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Read A Complete Guide To Volume Price Analysis PDF Ebook by Anna Coulling. Anna Coulling, ePUB B00DGA8LZC, kaz-news.info .PDF). A Complete Guide To Volume Price Analysis [Anna Coulling] on kaz-news.info * FREE* shipping on qualifying offers. It was good enough for them What do. Editorial Reviews. About the Author. Hi - my journey into the financial markets was prompted by a desire to make sense of the jargon filled replies I usually.
It really is common sense once youstart to think about the markets in this way. On the London Stock Exchange there are official market makers for many securities but not for sharesin the largest and most heavily traded companies, which instead use an electronic automated systemcalled SETS.
However, you might ask why I have spent so much time explaining what these companies do, whenactually you never see them at all. The answer is very simple. As the 'licensed insiders', they sit in themiddle of the market, looking at both sides of the market. They will know precisely the balance ofsupply and demand at any one time. Naturally this information will never be available to you, and ifyou were in their position, you would probably take advantage in the same way.
The only tool we have at our disposal to fight back, is volume. We can argue about the rights andwrongs of the situation, but when you are trading and investing in stocks, market makers are a fact oflife.
Just accept it, and move on. Volume is far from perfect. The market makers have even learnt over the decades how to avoidreporting large movements in stock, which are often reported in after hours trading. However, it is thebest tool we have with which to see ' inside the market'Volume applies to all markets and is equally valuable, whether there is market manipulation or not.
Volume in the futures market, which is the purest form of downloading and selling reveals when the marketis running out of steam. It reveals whether downloading interest is rising or falling on a daily basis.
Itreveals all the subtleties of pull backs and reversals on tick charts and time charts from minutes tohours. Volume is the fuel that drives the market. Volume reveals when the major operators are movingin and out of the market. Without volume, nothing moves, and if it does move and the volume is not inagreement, then there is something wrong, and an alarm bell rings! For example, if the market is bullish and the futures price is rising on strong and rising volume, thenthis is instantly telling us that the price action is being validated by the associated volume.
The majoroperators are downloading into the move. Equally, if the market is falling and the volume is rising, then onceagain volume is validating price.
It really is that simple. These principles apply whatever the market,whether it is bonds, interest rates, indices, commodities or currencies. What you will discover in thisbook is that the analysis of price and volume applies to every market, manipulated or otherwise. Inthe manipulated cash markets of stocks, it provides you with the ultimate weapon to avoid beingsuckered in by the market makers. In the futures markets, it gives you the ultimate weapon to validate price, and to reveal the true marketsentiment of downloaders and sellers and to take action as the reversals in trend are signalled using volume.
Here, we are following the major operators who will have the inside view of the market. In the spot forex market we have a different problem. There is no true volume reported. Even if therewere, would this be shown as trade size, or 'amounts of currency' being exchanged.
However, tick volume is not perfect, nothing is in trading. First, the tick volumes on one platform willvary from the tick volumes on another, since tick data will be provided through the platform of anonline broker. Second, the quality of the data will depend on several factors, not least whether thebroker is subscribed directly to the interbank liquidity pool directly using one of the expensivewholesale feeds.
Nevertheless, a quality FX broker will normally provide a quality feed. But, is tick data valid as a proxy for volume? After all, volume is reallyactivity, and in this sense can be reflected in price, since tick data is simply changes in price. So, ifthe price is changing fast, then does this mean that we have significant activity in the market?
In myopinion the answer is yes. To prove this point, we only need to watch a tick chart prior to, and justafter a significant news release. Take the monthly Non Farm Payroll, which every forex trader knows and loves! Assume we arewatching a tick chart. Prior to the release each tick bar may be taking a few minutes to form. During the release and immediately after, each bar is forming in seconds, appearing as if being firedonto the screen using a machine gun! A chart that has taken an hour to fill with bars, is now a fullframe within minutes.
This is activity, pure and simple, which in turn we can assume is representative of volume. There willalways be market manipulation in the spot forex market.
In many ways it is the most widelymanipulated of all. We only have to consider the currency wars as evidence of this, but as traders,tick volume is what we have, and tick volume is what we use. Whilst it isn't perfect, I can guaranteeyou one thing.
You will be considerably more successful using it, than not, and you will see why, oncewe start to look at the charts themselves across all the various markets.
If you are still not convinced? Let me give you an analogy, not perfect I accept, but which I hope willhelp. It isa cold, wet and miserable day in the middle of winter, and the auction room is in a small provincialtown. The auction room is almost empty, with few downloaders in the room.
The auctioneer details the nextitem, an antique piece of furniture and starts the bidding with his opening price. After a short pause, abid is made from the room, but despite further efforts to raise the bidding, the auctioneer finallybrings the hammer down, selling the item at the opening bid. Now imagine the same item being sold in a different scenario. This time, the same item is being sold,but the auction house is in a large capital city, it is the middle of summer and the auction room is full.
The auctioneer details the next piece which is our antique furniture, and opens the bidding with a. The price moves quickly higher, with bidders signalling interest in the auction room, and phonebidders also joining in.
Top 10 Volume Trading Books
Eventually the bidding slows and the item is sold. In the first example, the price changed only once, representing a lack of interest, and in our terms alack of bidders in the room, in other words volume.
In the second example the price changed severaltimes and quickly with the price action reflecting interest, activity and bidders in the room. In otherwords volume. In other words, the linkage between activity and price is perfectly valid. Activityand volume go hand in hand, and I hope that the above analogy, simple and imperfect as it is, willconvince you too.
The above simple analogy also highlights three other important points about volume. The first is this.
All volume is relative. Suppose for example this had been our first visit to thisparticular auction room. Is the activity witnessed average, above average or below average.
Wewould not be able to say, since we have no yardstick by which to judge. If we were a regular visitor,then we could judge instantly whether there were more or less attendees than usual, and make ajudgement on likely bidding, as a result. This is what makes volume such a powerful indicator. As humans we have the ability to judgerelative sizes and heights extremely quickly, and it is the relative aspect of volume which gives itsuch power.
Unlike the tape readers we have a chart, which gives us an instant picture of the relativevolume bars, whether on an ultra fast tick chart, an intra day time chart, or longer term investing chart. It is the relationship in relative terms which is important. The second point is that volume without price is meaningless.
Imagine an auction room with nobidding. Remove the price from the chart, and we simply have volume bars. Volume on its ownsimply reveals interest, but that interest is just that, without the associated price action. It is onlywhen volume and price combine that we have the chemical reaction which creates the explosivepower of Volume Price Analysis. Third and last, time is a key component. Suppose in our auction room, instead of the bidding lasting afew minutes, it had lasted a few hours if allowed!
What would this tell us then? That the interest inthe item was subdued to say the least. Hardly the frenetic interest of a bidding war. To use a water analogy. Imagine that we have a hosepipe with a sprinkler attached. The water is theprice action and the sprinkler is our 'volume' control. If the sprinkler is left open, the water willcontinue to leave the pipe with no great force, simply falling from the end of the pipe.
However, assoon as we start to close our sprinkler valve, pressure increases and the water travels further. Wehave the same amount of water leaving the pipe, but through a reduced aperture. Time has nowbecome a factor, as the same amount of water is attempting to leave the pipe in the same amount oftime, but pressure has increased. It is the same with the market. However, let me be provocative for a moment, and borrow a quote from Richard Wyckoff himself.
As you are probably aware, or will not doubt find out when you begin trading, there are several free'volume' indicators, and many proprietary systems you can download. Whether free or paid, all have onething in common.
They have neither the capacity nor intellect to analyse the price volume relationshipcorrectly in my view, for the simple reason, that trading is an art, not a science. When I finished my two weeks with Albert, I then spent the next 6 months just studying charts, andlearning to interpret the price and volume relationship. I would sit with my live feed and my twomonitors, one for the cash market and the other for the equivalent futures market, watching every pricebar and the associated volume and using my knowledge to interpret future market behaviour.
This maynot be what you want to read. And some of you may be horrified at how labour intensive this allsounds. However, just like Wyckoff, I also believe there are no short cuts to success.
Technical analysis, inall its aspects is an art, and interpreting the volume price relationship is no different. It takes time tolearn, and time to be quick in your analysis. However, just like the tape readers of the past, oncemastered is a powerful skill. The technique is a subjective one, requiring discretionary decision making.
It is not, and never willbe, one that lends itself to automation. If it were, then this book would simply be more fuel for thefire. Finally, and I hope you are still reading and have not been put off by the above statements , onefurther aspect of volume is whose perspective are we using when we talk about downloading and selling.
Are we talking from a wholesalers perspective or from the retail perspective. So, let me explain. As investors or speculators the whole raison d'etre for studying volume is to see what the insiders,the specialists are doing.
For the simple reason that whatever they are doing, we want to follow anddo as well! The assumption being, implied or otherwise, is that they are likely to have a much betteridea of where the market is heading. This is not an unreasonable assumption to make.
So, when the market has moved sharply lower in a price waterfall and a bearish trend, supported bymasses of volume, this is a downloading climax. It is the wholesalers who are downloading and the retail traderswho are panic selling.
A downloading climax for us represents an opportunity. Likewise, at the top of a bull trend, where we see sustained high volumes, then this is a sellingclimax. The wholesalers are selling to the retail traders and investors who are downloading on theexpectation of the market going to the moon! So remember, when I write about volume throughout the remainder of this book, downloading and selling is.
Now in the next chapter we're going to move on to consider the other side of the equation, which isprice. UnknownNow we turn to the counter balance of volume which is price, and forgive me for a moment if wereturn to Jesse Livermore and one of his many quotes which I mentioned at the start of this book: As Isaid in chapter one, Volume Price Analysis has been around for over years. The same is truewhen we consider the analysis of price, and the only representation of price which truly changed howtraders studied and analysed charts was in the introduction of candlestick charts in the early 's.
Fads come and go in trading. Something that was in 'vogue' a few years ago, is no longer consideredvalid, and some 'new' approach is then promoted. One approach which is being marketed heavily atthe moment is 'price action trading' or PAT. This is as it sounds. Trading using an analysis of price,with no or very few indicators, which I find strange. And my reasons are as follows. Imagine suggesting to Jesse Livermore, Charles Dow, Richard Wyckoff, and Richard Ney, that we haddevised a new and exciting way to analyse the markets.
I'm sure Jesse and the others would have been struck dumb at such asuggestion. But don't worry. In this book I explain price action trading, which is then validated withvolume. So you get two approaches for the price of one here!
Now that's what I call value for money!!
[REQ] A Complete Guide to Volume Price Analysis
However, I digress. As afrequent visitor to this part of London, I would often drive past this exchange, and at any time duringthe day, would see the traders in their different brightly coloured jackets, dashing out to grab coffeesand sandwiches before rushing back to the floor of the exchange.
Without exception these weregenerally young men, loud and brash, and in fact on the corner of Walbrook and Cannon Street therenow stands a bronze statue of a floor trader, mobile phone in hand.
These were the days of fast cars,and aggressive trading, and it was ironic that this was the world where I started my own tradingcareer, with FTSE futures orders filled on the floor of the exchange. This was the world of adrenaline pumped traders, yelling and screaming using unintelligible handsignals, downloading and selling in a frenetic atmosphere of noise and sweat. It was positively primordialwhere the overriding emotion emanating from the floor was fear, and obvious to anyone who cared toview it from the public gallery.
However, the advent of electronic trading changed all of this, and the LIFFE exchange was one ofmany casualties. All the traders left trading and moved away from the pit, and onto electronic. The irony is, that most of the traders, and I have spoken to many over the years, failed tomake the transition from pit trading, to electronic trading, for one very simple reason.
A pit trader, could sense not only the fear and greed, but also judge the flow of the market from thedownloading and selling in the pit. In other words, to a pit trader, this was volume or order flow.
This iswhat a pit trader saw and sensed every day of the week, the flow of money, the weight of marketsentiment, and the trading opportunities that followed as a result. In other words, they could 'see' thevolume, they could see when the big downloaders were coming into the market and ride on their coat tails.
This is the equivalent of volume on the screen. However, without being able to see, judge, and feel the flow in the pit, most of these traders failed tomake a successful transition to screen trading.
Some succeeded, but most were never able to makethat move, from an environment where price action was supported by something tangible. Whetherthey would call it activity, order flow, sentiment, or just the 'smell of the market' this is what broughtthe price action to life for them, and why they struggled to succeed with the advent of the electronicera. Pit trading still continues today, and if you do get the chance to view it in action, I would urge you togo.
A Complete Guide to Volume Price Analysis
Once you have seen it for real, you will understand why volume is so powerful in supportingprice, and why I believe the exponents of PAT are simply promulgating something different for thesake of it.
Whilst it is undoubtedly true to say that price action encapsulates all the news, views and decisionsfrom traders and investors around the world, and that with detailed analysis we can arrive at aconclusion of future market direction, without volume we have no way of validating that priceanalysis.
Volume gives us our bearings, it allows us to triangulate the price action and to check thevalidity of our analysis. This is what the pit traders of old were doing — they would see a price move,validate it by considering the order flow in the pit, and act accordingly. For us, it is the same.
Wesimply use an electronic version of order flow which is the volume on our screens. But, let me give you another example. Returning to our auction again, only this time there is no physical sale room. Instead we are joining anonline auction, and perhaps now you can begin to imagine the problems that the ex pit tradersencountered.
We have moved from the physical sale room, where we can see all the downloaders, thenumber of people in the room, the phone bids and the speed of the bidding. In a physical sale roomwe also get a sense of where the price starts to pause.
We see bidders become fearful as the priceapproaches their limit and they hesitate with the next bid, just fractionally, but enough to tell you theyare near their limit. This is what the pit traders missed. In an online auction we are logged in and waiting for the auction to start. An item we want to downloadappears and we start bidding. We have no idea how many other bidders are there, we have no idea ifwe are playing on a level playing field.
All we see is the price being quoted. The auctioneer, for allwe know, could be taking bids 'off the wall' fake bids in other words which happens more often thanmany people think. Meanwhile back to our online auction.
We continue bidding and eventually win the item. But, have we got our item at a good price? And, in this scenario we are only referring to price and notvalue, which is a very different concept.
Besides, I hope by now, you are beginning to get the picture. In the online auction all we see is price. Furthermore, the great iconic traders of the past would have given us their answer, and itwould have been a very emphatic NO.
Once again I accept it is an imperfect example, but one which I hope makes the point. To me, a price chart with no volume is only part of the story. Price does encapsulate market sentimentat a given and precise moment in time, but with so much market manipulation prevalent in so manymarkets, why ignore such a valuable tool which is generally provided free.
Whilst price is a leading indicator, in itself, it only reveals what has gone before, from which we theninterpret what is likely to happen next. Whilst we may be correct in our analysis, it is volume whichcan complete the picture. In a manipulated market, volume reveals the truth behind the price action. In a pure market, volumereveals the truth behind market sentiment and order flow. So, let's take a closer look at price, and in particular the effect that changes in technology have had onthe four principle elements of a price bar, the open, the high, the low and the close.
And the mostsignificant change in the last few years has been the move to electronic trading, which has had themost profound effect on two elements of the four, namely the opening and closing prices. Scroll back to the days of Ney and earlier, and the markets in those days only traded during a physicalsession.
The market would open when the exchange opened, and close when the exchange closed at aprescribed time. Trading was executed on the floor of the exchange, and everyone knew when themarket was about to open or close. This gave the opening and closing prices great significance,particularly on the open and close of the day. The opening price would be eagerly awaited by tradersand investors and, as the closing bell approached, frenetic trading activity would be taking place astraders closed out their end of day positions.
This is now generally referred to as regular tradinghours RTH , and is the time the exchange is physically open. Whilst this principle still applies tostock markets around the world, with the NYSE trading from 9. The platform that really changed the game was Globex, introduced by the CME in , since whenvirtually every futures contract can now be traded 24 hours a day.
Whilst the cash markets, such asstocks, are restricted to the physical time set by the exchange, what has changed, certainly with regardto this market, has been the introduction of electronic index futures, which now trade around theclock.
What this means, in effect, is that the opening and closing prices of the cash market are now farless important than they once were. The reason is simply the introduction of Globex, as electronic trading has become the standard forindex futures, which are derivatives of the cash market indices.
With these index futures now trading overnight throughthe Far East and Asian session, the open of the cash index is no longer a surprise with the futuressignalling overnight market sentiment well in advance.
By contrast, in the days before the advent ofelectronic trading, a gapped open, up or down, would have given traders a very strong signal ofmarket intent. Whereas today, the open for the major indices is no longer a great surprise as it isforecast by the overnight futures markets. Whilst it is certainly true to say that individual stocks may well react for a variety of reasons tosentiment in the broad index, generally all boats tend to rise on a rising tide, and therefore likely tofollow suit.
The open and the close for individual stocks is still significant, but the point is that theindex which reflects market sentiment will be broadly known in advance, making the open lessrelevant than it once was. The same could be said of the closing price. When the physical exchange closes, stocks are closed forthe day in the cash markets, but electronic trading continues on the index future and moves on into theFar East session and beyond.
This facet of electronic trading also applies to all commodities, which are now traded virtually 24hours a day on the Globex platform, and both currency futures, and currency spot markets also trade24 hours a day. The electronic nature of trading is reflected in the price chart. Twenty years ago, gap up or gap downprice action would have been the norm, with the open of a subsequent bar closing well above orbelow the close of the previous bar.
These were often excellent signals of a break out in theinstrument, particularly where this was confirmed with volume. Such price action is now rare, andgenerally restricted to the equity markets, which then catch up when the physical exchange opens thenext day.
Virtually every other market is now electronic such as the spot forex market, and as we havejust seen, indices catch up with the overnight futures as do commodities and other futures contracts. The open of one bar will generally be at exactly the same price as the close of the previous bar,which reveals little.
This is one of the many effects that electronic trading is now having on priceaction on the charts, and is likely to continue to have in the future. Electronic trading is here to stay,and the significance of these elements of price action in various markets will change as a result.
If the market is running 24 hours a day, then the open of one bar will simply follow the close of theprevious bar, until the market closes for the weekend. From a price action trading perspective, thisgives us little in the way of any valid 'sentiment' signals, which makes volume even more relevant intoday's electronic world — in my humble opinion at any rate! However, let's take a look at an individual bar in more detail, and the four elements which create it,namely the open, the high, the low and the close, and the importance of these from a Volume PriceAnalysis perspective.
At this point I would like to say that the only price bars I use in the remainderof this book, and in my own trading are candlesticks. This is what Albert taught all those years ago,and it is how I learnt.
I have tried bar charts and thought I could dispense with candles. However, I have returned to candlesand do not plan to use any other system, for the foreseeable future. I do understand that some tradersprefer to use bars, line charts, Heikin Ashi, and many other. However, my apprenticeship in Volume. Price Analysis was with candlesticks and I believe its true power is revealed when using thisapproach.
I hope, by the end of this book you too will agree. Therefore, I want to start by dissecting a typical candle and explain how much we can learn from it. In any candle, there are seven key elements. The open, high, low and close, the upper and lowerwicks and the spread as shown in Fig 3.
Whilst each of these plays a part in defining the priceaction within the time frame under consideration, it is the wicks and the spread which are the mostrevealing in terms of market sentiment, when validated with volume. Fig 3. The image in Fig 3. However, the price action could have taken a different journey in creating thiscandle. It is the completed candle which is important. A wide spread between the open and the close indicates strong market sentiment, either bullish orbearish, depending on whether the closing price finished above the opening price or below it.
A narrow spread between the open and the close indicates sentiment which is weak. There is nostrong view one way or the other. The wicks to the top and bottom are indicative of change. A changein sentiment during the session.
After all, if the sentiment had remained firm throughout, then wewould have no wicks at all. This is the equivalent of our online auction, or physical auction, wherethe price opens at one level, and closes at a higher level once sold. The price action would simplycreate a solid candle with no wick to the top or the bottom, and in the context of trading, suggestingstrong and continued sentiment in the direction of the candle.
This is the power of the wicks and why, when used in combination with the spread, reveal so muchabout true market sentiment. It forms the basis of price action trading, which is perfectly valid in it'sown right. However, why stop at this point and refuse to validate that price action with volume?
This is. Just drop me an email as I am always happy to learn. So, as you can see, the length and context of the wick, whether to the upside or the downside isparamount in Volume Price Analysis, and the easiest way to explain this is to consider some furthervisualisation examples, which will help to make the point.
Here we have a wick where the price hasopened, the market has moved lower, and then recovered to close back at the open price. In thesecond example in Fig Let's analyse what's happening here with the price action and market sentiment. In both cases we canbe certain that this is the profile of the price action, since the closing price has returned to the originalopening price. So there is no guesswork.
It is true that within the price action, there may have beenups and downs, pull backs and reversals, but at some point in the session, the price action hit a low,or a high and then returned to the original starting point. Lower Wick ExampleFig 3. Taking the lower wick example first, the price bar opened and almost immediately sellers were in themarket forcing the price lower, and overwhelming the downloaders. Perhaps within the move lower, therewere pauses and brief attempts to rally, which would have been seen perhaps in faster time frames,and a key part of trading.
At some point during the course of the session, the downloaders started to come back into the market,wrestling control from the sellers as the market price had now become an attractive downloadingproposition. Gradually near the bottom of the price bar, the sellers finally give up, having beenoverwhelmed by the downloaders who gradually take control.
Now it's the turn of the sellers to be underpressure, as more and more downloaders flood into the market, overwhelming the sellers and taking theprice back higher once again, to finally close at the opening price.
But, what does this price action reveal? And the answer is two very important things. First, that in this session, whatever the time frame may have been, there has been a complete reversalin market sentiment. Second, that the sentiment on the close of the bar is bullish — it has to be, since we know that the priceaction closed at the open, so at the instant of closure, the price must have been rising, supported by allthe downloading pressure underneath.
Does this mean that this is signalling a reversal in any trend? The short answer is no, and you willdiscover why once we start looking at volume, which will then give us the complete picture.
In this case the spread was zero, which is JUST as significant as any largespread of the candle. I hope that the above example has helped to explain what is happening 'inside' the candle with theassociated price action.
Nevertheless, the principle holds good. This now brings me on to another area of volume analysis which we are also going to consider laterin the book. I've already mentioned Volume Price Analysis or VPA several times so far, which is therelationship between volume and price over the entire life of the candle, but what happens within thelife of the candle for example.
Whilst VPA focuses on the 'linear relationship' between volume and price once the candle has closed,VAP focuses on the volume profile during the creation of the price bar.
In other words, 'where' has thevolume been concentrated within the associated price action. We could say that VPA is our big picture of the volume price relationship on the outside of the candle,whilst VAP gives us the detail of the volume profile, 'inside' the candle. This helps to give us an. A further triangulation of the volume and pricerelationship. Now let's look at our other example, which was the upper wick example. Upper Wick ExampleFig 3. However, as the session develops the price action reaches a point at which the downloaders are beginningto struggle, the market is becoming resistant to higher prices and gradually the sellers begin to regaincontrol.
Finally, at the high of the session, the downloaders run out of steam and as the sellers come into the market,the downloaders close out their profits. This selling pressure then forces prices lower, as waves of sellershit the price action. The candle closes back at the open price and the session closes. Once again, there are two key points.
First, we have a complete reversal in market sentiment, this time from bullish to bearish. Second, thesentiment at the close is bearish, as the open and closing price are the same. Again, this is a stylised view of the price behaviour.
Nevertheless, this is what has happened over thesession of the candle, and it makes no difference as to what time frame we are considering. This could be a candle on a tick chart, a 5 minute chart, a daily chart or a weekly chart, and this iswhere the concept of time comes into play.
This type of price action, accompanied with the correctvolume profiles, is going to have a significantly greater effect when seen on a daily or weekly chart,then when seen on a 1 minute or 5 minute chart. This is something we will cover in more detail in the next few chapters. But, what does this price action look like on a price chart in candle form? Price action and volume then tell us where the market is likely to go next. And here is another, equally powerful candle.
Upper Wick ExampleOnce again, this is an extremely important price pattern, which we will return to time and time againthroughout the book. After all, we can now visualise thedownloading and the selling simply from the price action of the wick on the candle. But what of course thisdoes NOT reveal, is the strength of this price action, and perhaps even more importantly, whether thisprice action is valid.
Is the price action genuine, or is it false, and if it is genuine, what is the strength. This is why I feel price action trading only tells half the story. Itis volume which completes the picture. And in the next chapter we start to consider volume from firstprinciples. Chapter Four Volume Price Analysis — First Principles [On the continual learning in share investing] Wherever learning curves begin in this mercurial business, they never seem to end.
John Neff In this chapter I want to start with some basic tenets for Volume Price Analysis VPA, but first of all,let me set out what I believe are the guiding principles in order to be consistently successful as atrader using this approach. I must stress, these are the principles I use every day, and have beendeveloped over 16 years, since I first started using this technique based on Albert's teaching. Despitethe cost and surreal experience, I am eternally grateful to Albert for setting me and my husbandDavid on the right trading road.
And I hope this book will do the same for you. Now, these are not rules, but simply guiding principles to help to put the rest of what you are about tolearn into context. And just as an aside, for the remainder of the book I will be referring to VolumePrice Analysis as VPA — it's quicker and easier for you, and for me!
Principle No 1: Moreover, it is not a technique that lends itself easily to automation or software. Although itdoes take a little while to become proficient, you will be rewarded for your effort and time.
It canthen be applied to any instrument in any market in any time frame. The reason software does not workwith VPA, is simply that most of the analysis is subjective. You are comparing and analysing pricebehaviour against the associated volume, looking for confirmations or anomalies, whilst at the sametime, comparing volume to judge its strength or weakness in the context of volume history.
A software program, does not have any subjectivity in its decision making. Hence it can never work. The other advantage is that once you have learnt this technique, it is effectively free to use for life! The only cost is any data feed you may need for the live volume, and your investment in this book! Principle No 2: PatienceThis principle took me some time to learn, so I hope that I can save you a huge amount of wastedeffort here.
The financial market is like a super tanker. It does not just stop and turn on a dime or sixpence. Themarket always has momentum and will almost always continue beyond the candle or candle patternwhich is signalling a potential reversal or an anomaly. When I first started, I always became veryexcited whenever I saw a trading signal, and would enter a position immediately, only to see themarket continue on for a while before the signal was validated with the market duly changing course.
The book is not interesting to read so I won't recommend I found this book very narrowly focused on a specific technique of trading without describing much about the actual traded financial instruments. The book is not interesting to read so I won't recommend spending time on it. It seems logical This book receives five stars from because it's an exciting read that makes logical points on how volume and price are what you need to become successful in your trading endeavors.
With that said, there are created diagrams and some charts from a trading platform to help you visualize the process. I'm just a very visual learner so in no way would I penalize the excellent read because It seems logical This book receives five stars from because it's an exciting read that makes logical points on how volume and price are what you need to become successful in your trading endeavors.
I'm just a very visual learner so in no way would I penalize the excellent read because of my weakness. Now it's time to read her other books. Happy trading! May 24, Brian Yan rated it really liked it. In this book, Anna Coulling describes the relationship between Price and Volume in a very rudimentary level. If you're new to trading commodities, this would be a great book to start off with. For more experienced traders, this book serves as a reminder of how price and volume interact with one another and you'll be able to skim through most of the book.
Mar 05, Elwi rated it it was amazing. I'm a newbie in stock trading. I find this book is easy to understand and applicable in every markets, including Indonesian Stock Market. Volume and price is correlated so well so that I can make better trading decision. Hummm Learning and growing. Seems anyone should be able to do it. The price and volume explanations in this book are amongst the best I've seen.
Deffenently worth your time. May 28, Gin rated it it was amazing Shelves: Book every trader should read opens your eyes to more indepth analysis of markets and jow they work and what you can use to your benefits. Great Great insight into insider trading and how to trade with the market makers. I really enjoyed this book. It's on my top 5 list. Poorly written. Easy to read and understand Easy to read and comprehend a complicated subject. Now I get to practice and see how it works in the real world.
May 31, Zandelicious rated it it was amazing. Mar 25, Terry Kim rated it it was amazing. You hear the saying "You cant judge a book by its cover". This book made me think "You cant judge a book by its price". I've always knew Volume is an important indicator but this book really helped opening my eyes to see Volume Price relationship.
It will take a bit of practice analysing the volume, but it will change the way you perform Technical Analysis You hear the saying "You cant judge a book by its cover". It will take a bit of practice analysing the volume, but it will change the way you perform Technical Analysis or just viewing charts permanently.
Since noticing Volume, viewing charts seem three dimensional. You can gauge at the real movements by the market makers, insiders and big banks. A must read for anyone who looks at charts and unless your some pro tape reader, who doesnt look at charts?
Must read Thank you for such a complete manual for all traders. As a former educator, this book has a wonderful learning function which kept me interested, challenged and excited to practice a new skill. Thank you again, success report to follow! Price and volume tell the tale for what is happening with a stock. The auther provides an excellent course on how to read the price ad volume action of a stock. No need for fancy wiz-bang technical indicators if you can read the tape.
Very helpful!! But to use them in your actual trading, coding skills are essential. It contains engaging analyses of volume at turning points and support and resistance.
A Complete Guide to Volume Price Analysis
One drawback of the book is the many references to his Ord Volume tool which is available for a fee on his website. Hence, you will find that several books above refer you to their paid software or website.
Think carefully before you pay extra for any software or website. With some coding skills , you can usually replicate what they are offering. Furthermore, the paid services will not make you profitable. They might help, but the most valuable takeaways from these books are the analytical concepts and examples.
The best approach is to internalize the trading ideas and incorporate them into your trading framework. My Recommendations For A New Trader If you are new to trading, you might still be at a loss as to where to begin your education.It is the relationship in relative terms which is important. Now it's time to read her other books. Yet when combined withvolume, this essential technique becomes even more powerful.
I'm just a very visual learner so in no way would I penalize the excellent read because It seems logical This book receives five stars from because it's an exciting read that makes logical points on how volume and price are what you need to become successful in your trading endeavors. It forms the basis of price action trading, which is perfectly valid in it'sown right. However, assoon as we start to close our sprinkler valve, pressure increases and the water travels further.
One of the best volume analysis books I've ever read. In other words, a small amount of volume activity willonly result in a small amount of price action. Then the truth will dawn on you. Various charts were presented during the pitch and all the while Albertexplained he was searching for an elite group of traders.
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