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I feel the same way. I could not figure them out. Sometimes the volume would
indicate more selling and sometimes more buying.
It may be better to use an oscillator or %r to show the extremes and if you
experience for instance a 100 or 200% increase in volume, that may be a sign
of a reversal. This would also be easy to test. Should work best on short
term I would think. This also could be tied into patterns which I think are
among the best indicators to use since they represent the actual price
Tony
-----Original Message-----
From: diamond <diamond@xxxxxxxxxxxx>
To: MetaStock-list <metastock-list@xxxxxxxxxxxxx>
Date: Saturday, February 07, 1998 12:09 PM
Subject: Looking for Volume Indicator
>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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