[RT] Re: Using Volume in designing indicators

[GREHERT@xxxxxxx]

<< When it comes to the daily stock market I have found that volume is VERY
 significant. For example, if you have some price formation like a key
 reversal, it's statistically much more meaningful if it occurs on an
 INCREASE in volume from the day before. >>

RE: Using Volume in EL studies

I use volume in all my "good" indicators.  It gives me a definite "edge" in 
trading stocks.  What I don't accept is that the best way to design systems 
is to compare today's volume with yesterday's volume (ala William O'Neil 
writings).  By doing that you bring into play a critical, additional variable 
-- yesterday's volume.  I mean what if yesterday was Christmas Eve?  

I generally compare today's volume with a 40 day SMA of Volume; or an even 
better method I'm moving to is to use the (StockVol)/(S&PVol) ratio as a way 
to correct for quiet days in the market.

<< When it comes to the daily stock market I have found that volume is VERY
 significant. For example, if you have some price formation like a key
 reversal, it's statistically much more meaningful if it occurs on an
 INCREASE in volume from the day before. >>


Good Trading

Jerry Rehert