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Technical Investment Methods - Analyzing market trends with technical methods.
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Posted by oiltrader72 on October 22, 2008, 1:32 pm
How =93Volume Spread Analysis=94 is different from typical volume?
Although methods for analyzing volume have been around since the
1930s, most traders do not understand the importance of volume
analysis, or volume spread analysis, in their trading. They fail to
understand that the fuel that drives price is not time, ticks, RSIs or
MACDs. Instead, it is volume that drives prices up or down. To better
understand this concept, think back to your Economics 101 class, when
demand exceeds supply, price increases and when supply exceeds demand,
price decreases. Volume is the measurement of the supply and demand in
the markets. In other words, volume is the fuel that drives the price
up or the lack of fuel that causes prices to go down.
Typical volume only measures the number of buyers and sellers in the
market for that particular price bar. This type of volume measurement
fails to look at the range of the bar or the open/close of the bar. So
if the number of buyers is greater than the number of sellers, the bar
is green. If the number of sellers is greater than the number of
buyers, then the bar is red. This is a very simplistic measurement of
volume and is only valid for that particular price bar.
With Volume Spread Analysis, we take an in-depth look at not only the
current price bar but the previous price bars, as well as the open,
close, high and low of the bar. In other words, when looking at the
range of the bars, who had more control, buyers, sellers, or was the
volume neutral. By using this method we can actually identify when
the professional money is entering or exiting the market.
If you like to know more about Volume Spread Analysis, the real key to
the successful trading go to our website http://www.hawkeyetraders.com
There are thousands of indicators and methods for trading and we are
often asked what makes Hawkeye unique?
The answer is quite simple =96 A systematic approach to trading with a
concrete trading plan. Every week we do live market trading sessions
with information on how to trade successfully using the Hawkeye
Indicators and Methodology in Forex, Futures, Stocks & Commodities.
Unique indicators based on Volume Spread Analysis (VSA), Standard
deviation, momentum, with money management and a clear, concise,
trading plan. We believe there is no shortcut to being a successful
trader; you actually have to learn to trade. As your career
progresses, you will understand that you are your own greatest
hindrance to success. We will teach you the advanced trading
techniques for the current market situations!
Visit our website http://www.HawkeyeTraders.com. Send us an email for
your FREE login information for the live trading room! You will feel
the difference!
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