Keep in mind that I only use the volume spike to confirm signals at key areas . Thats the important thing . Without intuition/common sense its easy to get hurt taking these CONDITIONS alone as an entry . Thats the pitfall I suspect that most fall into employing indicators , they allow the indicator to tell them when to enter without fully understanding WHERE they will have a high probability entry .
That's why I study that "simple stuff" and want to make it structured and clear in order to use.
Everyone who can participate in that work with critics and ideas and welcome.
When that will be completed it will be shared here, on Mike's forum, openly and in details.
That's one of the things I call "market nature" which even if disclosed (i.e. not kept in big secret) can not be "spoiled" as no one can change 2 simple things price and volume.
After that I want to revert to my study of "market ranges" which will add huge value to that price/volume indicators/rules.
P.s. I'm of 100% all things that really work are very simple, that's why exact and really working.
60-70ties traders hadn't all that stuff what we have, but traded better than we, what they had ? Volume and price, that's why they studied that a lot and were focused on that. That also correlates with as I call it "human and technical" laws of market as market drives 2 things human behavior and "technical" aspects/calculations, so if simple and in 2 words it's just market inflow/outflow which will work always.
P.s.s. market is part of nature as all we are and as all are in our worlds, so it's simple logic that it has also it's rules and laws
P.s.3 I'm not just genius, I'm simple man, that's why I always glad to find buddies who also interested in the same to have discussion/critics and order to make things really good.
I respect intuition, but I'm of opinion that it should be used only for emergence cases.
While in work should be deployed only simple and clear rules, like in driving car.
I will be glad to discuss with you further also "key areas" as there are a lot of hype about it, but suggest to revert to it after all will be clear with "volume", that is second, but also very necessary step developing "clear view of market"
All we need is just exactly see what markets do ? right ?
Again it's like driving, when you drive you see what other cars do and adjust yourself accordingly.
I love Keep It Simple! I was also trying to get a cool correlation between price action setups and volume analysis, so this is going down the right road! the main goal is to learn so... by all means =)
Im reading the book cunparis advised on volume analysis by Tom Williams (i can send it to you if you want), it really teaches you stuff about what volume spikes mean and how to interpret it along with what price is doing.
To me this is the ABC of trading. All the rest, indicators and such, are just to give trader an edge, providing them information thats hidden.
At least for now, im looking to master price action and volume correlation, so i find the rest too much confusing and unecessary.
Breakout lines can be draw very easily when you know what you are looking for, and what the market is telling you.
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