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I have played with both William's and Granville's on balance volume methods and
found them both lacking as an indicator that was really useful. No one has
entered the factor of options and their contribution to volume. How much of the
volume in stocks is a direct relationship to spreads set up by overvalued and
undervalued options. I don't know about now, but when I was on the floor IBM
traded a greater volume in Chicago then in New York. How much of that is true
today I can't say. It is a factor though that has not been followed in this
thread and has a direct impact on price action. Ira
Curt Fox wrote:
> ----------
> > From: charles meyer <chmeyer@xxxxxxxx>
> > To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> > Subject: VOLUME DISCUSSION ANYONE?
> > Date: Friday, October 30, 1998 10:30 AM
> >
> > Anybody else have anything relevent to post on
> > this subject?
> >
> I agree with your post on volume. The changes in volume during rallies and
> reactions of the cash s&p, dj30, and nasdaq are very subtle. Wyckoff
> teachings say that during accumulation, look for heavier volume on rallies
> and less comparative volume on reactions. I believe that there are just so
> many daily crosscurrents in the market these days, making volume harder to
> use as a daily indicator.
>
> To me, a great example of volume analysis was the retest of the lows on the
> Dow from Oct 1st to Oct 8th. Three of those days had extremely heavy volume
> giving up little or nothing to the downside. This suggests demand
> overcoming supply at a very important support level, I might add. To be
> honest, I missed the bottom although it was staring me right in the face; I
> put too much weight in the broader indices and the AD Line.
>
> Curt
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