Question about Volume - Traders Hideout | futures io social day trading
futures io futures trading


Question about Volume
Updated: Views / Replies:943 / 8
Created: by mirk Attachments:2

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Question about Volume

  #1 (permalink)
Trading Apprentice
Memphis, TN
 
Futures Experience: None
Platform: thinkorswim
Favorite Futures: Stocks
 
Posts: 4 since Apr 2012
Thanks: 0 given, 0 received

Question about Volume

Hello.

I am very new to trading and I'm just trying to do some research but I can't find an answer to my question about volume anywhere. As far as stocks are concerned in day trading, volume is the amount of trades done per candle tick, I understand. What I don't understand is whether volume is the amount of stock sold in a bear candle or the amount of stock bought in a bull candle. Or is it a mixture of both where a bear candle's volume would mean that more shares were sold than bought and a bull candle's volume would consist of more shares bought than sold.

And if it is a mixture of both sold and bought, how is it possible that there could be more sold than bought or more bought than sold? Is there a another entity other than a buyer and a seller that holds these stocks? If so, what is that?

Thanks.

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Elite Member
Berlin, Europe
 
Futures Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
 
Fat Tails's Avatar
 
Posts: 9,653 since Mar 2010
Thanks: 4,226 given, 25,601 received
Forum Reputation: Legendary



mirk View Post
Hello.

I am very new to trading and I'm just trying to do some research but I can't find an answer to my question about volume anywhere. As far as stocks are concerned in day trading, volume is the amount of trades done per candle tick, I understand. What I don't understand is whether volume is the amount of stock sold in a bear candle or the amount of stock bought in a bull candle. Or is it a mixture of both where a bear candle's volume would mean that more shares were sold than bought and a bull candle's volume would consist of more shares bought than sold.

And if it is a mixture of both sold and bought, how is it possible that there could be more sold than bought or more bought than sold? Is there a another entity other than a buyer and a seller that holds these stocks? If so, what is that?

Thanks.

There are always as many buyers as there are sellers, as each transaction needs a buyer and a seller. Stocks can be bought and they can be shorted. Therefore any transaction can be composed from the following

(1) somebody buying stock, somebody else selling stock
(2) somebody buying stock, sombody else selling stock short
(3) somebody buying to cover a short position, somebody else selling stock
(4) somebody buying to cover a short position, somebody else selling stock short

For stocks transactions (1) is the most frequent one.

A bull candle shows that buyers are more eager to buy as sellers are eager to sell. Buyers are willing to buy the (higher) ask via a market order, while sellers sell the ask via the limit orders sitting in the order book. This drives price up.

A bear candle shows that sellers are more eager to sell than buyers are eager to buy. Sellers are willing to sell the (lower) bid via a market order, while buyers buy the bid via the limit orders sitting in the order book. This drives price down.


Last edited by Fat Tails; April 23rd, 2012 at 11:59 AM.
Reply With Quote
The following 4 users say Thank You to Fat Tails for this post:
 
  #4 (permalink)
Trading Apprentice
Memphis, TN
 
Futures Experience: None
Platform: thinkorswim
Favorite Futures: Stocks
 
Posts: 4 since Apr 2012
Thanks: 0 given, 0 received

Thanks for the response.

Reply With Quote
 
  #5 (permalink)
Market Wizard
New Orleans, La (Mardi Gras City)
 
Futures Experience: Advanced
Platform: NinjaTrader
Broker/Data: Ninjatrader / Optimus Futures / AmpFutures
Favorite Futures: ES / 6E / 6B / CL
 
DavidHP's Avatar
 
Posts: 1,002 since Aug 2009
Thanks: 802 given, 1,367 received


Steven Sontag View Post
I wonder about having bars that are equal in volume. Is there software that does this?

Ninja can create Volume Bars.

Also, there are overlays that will create an Equivolume Bar that expands with higher volume.

Rejoice in the Thunderstorms of Life . . .
Knowing it's not about Clouds or Wind. . .
But Learning to Dance in the Rain ! ! !
Reply With Quote
 
  #6 (permalink)
Site Administrator
Manta, Ecuador
 
Futures Experience: Advanced
Platform: My own custom solution
Favorite Futures: E-mini ES S&P 500
 
Big Mike's Avatar
 
Posts: 46,240 since Jun 2009
Thanks: 29,352 given, 83,229 received

Examples of Volume Bars, and an existing thread that covers this topic.

https://futures.io/ninjatrader/19340-volume-bars-anyone-have-experience-these.html

Mike

Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help?
1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first.
2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses.
3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make.
4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance.
5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers.
6)
Help using the forum? Watch this video to learn general tips on using the site.

If you want
to support our community, become an Elite Member.

Reply With Quote
The following user says Thank You to Big Mike for this post:
 
  #7 (permalink)
Elite Member
Berlin, Europe
 
Futures Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
 
Fat Tails's Avatar
 
Posts: 9,653 since Mar 2010
Thanks: 4,226 given, 25,601 received
Forum Reputation: Legendary


Steven Sontag View Post
I checked them out and they are fake. All bars are the same distance from each other. To be true equal volume bars the distance between bars needs to depend upon the volume.


Somebody who did not bother to have a look into the user manual...


You can select between


(1) equidistant bar spacing -> in this case the time-axis is non-linear, the option is only available, if you load a single bar series on your chart

(2) non-equidistant bar spacing -> in this case a linear time axis is used, and volume bars are spaced according to the time they take to develop

Reply With Quote
The following 2 users say Thank You to Fat Tails for this post:
 
  #8 (permalink)
Market Wizard
New Orleans, La (Mardi Gras City)
 
Futures Experience: Advanced
Platform: NinjaTrader
Broker/Data: Ninjatrader / Optimus Futures / AmpFutures
Favorite Futures: ES / 6E / 6B / CL
 
DavidHP's Avatar
 
Posts: 1,002 since Aug 2009
Thanks: 802 given, 1,367 received


Steven Sontag View Post
I checked them out and they are fake. All bars are the same distance from each other. To be true equal volume bars the distance between bars needs to depend upon the volume.

Maybe you did not see the CandleVol ChartStyle script.
This ChartStlye makes the candles various sizes that adjust with volume.
(make the 'bar width' at least 15 to make the volume changes more noticeable)

But all of this is covered in the thread Mike posted.

Rejoice in the Thunderstorms of Life . . .
Knowing it's not about Clouds or Wind. . .
But Learning to Dance in the Rain ! ! !
Attached Thumbnails
Question about Volume-5-min-candlevol.jpg  
Reply With Quote
 
  #9 (permalink)
Elite Member
manchester, england
 
Futures Experience: Intermediate
Platform: ninjatrader
Broker/Data: pfg best
Favorite Futures: oil
 
Posts: 289 since Apr 2011
Thanks: 285 given, 393 received

Equal volume bars


Steven Sontag View Post
I checked them out and they are fake. All bars are the same distance from each other. To be true equal volume bars the distance between bars needs to depend upon the volume.

Hi here is a screenshot of a 700 volume chart from the Ninja Trader platform.. You can see that the bars are different in range because of the distance price has travelled during the exchange of contracts between buyers and sellers. Hope this helps

Attached Thumbnails
Question about Volume-700-volume-bar.png  
Reply With Quote

Reply



futures io > > > Question about Volume

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
GomDeltaVolume - total volume count question josh The Elite Circle 6 September 11th, 2012 01:11 PM
Average Volume Question/s TonyB ThinkOrSwim 0 December 3rd, 2011 03:59 AM
is there bid volume X ask volume in the gomiladder indicator ebdvi The Elite Circle 4 November 29th, 2011 03:02 PM
Volume/Avg volume for ES, TF emini_Holy_Grail Emini Index Futures Trading 1 October 10th, 2011 08:33 AM
stop volume/ spike volume cory Traders Hideout 6 June 29th, 2009 11:13 PM


All times are GMT -4. The time now is 08:46 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-13 in 0.13 seconds with 20 queries on phoenix via your IP 54.160.245.121