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In the continual pursuit for higher profits, investors and traders alike often assume significantly higher risks while chasing the next hot opportunity. Other more sophisticated investors attempt to employ complicated indicators while not fully understanding the information the indicator was designed to reveal. On the other hand, savvy investors employ analysis to gauge the market, positioning themselves to potentially earn higher profits with significantly less risk. Volume analysis attempts to delve deep inside...
In the continual pursuit for higher profits, investors and traders alike often assume significantly higher risks while chasing the next hot opportunity. Other more sophisticated investors attempt to employ complicated indicators while not fully understanding the information the indicator was designed to reveal. On the other hand, savvy investors employ analysis to gauge the market, positioning themselves to potentially earn higher profits with significantly less risk. Volume analysis attempts to delve deep inside the market trends to help identify shifts within the markets. Investing with Volume Analysis: Identify, Follow, and Profit from Trendspresents an enlightened perspective on the role of volume, not only in pragmatic terms but also in terms of apprehending the underlying rationale of how and why. Award-winning technical analyst Buff Pelz Dormeier teaches state-of-the-art methods for analyzing the relationship of volume to price movements and the evolution of market trends.
Chapter 1: Two Perspectives of Market Analysis 5
Chapter 2: The History of Technical Analysis 12
Chapter 3: Price Analysis 27
Chapter 4: Volume Analysis 32
Chapter 5: Volume: The Force of the Market 39
Chapter 6: How to Read the Market Like a Book 53
Chapter 7: Volume in Trends 73
Chapter 8: Volume in Patterns 93
Chapter 9: Measuring Volume Information 112
Chapter 10: Pure Volume Indicators 118
Chapter 11: Interday Volume Accumulation Indicators 127
Chapter 12: Intraday Volume Accumulation Oscillators 132
Chapter 13: Price Range Volume Indicators 140
Chapter 14: Price Accumulation Based on Volume Indicators 147
Chapter 15: Tick-Based Volume Indicators 151
Chapter 16: Volume-Weighted Price Indicators 157
Chapter 17: The Volume Price Confirmation Indicator 182
Chapter 18: A Compendium of Breadth Indicators 209
Chapter 19: Buff Up Your Volume: Introducing Capital Weighted Volume 226
Chapter 20: Risky Business 241
Chapter 21 Putting It All Together: Volume-Dictated Strategies 259
Chapter 22: Modern Day Volume Issues 281
Posted May 24, 2011
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.
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
No text was provided for this review.