that nice upbar is what I was waiting when I told you the price was going to go up soonish.
The point is I knew there was a considerable upmove playing but I didn’t consider timing.
Timins is a factor and while you wait for the right setup you end up loosing a lot of money.
I enteres 20 min before it, going long, put a stop loss 3 pips above the min it reached right before that long bar. Again I lost a move I knew was going to come.
I wasn’t in front of the screen, but even if I was it wouldn’t have been easy to enter, take a loss then re enter.
The direction of the move is easier than timing.
What do you think about timing?
Luca
Time is an important part of reading the charts. Market goes though cycles.
For example, NY close to Aisa open usually retraces the last NY trend so big money can load up on the trend again during others profit taking.
Then first hour of london is important. Getting a good read from that first hour is helpfull for the whole session…but watch for news to affect timing.
Then you usually have a pause in action while markets wait for NY open, and that session is most revoled around news…and so on.
It could dip more first. Sometimes in this situation you’ll see a news move to get a lower price, then it goes up…never know. I’m just going with the probability as I see it.
It looks like a beautiful H&S.
USD is oversold. USD index at support of trendline.
Then the AUDUSD looks ready to…
Point is price is dancing at the top without really high vol kicking in.
Instead vol kicked in when AUDUSD retraced today.
It looks as if it’s going higher.
Who makes the market wouldn’t want to give anybody the satisfaction to get such a “obvious trade”
Main issue with volume of course is that there is no central exchange in forex and the volume you see in MT4 only relates to the volume of trades in that specific broker which will be less than 1% of the market by brokers and in terms of total volume more like 0.5% of actual volume.
Still a valid approach don’t get me wrong but just don’t read it as though the whole market is buying or selling. The only way to get a more complete picture of volume is to use something like esignal which gathers brokers feeds from about 140 different banks rather than the single feed from your broker - still not ideal but a better picture. Acuity workstation also does something similar but both these systems are expensive
Volume is based on price change (ticks). Price change is not that “different” from broker to broker. How is my broker telling me less than 1% of the market, when it’s charts are 99% the same as all the other brokers charts. More like it’s telling me 99%, right?
You call it a “valid approach” lol…sorry I have to laugh. It’s the ONLY approach to take if you want to know what the money that moves the market it up to. Of course you can wait for your indicators to tell you…laaag and all.
Esignal is a waste…I compared it to other brokers, and used the broker that was most similar…and it is VERY similar believe me. The info gives the same conclusion as esignal.
I’ve been hearing this “volume in forex is not valid” stuff a long time now. Guess I’m just lucky. :rolleyes:
Have extensively read your Madscalper thread and so far I am loving it. Fairly new to trading/Forex, so I’ve never really had much of a system to trade with until I read yours. So far I’ve made 8 trades since last Thursday, 5 wins for +25 pips each and 2 losses for -12 pips each (I used a 25 pip TP and a 1.5ATR (minimum 10 pip) SL. Currently short in the EURGBP haven take half off the table at +15 pips and hoping the rest will run another 15 or so. All in demo, ofcourse.
The reason I’m posting this in here is that you said in your MadScalper thread that you barely trade that strategy now as volume based trading is giving you ample signals/profits. I must admit that I’ve only skimmed over what you’ve posted in this thread but to be honest, I can’t figure out how you are trading with volume. I understand about higher volume + candlestick pattern giving you signals, but when I’ve tried looking at it on my own I just can’t seem to figure out why you’ve entered where you’ve entered but skipped other signals etc. The thing I liked about Madscalper was the clearly defined rules about trading with trend/entry signal/SL + TP etc. It was a step by step formula. I understand if you don’t have the time, or would prefer not to disclose, how you trade with volume step by step, but if wouldn’t mind clearly defining some rules that would be brilliant.
Oh, and well done on that long. An easy 50-60 pips.
I think if you re-read my comment you’ll find that I am neither bashing volume as a tool (just highlighting to other readers the potential limitations of what one specific broker says) nor rubbishing your system. Im just advising caution as anyone should tred with caution because MT4 or other systems retail traders have access too do not have anywhere near the same level of information the systems used by the the big institutional money managers and banks - ie the guysbwho actually move the market. Same reason why we pay much higher sprads than institutions.
If it makes you money than fantastic. Very few retail traders do
Use a demo from a broker that is similar to esignal, problem solved. Some of the best are ODL, SpotTrader, IBFX.
I can appreciate your intelectual aproach, but it’s theoretical. I’ve been reading volume a long time now, I haven’t run into the “limitation” you speak of.
Those volume bars talk to me. They tell me where big money is buying and selling, and it doesnt lie. I can just tell you my experience.
Mad Scalper takes advantage of 1 particular situation that price finds itself in. An established trend. Then a pullback. Then a minimum average price movement in the trends direction again is required for entry.
It’s one of few situations where I find moving averages usefull.
On the other hand, volume is constantly giving you possible setups, or “situations” that you can trade. It gives you a probability of the outcome of that situation in real time.
For example, price moves up to resistance. Basically only a few things can happen. Sellers come in and cause price to reverse off that resistance. Sellers don’t come in and price continues through. Lastly, indecision or lack of market activivty, if price stalls at the resistance.
So, we read the volume and candle reaction to the test of that resistance (as described in this thread) to give us the answer. If the answer is clear we take the trade, if it’s not, we wait and the market is probably undecided or losing activity.
That’s an example of one situation. Others would be fibb levels, patterns etc.
You can see the vast difference between the two. Volume let’s you trade along with the market and understand what’s happening. Indies tell you averaged out price movement…very limited uses (speaking of limitations in an earlier post lol).
So, yes…Mad Scalper is good for noobies, but they’re basically waiting for that one situation to pop up out of ignorance to what’s really going on. That’s ok…pips are pips, but when you are really ready to understand the market, get into Volume and don’t give up.
