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Title: Which volume is right? Post by: Wary on August 20, 2014, 03:36:58 AM While nothing much happening, I'd like to ask a noob question: Which volume is considered right? I mean, we can often hear something like "It's not real bounce/reversal, because volume isn't right", so the question. How can we tell whether the volume is big/small enough to be a confirmation of something. And more general, what volume can tell us? There must be a reason it's placed on graphs, just below the price :)
Title: Re: Which volume is right? Post by: adamstgBit on August 20, 2014, 03:43:59 AM here an example of using volume to understand a situation
looking back at the last 10 days we can clearly see the bubble popping and the first good attempt at catching the resulting knife. http://s14.postimg.org/9dp4l5oa9/Untitled.png you can see that when the bubble popped at ~266$ their was a big dip in price without much volume ( everyone let the knife fall ) but now at 80-50$ rang we are seeing HUGE volume spikes when their is any kind of movement up or down. I think if we are not already at bottom, its not too far down... also i would like to add that when you can't look at stamps volume and compare it to the volume stamps use to see 6 months ago, its a well known fact that volume has been spreading out onto new exchanges and funds coming online. Title: Re: Which volume is right? Post by: EricTyle on August 20, 2014, 03:58:46 AM also i would like to add that when you can't look at stamps volume and compare it to the volume stamps use to see 6 months ago, its a well known fact that volume has been spreading out onto new exchanges and funds coming online. Care to explain? I'm lost here by what you are intending to say Title: Re: Which volume is right? Post by: Wary on August 20, 2014, 04:04:49 AM here an example of using volume to understand a situation Thanks!looking back at the last 10 days we can clearly see the bubble popping and the first good attempt at catching the resulting knife. http://s14.postimg.org/9dp4l5oa9/Untitled.png you can see that when the bubble popped at ~266$ their was a big dip in price without much volume ( everyone let the knife fall ) but now at 80-50$ rang we are seeing HUGE volume spikes when their is any kind of movement up or down. I think if we are not already at bottom, its not too far down... also i would like to add that when you can't look at stamps volume and compare it to the volume stamps use to see 6 months ago, its a well known fact that volume has been spreading out onto new exchanges and funds coming online. Title: Re: Which volume is right? Post by: RyNinDaCleM on August 20, 2014, 04:07:00 AM You can tell a trending move because volume rises as the move progresses.
These are Daily charts. Notice the Bullish trend and that volume rises with the trend. Then, during the correction, you get dwindling volumes https://i.imgur.com/2bdsjwm.png This is zoomed in, though still a Daily chart, but you can see the trends within the trends https://i.imgur.com/2WWLrng.png We are trending down in the correction currently. The very huge spikes of volume in the first chart are capitulation events Title: Re: Which volume is right? Post by: adamstgBit on August 20, 2014, 04:07:04 AM also i would like to add that when you can't look at stamps volume and compare it to the volume stamps use to see 6 months ago, its a well known fact that volume has been spreading out onto new exchanges and funds coming online. Care to explain? I'm lost here by what you are intending to say for a short time stamps had most of the volume then new exchange come online and poeple moved to these exchanges so now stamps doesn't have the same market share it use to, so it sees less volume these days. Title: Re: Which volume is right? Post by: RyNinDaCleM on August 20, 2014, 04:10:07 AM also i would like to add that when you can't look at stamps volume and compare it to the volume stamps use to see 6 months ago, its a well known fact that volume has been spreading out onto new exchanges and funds coming online. Care to explain? I'm lost here by what you are intending to say for a short time stamps had most of the volume then new exchange come online and poeple moved to these exchanges so now stamps doesn't have the same market share it use to, so it sees less volume these days. But you can still compare day to day. You just can't compare today to November 2013 Title: Re: Which volume is right? Post by: adamstgBit on August 20, 2014, 05:16:35 AM also i would like to add that when you can't look at stamps volume and compare it to the volume stamps use to see 6 months ago, its a well known fact that volume has been spreading out onto new exchanges and funds coming online. Care to explain? I'm lost here by what you are intending to say for a short time stamps had most of the volume then new exchange come online and poeple moved to these exchanges so now stamps doesn't have the same market share it use to, so it sees less volume these days. But you can still compare day to day. You just can't compare today to November 2013 The process of coins moving to hedge funds and other exchanges is ongoing but that shouldn't have to much of an effect day to day... i guess, idk. |
