EUR/USD
The euro stood at 1.3800-3850 range. I continue to hold a long position from 1.3800, and I consider the price move to 1.3870. I plan to close a position if there are large volumes in this area.
AUD/USD
The Australian gave an entry point into long positions, but volumes not allowed to go above the price in the region 0.9370-9380. So I closed position. I consider the range of price movement 0.9330-9380.
USD/CAD
Canadian showed 1.1032, gaining large amounts at the maximum. I do not rule on the news updates 1.1032, but generally consider going to the bottom of the range 1.0950-1.1000.
USD/CHF
Price highs, showing 0.8826. The situation is ambiguous, there is no large amounts that would determine the direction of prices. I see movement within the accumulation zone 0.8780-8815.
USD/JPY
I closed my position at 102.30 yen yesterday. Price again trying to get back into the range 101.50-102. I’ll go into a long position if larger volumes appear 101.70-101.90 area. Otherwise, the price can go below 101.17.
WTI
Price left the area 104.94 and turned to 103.15. I plan to open short positions with a stop at yesterday’s high 105 and goals at the lower boundary of this zone in the U.S. session near 104.20-50.
XAU/USD
Price stood in a narrow range all day. I see update 1307. I’ll open short positions in the appearance of large amounts of there with a stop at 1315 and 1290 targets in the area.
Good day!
I use indicator Volume Profile (clusterdelta.ru) and futures volumes of the program Volfix.
I imposed on the history of the profiles from the highs to the lows, and vice versa, considering the volume of the accumulation zone. I looked inside the volumes of candles H1 and above. I chose a template where the exact entry point, stop loss and profit. SL different in different situations. Most often I put the stoploss for the previous accumulation zone, the goal is the next storage area or to the formation of a new zone of accumulation more than the previous area. Large volume often used to confirm the movement. If a large volume at maximum, then MM sold, if at a minimum, the MM bought.
Some of my rules:
Wait for large volumes of updates to a minimum if the maximum
to buy or sell the full allocation
to trade in the direction of least resistance.
Generally there are a lot of questions from users, so I’m going to write articles about it (with examples and templates for specific transactions and analysis)
EUR/USD
Euro continues to consolidate in a narrow range 1.3800-3850. I hold a long position from 1.3800. I consider the range of price movement in the area 1.3810-3850 today.
AUD/USD
Australian went below, showing 0.9314. No entry points, as there is no volume. So while the price may go lower, or it will be in the range of 0.9320-9345.
USD/CAD
The currency pair is in a narrow range. There is a probability updates 1.1033, but generally I consider the continuing consolidation in the 1.1000-1.1030 area.
USD/JPY
The yen rebounded from the previous volumes in the accumulation zone Friday. Therefore, you will need to look for points of entry in short positions in return rates again in the area of 101.90-102, and while I consider consolidation in the 102.30-102.60.
USD/RUB
Ruble strengthened after the volumes in the region 36.00-36.20. I consider consolidate around 35.50-35.70. Strong accumulation zone was near 34.60-35.00.
EUR/USD
The euro fell to 1.3784. No large amounts. Therefore, the situation is uncertain. Price can go on as 1.3755 and 1.3830 show again. I’m waiting for the appearance of volume and then I’ll open positions.
GBP/USD
Pound is also in consolidation 1.6780-6820. No volumes. Medium-term objectives - 1.6875-7045. But I view pound’s update 1.6820, and price will return to 1.6770. Therefore, I hold a short position with a stop for a maximum of 1.6843 and 1.6720 purpose.
AUD/USD
Australian stood in the range 0.9320-9345 and went higher. I see growth in the region 0.9370-9395. I plan to open short positions with a stop 0.9430 and purpose 0.9300, when large volumes will appear there.
USD/CAD
The currency pair is in a narrow range. There is a probability updates 1.1033, but generally I consider the continuing consolidation in the 1.1000-1.1030 area.
USD/JPY
I will look for an entry point to short positions when the price will return to the area 101.90-102. While I consider the consolidation in the 102.30-102.60.
USD/RUB
Ruble strengthened after the volumes in the region 36.00-36.20. I consider consolidate around 35.55-35.75. Strong accumulation zone was near 34.60-35.00.
Today’s article focuses on how to interpret the volume futures after the news. The trend is formed when large volume goes the market. Most often, strong accumulation of large volumes place after release of important news, as well as news releases, when current value is very different from the previous value. I do not consider the specific values published news and speech at the meetings.
MM (market maker) - is a major dealer or the player who support liquidity and regulates the prices of a trading floor in agreement with the exchange. After the release of the news MM often have to provide liquidity to the market, so I will consider that these volume accumulations are the true. Because the number of bulls and bears is the highest on the highs and lows of the market, so MM forced to participate, providing liquidity all market participants. It proves that MM present at the extremums of the market. Therefore, the price goes in the opposite direction, when liquidity is fully provided to all participants, that is, the market is saturated and there are not willing market participants, which want to buy or sell at the disadvantageous prices. But there are situations when the price goes above / below the extremum, again showing large amounts. In this case, we can expect when the price will return to the previous level of accumulation of large volumes.
Therefore the main task - to open positions in the direction of movement of a market maker.
We examine the impact of news and volumes on price movement, for example chart of the futures E6 01.02.2014-03.05.2014. There are all large volumes (total volume at highlighted areas) and news. As you can see, a large volume clusters are concentrated after published news. Therefore, it proves once again that this volume is the key to work in the direction of MM.
List of significant news and speeches: ECB President Draghi Speaks, Fed Chair Yellen Speaks, ECB Press Conference, FOMC Statement, Unemployment Rate, Non-Farm Employment Change, Unemployment Claims, CB Consumer Confidence, Prelim GDP, Trade Balance, New Home Sales.
I propose algorithm of works with the volume after the news. First of all I define the last accumulation of large amounts and calculate its value. If it is much greater than the previous accumulation, it is likely that the price will go in the opposite direction. If the value is less than the previous accumulation, the movement will continue in the same direction as before the release of the latest news.
The next step - defining objectives. I define a target in time - before the next important news, and on volume - I close position on the formation volume, if it is greater than the on the level of opening positions. Of course do not forget about the risks. Most often stoploss exhibit for provocation on previous news, or in the previous formation of large volumes.
Source of article - Articles � Volume Trade International
All who read the previous article (Volumes after the news.) already have an idea how to interpret the futures volume after the news. So, I will not repeat and will write directly on the current subject.
As the this theme was interesting to our readers, I decided to review the key events in futures 6E before June 1. So first, I select important days and news which are worth paying attention:
Wed May 21: USD Fed Chair Yellen Speaks, USD FOMC Meeting Minutes;
Thu May 22: USD Unemployment Claims, USD Existing Home Sales;
Tue May 27: USD CB Consumer Confidence;
Thu May 29: Prelim GDP q/q, Unemployment Claims, Pending Home Sales m/m.
I’ll wait for the accumulation of volume after the news. And I will select the key points that will be at the maximum or minimum of the market at the time of accumulation of volumes.
Example: Today is May 19, I am guided by the correction or growth to key news on May 21. If the price will go up to this time and large volumes will be at the highs of the market, we should expect the price will go down, at least until the next news May 22.
Of course do not forget about numbers of volumes. It is necessary to know, as prices can update the level of previous large volumes or not. I did a graphical view of an exemplary price movement E6 before June 1. And I suppose but I do not say that, if the each accumulation of volumes after the news will be on extremes of the market, the movement of the futures will look like as shown in the figure. Red line - alternative scenario. Of course the accumulation of volumes may be located in any other way. So watch out for the amount of volumes, for their zones of accumulation and market extremums!
