NexusFi: Find Your Edge


Home Menu

 





Why do we need to analyze the volumes?


Discussion in Traders Hideout

Updated
    1. trending_up 4,386 views
    2. thumb_up 0 thanks given
    3. group 3 followers
    1. forum 3 posts
    2. attach_file 0 attachments




 
Search this Thread

Why do we need to analyze the volumes?

  #1 (permalink)
 John Trader 
Ukraine
 
Posts: 5 since Nov 2015

When do you earn on the stock exchange? Only then, when the price of the selected tool will move in the direction you need. The stronger and further the price moves, the greater the potential of your earnings / loss is. Price is driven by buyers and sellers. Who behaves more aggressive, that pushes the price. Price increases as long as there are buyers and begins to fall, when the number and the power of buyers decreases.
Do the news, fundamental data, support and resistance levels, the intersection of various sliding and etc. have an impact on the price? No, they don’t. If there’re few purchases, then the price falls. If there’re few sales - the price increases. That's the whole logic.
All these factors may affect the traders, as they affect the price by their actions. It turns out that in order to predict the price movement - you need to predict the actions of market participants. The price is derived from their activities. And most of the different indicators are derived from the price.
The price is moved by major purchases or sales. It's not a secret at all. Small speculator or investor will not be able to move the price. A bucket of water will not “increase” the sea. But major player always moves the price, coming in a large way. He knows about it and is prepared for it.
And our task is very simple. To understand what is happening on the market. The battle between the small traders or activity of a major player? When we note it – we need to go in the same direction he has chosen. Then the probability to earn will be much higher.
Cheers!

Reply With Quote

Can you help answer these questions
from other members on NexusFi?
ZombieSqueeze
Platforms and Indicators
NexusFi Journal Challenge - April 2024
Feedback and Announcements
Request for MACD with option to use different MAs for fa …
NinjaTrader
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Retail Trading As An Industry
67 thanks
NexusFi site changelog and issues/problem reporting
47 thanks
Battlestations: Show us your trading desks!
43 thanks
GFIs1 1 DAX trade per day journal
32 thanks
What percentage per day is possible? [Poll]
31 thanks

  #3 (permalink)
 RielA 
Winnipeg, Canada
 
Experience: Intermediate
Platform: Sierra Chart
Trading: ES/ZB
Posts: 106 since Apr 2015
Thanks Given: 94
Thanks Received: 167


is this a rhetorical question?

Reply With Quote
  #4 (permalink)
 John Trader 
Ukraine
 
Posts: 5 since Nov 2015


RielA View Post
is this a rhetorical question?

many are not sure yet

Reply With Quote





Last Updated on December 13, 2015


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
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.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts