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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Peter V who wrote (4972)	6/3/2010 6:22:40 AM
From: GROUND ZERO™	Respond to of 220208

does your model account for trading volume? Excellent question, but no... My model pays no attention to volume... the model is based solely on price and time... there are time limits for all price action... so, when a market rallies, based on the broader chart pattern, there is only so much time allotted for that rally before that rally runs out of time, this can happen at any price, this means that price alone as support or resistance points are meaningless themselves without the component of time as a vital companion in that measurement... only when time and price cross paths will you have a change in market direction... the same in reverse for a down trend, this is why I've been posting here for the past several weeks that the deadline for the selling is June 3rd provided we close above the vertical price of 1065.30 on that very date... well, here we are and on June 2nd, and right on schedule, we have our buy signal fully confirmed... Some have said this rally has no teeth due to the low volume. Your thoughts? I'm sure volume plays a role somewhere in how these markets behave, but by paying attention to volume I believe we're taking our eye off the ball... I'm not trying to diminish the role of volume here, and some are highly astute in trading by measuring volume, but I don't think considering volume is necessary for picking market turns... But still, if volume influences price, then it would already be factored into the model as a result of the price action itself as reflected in the daily chart, so volume is already included in the price over time... my model measures only price and time, and nothing else is necessary, and this current buy signal is an example of how important time itself is to trading these markets, since I'm been waiting for June 3rd for the past month... you can trade time as well as trade price, both are equal and should not be treated as two separate entities... GZ