Aye, the coloured break up into sessions is quite handy you can download the indicator here Indicators, but do note that I have done a lot of research to find which broker provides the best volume data for this purpose, you can use any, but using either Deltastock or MBtrading will make it easier to spot your entries, and for me easier is always best.
“It’s not my only trade of the day, I did have a loss, but personally I don’t see much point in giving examples that don’t work out, it’s just clutter.” by PPfx
Personally I learn more from the losses - what went wrong? Didn’t follow the rules, ignored trend or S/R, news? d
It’s just that some setups are more reliable than others, it was an aggressive trade I took.
BTW, no trading today, I just looked at the chart and thought yuk, not for me.
I’ve begun to quietly follow along with this; it seems like such an understandable concept and I’m getting itchy sitting here watching the days~long swing trades, thinking: what else can I learn? I’m actually in Southern California and while I’m up quite late, certainly late enough for LO it’s a rare night that I’m up past dawn. Making it really hard to catch the LC / NYO killzone without extreme sleep deprivation.
Just pulled down your indicator and was poking around your site. If I make major gains I’ll say something, but I’m in the ‘take it slow’ mode at the moment. One thing I like to do is just watch the market from a particular perspective, without even demo trading. Might do that for a few weeks. This is definitely on the ‘deep study’ list though.
Yes I might be biased 
but for me it is the easiest strategy to follow, it might not be the very most powerful strategy but it’s up there with the best of them. VSA tends to take along the path of finding the end of moves with up and down thrusts which implies that your trades will be countertrend, which is fine, but I find picking up on a move a whole lot easier and I think it’s foolish to ignore the old saying ‘The trend is your friend’.
I find it quite intriguing which timezones are best to trade for different people, for traders that want to trade during the normal working day, GMT is unbeatable, you get the London and Ny open. Then for people right in the middle of the Atlantic if anyone lived there it would be quite handy for the one’s who want to put in a couple of hours before going to work. Then in the States it’s about the same, but you would need to get up pretty early in the morning to catch the best of before going to work, but it’s Ok for traders that can trade during the day, it’s morning only and afternoons off basically. Then I imagine Europe can be damned awkward for people that work during the day, your in work well before you get any decent volatility, but you can get the occasional Asian session setup, and by the time they get home, it’s gone dead again. Then the further east you go, it’s great for evening traders I would think, catch the NY session. (BUT I digress)
Desmond, as a matter of interest which broker are you using for your volumes?
Right now I’ve got an Oanda (USA) demo account with MT4 enabled, and I’ve just added your indicator to my chart earlier tonight.
So I presume it’s volume data from Oanda, but my knowledge of the inner workings of brokers is rather lacking.
I trade with Oanda, but it’s Volume data I would NOT use for this purpose,use one of these -Indicators
It will make a big difference.
Ah thank you! I messed up and just tossed the first indicator on the Oanda data. It makes a lot of sense that some market volume data is better than others. I’m a tad distracted tonight (due to my other business).
VERY glad you caught this detail before I went on studying it for three weeks the wrong way!
Edited: now have a Deltastock demo running for volume indication.
Hi PurplePatch,
I saw this opportunity earlier for an entry to go short. Low volume following a peak
This may have been a little aggressive because the volume wasn`t that much lower.
That’s exactly the idea, I thought it was a little aggressive, I didn’t take it but I took something quite similar yesterday and got stopped out, it’s all par for the course, there will always be a discretionary element.
But those patterns you can trade them on the break, but they are safest when the next volume is higher, my session volume indicator has a prorata indicator that can show if the volume is likely to be higher, so on the break with a higher prorata volume you can short it on the break with some confidence.
Also if you notice the volume on your red line is the lowest since 7am GMT+1(BST) except for the first couple maybe, which you should treat with discretion anyway, that’s why I have mine coloured so I can easily spot the lowest volume of the day.
And it sure fits a 17 PIP stop and 30 PIP TP too, well maybe not quite from your entry but you’ve certainly got the idea.
can you explain the rule to enter short or long in points like 1 2 3 ?
and if I put session volume indicator in any broker without any change in input … is there a problem ?
thanks very much
We are looking for low volume peaks to enter short, and low volume troughs to enter long, have look at the examples in this thread.
The answer to your second question is here Indicators
Sorry to bring up an older post but I was reading back through the post and need something clearing up. I understand perfectly the logic behind decreasing volumes at a S/R level on a doji candle indicating the end to any breakthrough momentum but I’m not sure if I really follow this example correctly when you trade the break.
Is it as simple as the low volume on a green candle at the bar indicating very low buying momentum, then the support breakthough with increased volume indicates strong seller pressure? What confuses me is the higher volume on the red doji on the left of the green candle, doesn’t this indicate an inability to rebound (i.e. strong selling pressure) or am I reading to much into it? Does it not matter once the green candle shows how weak the buying pressure is?
This is kind of the very point I’m making with this strategy, I don’t read too much into it, I just know I see that setup time and time again and it does the same most of the time.
I don’t even take notice of higher volumes, I ignore them completely, I just look for the lowest volumes of the day, those are my triggers. Ok if I read more into it my strike rate might improve still, but then again I might just suffer from paralysis analysis and lose more, it really is a KISS mantra, and it’s a highly profitable strategy that I trade exclusively now.
Soon as you see the lowest volume of the day you know then that something is about to happen it’s very significant, all you have to do then is pick the right way with a 17 PIP stop, the example you show is not a typical trend continuation, but nevertheless the setup is a trend continuation, but on a countertrend, so we are following the trend on the countertrend, yes I know what you say that sounds a bit hmmmm? but it’s true.
Ok, and now I have an answer to the 1,2,3,4 question.
1 Establish the trend by eye, and trade in the same direction.
2 Wait for the lowest volume of the day.
3 Does it correspond to a trough or a peak? If peak go short, If trough go long.
4 The more S & R the better.
5 SL 17 PIP, TP 30 PIP.
Note, there are easy, clear to spot with trend setups, stick to the easy setups first, those will be the most reliable and the best, then once you’ve got that under your belt, move on to the trickier ones like about.
But this week has been an awful trading week, I’m sure someone will disagree, but it really has been rubbish a rubbish week on the whole.
Thanks for the reply. So it’s just the low volume that are important got it, everything else makes perfect sense to me.
I’ve got a dedicated chart setup to your strategy now and I’m very eager to test it out next week (today is a snooze fest).
I didn’t trade this, I wasn’t at my station and they are always easy after the event, but a decent example at that, more than anything it illustrates how significant the lowest volume of the day just is, and as I keep saying, easy to spot!
Sorry it’s been a while, many reason which I won’t bother boring you with.
Not quite ‘textbook’, but another 30 PIPS+
Another 30 PIPS++, simple.
Another short at 1.3344 for another 30 PIPS!