Hi people, I did some long and hard research on all this volume and price validation and abnormality. It is working for as of now. I could see with much more certainty where the market might move. I use the duck system. But I back it up with price and volume analysis. Is paying up pretty well.
Emerald , would you shed some light on this ? I could see better now after deliberating practicing my analysis and research. But I agree, finding the point where big institution is having an interest is hard. I made 3 trades based on price and volume analysis. Is doing good at the moment. But I will need to look back at it after a longer term
Hi Joe, Well it works pretty well, especially when observing in higher frames but it is important you know what technical price level you are watching. The key here is just really observing a change in activity surrounding quotes. The more quotes, the more activity. This makes sense there is some big positioning. Even when you do spot it, you have to find the conviction to act and hold despite what will be a series of price moves that may appear to go against you.
You are observing the volume because it will imply distance price may travel as a consequence of the excessive trading. Providing you are right of courseā¦
Hi pipsmehappy, if the purple line is suggesting volume. I would read as a whole. The bears are hidden but strong. While the bull is going up but without much backing from activity. It looks to me price is going lower without being mark down. Which means a strong selling is happening sooner or later. There is also divergence. Bulls are losing steam. Those bulls are probably due to retails trader. And traps set from news from market maker , tips and all. Where as the big institution and capable is shorting . am not sure if this is right. But I am learning. This how I see it .
I am looking at the last-but-one candle on the right, showing Kiwi Dollar selling yesterday in this CME currency futures chart: see how the volume bar below confirms the move and is the highest volume in a month, as well as specifically the highest selling volume.
Hi Francesco . hope I spell your name right. Correct me if Iām wrong. Checked your bio. You are musician too. Iām a music educator myself. My love is in the jazz & r&b kinda music. Letās get back to trading. Hehe. I am currently using oandaās platform, fxtrade. I find it pretty good. Best part is their highly customizable lot size. Which appeals to me a lot. I can have 0.005 lot size for trade if I want. But problem is they donāt have any volume indicator. So I havenāt been look much into vpa nowadays. I just doing what they call the price action. Looking at s&r lines, and trading those moving towards the s&r lines . on daily tf only am I trading. Still Iām looking towards volume in future to help me to increase my probability in trades. And I have not investigate enough yet to pose you some question.
There are some basic principles under pinning volume. 1. Low volume rising price, signifies weakness. Value is not moving with price. However the turn is not predictable so suits long-term trading. I for example will happily put a couple of k on in terms of risk and sit in it till the turn. 2. High volume at extremes suggests a possible sharp turn around or new beginning. The problem with this is, the new beginning consists of major volatile long-term swings, see EURZAR, Weekly chart as an example. You may not have the cahunas to jump on but the tops are solid areas to hide stops. If it is knee jerk we soon see extreme responsive volume at the other end of the market, this means long-term balance and possibly continuation, very position traders nightmare. 3. Finally the amount volume would normally tell you distance the price could go, the short-term nature of markets is negating this idea very quickly as volume of trades increase in the market.
Thatās it. Good luck! It is a lot more than this to analyse correctly, the futures are a great help so best to start there, the platforms are too open to alteration so your view can be skewed, so find a source for real volume and then work with it.
An accomplished musician, Greenspan studied music at Juilliard and toured the U.S. with the Henry Jerome Orchestra playing tenor saxophone and clarinet. āI got into music because I used to listen to Benny Goodman and other dance bands on the radio,ā he told the āTodayā show in 2007.
āTo a young kid living in New York City, Goodman was my idol. Joining a dance band was also a great way to go on the road and see the country. So I turned pro ā¦ but soon found out that I wasnāt as good as some of the other players in my band. In fact, as a kid, I played with one of the greats, Stan Getz! So it was a good thing I got out of the music business and went back to school. Iām a better economist than I was a sax player.ā
I gave up looking at volume tick chart for spot forex on 5 min. The amount of screen time is killing. Iāll now take a turn and try out futureās volume. Another problem is I am using FX trade platform mobile. No tick volume data there
