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Posted May 24, 2011
Great volume book!
I just finished reading a new book authored by Buff Dormeier, CMT titled Investing With Volume Analysis. I found it was filled with great knowledge, indicators, and investment techniques that utilize volume analysis. Many analysts focus on price alone and forget the valuable information that volume conveys. Buff has put volume back in its rightful place next to price as one of the most valuable metrics an analyst can study.Was this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.
The book begins with a broad overview of fundamental versus technical analysis. Some background is given on TA, such a Dow Theory and a bit of general history. Buff then sets the stage for volume analysis by reviewing some of the broad studies and some general rules for how to interpret volume.
A review of volume in the context of traditional price patterns a la Edwards and Magee is very helpful for a focused review.
Following this broad review, the book begins to focus on the detail not found elsewhere. Volume indicators are broken down into logical groups. The indicators are then compared apples to apples according to their strengths and weaknesses. This section contains some of the gold within this book. It is clear and well defined and one soon finds it easy to agree with Buff's argument that there is value in a new area of study: volume-weighted price indicators.
Buff goes on to describe the formulas for many custom indicators, including Volume Weighted Moving Averages, Volume Weighted MACD, The Trend Thrust Indicator (TTI), Volume-Price Confirmation Indicator (VPCI), CAP-Weighted Volume, and the Anti-Volume Stop Loss.
Finally, Buff gives an overview of how one could picks stocks using a Market Positioning System. Modern day volume issues including high frequency trading is also covered.
Overall, I found Buff's Investing With Volume Analysis to be extremely helpful in focusing on an underutilized tool - Volume. The book is well written and provides great context and backtested studies to prove the worth of his concepts and ideas. My only criticism of the book is that some of the charts need to be enlarged. Overall, I would recommend this book to anyone serious about the investing in the market. In addition, All CMTs would benefit greatly from this book. - Kyle Crystal
Posted February 9, 2012
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