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Key level price interaction & correlation trading 17 replies

Volume on Price Level indicator for MT4? 8 replies

Correlation of price and volume 1 reply

Price by volume 16 replies

Volume Price Level Trading

Hi Tom, in my view, the first arrow was not a good indicator to short. Previous 3 candle prices was up, volume up, a bias to long entry. But the second entry was good because there was a price down from determinator candle to the next candle with volume up, a bias to short entry.

I hope we can get another opinion, especially from Spud.


Quoting tombombadill
I first entered short while the candle was still developing (ignoring Spudfyre's instructions - won't do it again) @1.3460 and got stopped out for a 15 pips loss. I entered again at the end of the candle where I was stopped and took a 15 pips profit that could have been much more ( I had to leave the PC therefore I set the TP to 15 pips)
Regards to all
Pursue the best and share to others!
Hi Spud


Can you please give us an example of Transition Trading? I am a little confused now. When we find a price cycle and price retraces from a top, volume will decrease while price moves lower. That shows no interest in lower prices. But when looking at it from the Price cycle point of view we should keep the trade although it show less interest in lower prices.

Thanks for your help
A Word About Mutiple Time Frames and VPLT

The VPLT description in this thread refers to a single time frame. For sake of less confusion, I'm not going to refer to multiple time frames (MTF), except for this one time in this thread.

Though MTF can be used, the strategy has to accomodate that the lower time frames create the longer time frames. VPLT is a here and now trading - trade what we know. Within building a M30 or H1 trend, for example, there will be oscillations and these oscillations will kill an M15 VPLT trade if refering to a M30 or H1 trend forecast.

Now, those who know me from MTF Stochastics know I love MTF. MTF VPLT is a total different kettle of fish for the very reason you must take into account the shorter term oscillations that build a longer term time frame. Like MTF Stochastics the better trades occur when the MTF's line up and the smaller time frames feed/lead the larger time frames. The rest of course is all details.

In terms of looking at M30 VPLT not agreeing to M15 VPLT, that could be misleading. I'd rather look at M15 VPLT leading M30 and M30 following the M15 moves. So, for simplicity sake, you would see growing price levels in an M15 long followed by M30 price levels growing in a long direction to confirm a long trend. Keep in mind that is a pretty simple approach, you would need to accomodate the M15 (and or M5) oscillations with larger stops, looking at M30 (or H1) to follow the long moves.

The question is, is MTF worth the added time and trouble? Well, if you like trading long trends, than MTF is definitely a good direction to go in. However, if you are looking for action to stay awake at night and build a portfolio from micro pips to $1 a pip to $2 a pip and so on....then I'd stick to M15 VPLT.
Quoting Spudfyre
A Word About Mutiple Time Frames and VPLT

The VPLT description in this thread refers to a single time frame. For sake of less confusion, I'm not going to refer to multiple time frames (MTF), except for this one time in this thread..
Thanks Spudfyre.

Regards

Waez
Don't you love the devil in the details?
The real stand out indication is between the 2 entry arrows, it is that volume down/price up candle.

I'd argue a bit that the volme peak is actually on volume bar to the right of the first arrow. Just looking at your chart, to me that volume bar seems higher? Then the price level is actually 5 pips higher and the pull away down is far easier to see at the second arrow.

However, you can still work off the info that you have presented to determine the same thing.
Where you get the short bias is where the volume peak falls/price rises away from our price level...so market interest is less on the long.
One price candle over where the second arrow is, still a short bias as volume increases/price falls down below the price level to close.
The next price candle is another confirmation of the price level and still keeps the short bias.
So basically from the climb to the first arrow, there has been a short bias all along.

Ask yourself then, on the candle after the second arrow where price is up and volume down...what happens if volume goes up?
We'd have to assume price will fall.
Volume down?
I'd look for a close in price slighty higher than our price level or last candle.

Overall, risk/rewards on the short are pretty good. Start a 10 SL and 15 TP here as an entry. Keep the TP open and follow down with the SL as the trade develops.



Quoting kawangkoan
Hi Tom, in my view, the first arrow was not a good indicator to short. Previous 3 candle prices was up, volume up, a bias to long entry. But the second entry was good because there was a price down from determinator candle to the next candle with volume up, a bias to short entry.

I hope we can get another opinion, especially from Spud.
Thank you for highly valuable comment Spudfyre and also thank you kawangoan for your comment.
Quoting Spudfyre
Don't you love the devil in the details?
The real stand out indication is between the 2 entry arrows, it is that volume down/price up candle.

I'd argue a bit that the volme peak is actually on volume bar to the right of the first arrow. Just looking at your chart, to me that volume bar seems higher? Then the price level is actually 5 pips higher and the pull away down is far easier to see at the second arrow.

However, you can still work off the info that you have presented to determine the same thing.
Where you get the short bias is where...
Hi Spud, I've been reading and practicing your method a bit. Thanks for the information. It was confusing to me at first as a few others mentioned it was for them, but as I kept reading your posts and examples, I thinks some light managed to creep its way into my dark head.

Anyway I've just been trying to stick to the basics of your logic. Establish good price levels using your volume technique and then begin some rational interpretation based on the interplay of price/volume with these levels.

I had two good trades so far for +27 pips. And it really took me only an hour or so for both together.

I'll post my second trade which turned out to be a scalp for 7 pips. This is on the EU, just a bit earlier.

My reasoning for entry was that volume kept spiking every time it hit 3185 moving down. I already had this level picked out based on earlier price action/volume movement. So on the 1st and 2nd candles after the last vertical dotted line, you see a bullish two bar where volume spikes as price moves down, then spikes a bit higher as it moves away from the level. So, initial volume reaction at the level, followed by a higher level of interest in the bullish candle.

Then on the next candle there is a little bear as price tries to move back down toward 3185, and volume drops.

So I think ok there is a lot of interest in this level, and the interest seems to be moving up and away from it rather than down through it. Then there is another bull candle shortly after with another increase in volume. This is where I make my long entry at 3192.

Looking at the charts initially, I think I'm good to 3225. Then there is a big bar up to 3205 on smaller volume. I'm thinking 3205 hmm, it ends in 5. So of course I look back at the recent price/volume history and noticed that I just basically missed the level, so as price fell away from it a bit, I took the 7 pips. I figured there was more to gain in taking the small profit and collecting more information about how price/volume was moving between the levels of my adjusted chart. Also this is just Asia and the night is still young.

That was pretty much it. Sorry it took so long to explain a 7 point scalp.. But I hope I have some of the logic down correctly. I like this system since it at least attempts to get at the content of the picture rather than just the form of it.. Thanks again. -Steve
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"Make everything as simple as possible, but no simpler."-Albert Einstein
I was reading Spud's post #420 where he introduced MACD for the first time, and checking the charts for the last few days I noticed this drop from 1.3405 to 1.3225....
I think, if used properly MACD can be of great help to VPLT.
What do you think guys and girls?
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Sounds like you have VPLT spot on.

Quoting stevefx
Hi Spud, I've been reading and practicing your method a bit. Thanks for the information. It was confusing to me at first as a few others mentioned it was for them, but as I kept reading your posts and examples, I thinks some light managed to creep its way into my dark head.

Anyway I've just been trying to stick to the basics of your logic. Establish good price levels using your volume technique and then begin some rational interpretation based on the interplay of price/volume with these levels.

I had two good trades so far for +27 pips....
I managed to get into a 10 pips trade today shown on the chart which took place on the 6th candle; this was my interpretation on price/volume:

Candles 1 and 2 set the price level @ 1.3230 and this was confirmed by the lack of interest in price leaving that level since both candle 3 and 4 showed decreasing volumes.
Candle 5 stared to move price down and volume was low; volume increased as price retraced showing exhaustion of the down movement confirming interest in 1.3230 and up moves. I set my limit order at 1.3230 at the beginning of candle 6, price retraced a little, just enough to hit my order and moved up quickly. I moved my S/L @ 1.3240 an was taken out for a 10 pips gain.
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Quoting tombombadill
I managed to get into a 10 pips trade today shown on the chart which took place on the 6th candle; this was my interpretation on price/volume:

Candles 1 and 2 set the price level @ 1.3230 and this was confirmed by the lack of interest in price leaving that level since both candle 3 and 4 showed decreasing volumes.
Candle 5 stared to move price down and volume was low; volume increased as price retraced showing exhaustion of the down movement confirming interest in 1.3230 and up moves. I set my limit order at 1.3230 at the beginning of candle...
Great explanation Tombombadill, thanks.

Waez
Hi, I just took this quick scalp.

1. Gives PL 1.3270
2. Confirms th PL.
3. Down on low volume ends up confirming buy bias.
4. Entry at the start of the candle, stopped out +10 pips.




Regards

Waez

Quoting Waez
Hi, I just took this quick scalp.

1. Gives PL 1.3270
2. Confirms th PL.
3. Down on low volume ends up confirming buy bias.
4. Entry at the start of the candle, stopped out +10 pips.

Waez
GŽday, another lucky trade today entry 1.3055, tp@1.3045 and tp@1.30749, +20 pips.

Regards

Waez

What is going on here?

Regards

Waez

Quoting Waez
What is going on here?

Is that a "mini price cycle" ? How about the information from OBV?
Pursue the best and share to others!
Quoting Waez
What is going on here?

Regards

Waez
Why are you trading on M5?
@Kawangkoan and dkoleary- I was puzzled over the pricemovement and went down to M5 to try to figure out what went on "behind the scene", and when money from buyers and sellers came in to play in order to be persuade to take a trade in the one or another direction. OBV I didŽnt check, it maybe could give a clue. I know Spudfyre advocates M15 so I wonŽt be posting charts from other TF again. Sorry

Regards

Waez
Slowly getting there, winning trade +15pips

Candles 1 and 2 show clearly no interest in higher PL:s.
3 gets pushed down with higher volume so I placed a sell limit @1.3120 which got triggered during 4. SL@1.3130, and TP@1.31052.



Regards

Waez
Quoting Waez
Slowly getting there, winning trade +15pips

Candles 1 and 2 show clearly no interest in higher PL:s.
3 gets pushed down with higher volume so I placed a sell limit @1.3120 which got triggered during 4. SL@1.3130, and TP@1.31052.


Waez
haha i was about to trade that! - stupid me for being too risk adverse
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