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Things are kind of quiet right now, so I'll post a question that has been
troubling me. I am a short-term trader (three days to a couple of weeks). I
want to use volume to help my trades. I have tired testing Volume
Oscillators and Volume ROC in my trades, but they both seem to give me as
many false signals as good signals.
I am beginning to think that volume may not be such a good indicator for
buy and sell signals on short-term trading. A straight Volume indicator
seems to be as good as any I have found, and it's not all that good. I have
read that some traders don't use volume at all, and that other traders
don't agree on what volume signifies on the chart.
I was trying to get my volume indicator to tell me two things when I was
testing it.
First, when the market is moving sideways, I was trying to separate the
real MA uptrend buy signals from the false by looking for increase volume.
(Which does not always happen. Sometime volume even goes down, stays about
the same, or goes flat, on the start of an uptrend.)
Second, after I am long, and the trend is going up, I want to separate the
false tops from the real top. That is, there are always several adjustments
on the way to the resistance level top, and I thought volume might help me
locate them so I would not sell to fast when the price crossed my MA. If
volume would tell me what was going on (or give me some suggestion) during
these adjustments, I would know if I should get out then, or wait and see.
I have pushed price indicators to *my limits.*(Not your limit, buy mine.) I
can't seem to get much more out of them no matter what I try. I was hoping
to find some way to use volume to give me that extra 3% edge. But, to me,
volume is just too weird. Sometimes it acts like it has no connection with
price, and other times it is right on the money.
I am looking for a volume indicator that you think works, and under what
circumstances. (Remember that I am a short-term trader, and that it has to
work with my trading.)
Regards
Zane Kori
Abilene, Texas
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