frankly, what I'm hearing from you guys on volume sounds a lot like the poo-pooing of sentiment that I've heard. and is just as wrong...Just because you've not studied or don't understand it doesn't mean that it doesn't have utility. That it has utility doesn't mean that it's worth it to you to try using, either, but that's another matter. Mark