If you check your tick volume on a pinbar, you can tell how effective it’s likely to be. If the volume is lite, be carefull, if volume is high you should be okay. Cheers,
Mike
nws, i am not sure re the correct terminolgy - i always took print to mean whatever the price was at that point with no respect to t/f. all our discussions (my response) re the m15 set up were going on at 12 45 ish so H1 def not closed.
Good point though re if H1 PB closes below do you enter even if it tested the correction zone and was close to changing bias from short to long. To take what he has said to date (and what i recall) then yes an entry there is fine. But surely if the close was very close to the zone it would be a bit of a suspect entry point. I would prefer some space between entry point and zone so maybe another LH/LL in this example for my comfort.
NU needs to push through this level here @860 which i mentioned earlier.
interesting point - makes sense, i have never used tick charts. david mentioned using them for OF, i will have a look.
That is the basics of vsa. Just use the standard volume indicator that comes with mt4. Your looking for higher then average volume or lower then average volume to confirm if it’s a strong signal pinbar or not. Best of luck,
Mike
David discussed this before and he stated the pro money is traded on the inter bank market and doesn’t show up on mt4 volume indicator.
I certainly don’t want to argue with Dave as he has forgoten more then I know, but I have traded volume for over a year and it is obvious when it’s high, the upthrust and springs are far more likely to be effective. The higher the timeframe, the stronger the signal. You can back test this as volume doesn’t repaint. This is my opinion, treat it as you will. Cheers,
Mike
Yes thats right but you would want to see the EMA act as a support or resistance before entering the trade.
Sorry I mean SMA
Quick question for anyone in the know:
It appears that option volume isn’t always reported. Take for instance the options calendar posted by David on Tuesday, which reports 500M at 1.2400,
…compared to today’s options calendar which makes no mention of volume.
Is it safe to assume that the option volume is still 500M? And should i be keeping a note of large volume options as they appear, such as the 400M one reported to expire on Monday?
And one more question which may be trivial but i can’t find a definitive answer to: Are all options traded as a call option of the base currency and a put of the quote currency, e.g. call EUR and put USD for EURUSD? If, by Monday, the EURUSD trades below the abovementioned 1.2050 option, could we realistically expect price to be pushed above it before expiry? Or would new protective offers act as resistance to further upward moves (presumably belonging to whoever pays out the premium)? I ask this as there is never any mention of whether an option is a call or put option in the IFR Markets news. If it were a Middle Eastern name (say) that owned the option and it were a call option, there may be little resistance to upward movement (crossing up above the strike price), whereas if the same name owned a put option, we may see significant offers pressing price down.
Thanks for your help,
Lyall
Hi Lyall,
David uses an array of sources, including contacts on various desks. He is also paying a fair wack of money (£c15k i think) per annum for some of the sources, where as you are, i believe, getting yours free from oanda. So it is expected his data is more comprehensive than your sources.
on the paid IFR data sometimes it mentions what it is eg “1wk 78.50 USD call/JPY put option interest seen” (taken from ifr site), but its always been re usd/jpy (from my huge experience of 2 days looking at it). i have only seen EUR puts mentioned in respect to skew (volatility). a guess is: that it doesnt matter - either way there maybe a battle for the larger notional options.
one for david.
david also mentions that it was a battle at expiry over the premium but i thought premium was paid up front, another indication of my ltd knowledge.
Anyone else in E/U still?
Seems to be floundering a bit which isn’t entirely unexpected but wondering what exit strategy people are looking to use or whether the plan is to just let it run overnight?
I thought it was a battle over the [I]payout[/I] of the option, and the premium is paid upfront. But I’m just like you - of limited knowledge 
Agreed it seems to be bouncing along the 50 MA? I am out as I had to go out and consequently set a TP which was hit. PA has just bounced off the 38% of the down move at 15.00hrs so you might be lucky and get a continuation but personally I glad I’m out and am off for a bike ride now and then a good cigar. Boy its hot here in London!
It is the payout yes… if I typed premium then it was a mistake.
Yeah, looks like I’m going to get stopped out, moved to BE so not going to be yet another loss but still ******ng depressing. (I should point out that most of the run of losses are not from trying to trade this method).
What was your TP 1:1 RRR?
Edit:
Yep, there she went. Brilliant. I guess at least it’s an improvement. Who knows one day I might actually win one 
Pheeww were do I start lol
I don’t want to go into the whole subject of the workings of options and how to trade options which is really what I would need to do in order to explain a lot of your question. There is a lot to options (delta, gamma, volatility) and that would be an entirely different thread/subject/thread that no doubt would have another 106 pages.
Ive tried to keep the whole option barrier thing on the low down and make it as basic as possible so people wouldnt start asking how options work ect ect ect lol.
IFR normally don’t report what it is on the calendar, but often pretty much tell you on their reports published through the day what it is, by basically saying something in their analysis… for example… here was a real sample of today’s…
EUR/USD 1.2000 and EUR/JPY 94.00 KOs tipped, bids ahead, stops below. Ko’s are knock on’s, Knock off’s (option activation price/deativation), since price was trading around 1.2060-70 when this was published, the the 1.2000 would have been a knock on
Positive gamma may not fade even with EUR/USD 1.2000 break. (The spot movement is increasingly driven by the activity in the options market. When the market is long gamma (positive), market makers as a whole will be buying spot when the exchange rate falls and selling spot when it rises. When the market is short gamma, however, the spot rate can be prone to wide swings as players are either continually selling when prices fall, or buying when prices rise.
A: When market makers are long gamma, spot generally trades in a tighter range.
B: When market makers are short gamma, spot can be prone to wide swings.
EUR/USD vanilla 1.2000, 1.2050 and 1.2100 expires too. (It doesn’t matter if its a put/call… it will be defended and attacked by both sides of the coin with bids and offers. Just trade the first test as I have indicated)
USD/JPY 77.75, AUD/JPY 78.95 and AUD/USD 1.0200 strikes also go off.
GBP/USD 1.5425 vanilla expirations as well.
Finally I finished the thread… Lol… More lurking ahead… Oh by the way thanks David for sharing this type of trading… It changed my trading style completely, of course in a positive way… More studying and information from the Pro… Thank you so much again…
Hi jabutu i just want to ask the link of this in oanda. Thanks.
Dave: First touch play on option is it always on long side as for today for example GU option with 1.55 strike price as we don’t know put or call so do we play the bounce always on the long side?
Thanks
Jeff
No you play the bounce from where price is coming from after 07:00 UK time.
So if price is heading up to the level and hits, then you will be trading the offers. If price is coming down to the barrier and hits, then you will be trading the bids.
There are 2 reasons for this. One the original bids/offers will be located in that region, and 2, fresh bids/offers will be set for the new session Europe/London.