How To Read Signals From A Chart

These are called stop loss clusters.
The blue lines on the chart . The thicker they are the more stop losses.

Oleg, can you tell me how to trade these.

These are suppose to be a combo of stop losses from the following:

INSTA, SAXO, OANDA,FIBO GROUP,IGG, DUKAS,MYFXBOOK..

Here it is with the order book of the same.

Thank you man!

Beautiful.Thank you man.

Your profit = somebody's loss.

This indicator is used to:

1. Determine profit target and set Take Profit.
2. Set Stop Loss properly.
3. To a lesser extent, define a trade direction.

Tnx but I still have to study this bit more to understand.

Traders often begin their path in the financial market with experiments within the Metatrader program. Sooner or later, many of them come to the conclusion about the importance of volume indicators. This is a valid argument since the analysis of volumes allows you to use the law of supply and demand and trade in harmony with the true mood (sentiment) of the market.

Then traders ask themselves whether it is possible to use tick volume. Indeed, in Metatrader, a broker provides only a tick volume data. While real volumes are broadcast by the official Exchanges like CME, and sometimes you need to pay for such data.

So - tick volumes CAN be used. Although they differ from the real volumes from the exchange, tick volumes show the activity of players.

Take for example the forex market USDCAD.

 

1. This is an example of EVRT. Look, the volumes are high, and the progress of the bulls is small. Those who can read Japanese candles will call this pattern a reversal. A long top-shadow confirms the weakness of EVRT, and shows the presence of massive SELL-limit orders (hidden weakness). Starting from this level, we must assume the beginning of the distribution phase in this market.
   
2. SLKT. False breakdown of the previous local maximum of the day. This indicator (3) shows stop-loss levels. They were knocked out. A large surge (4) in volume indicates a high activity inside this candle. But if this activity was genuine strength, why did the next two candles close lower? This is a bearish indication.
   
3. Here we have an attempt to grow candles in the SLKT area. But the volumes are low. Most likely this is a weak demand ( ND. )
   

You see, tick volumes are capable of telling a story. And the summary is this - bears so far control the level of 1,317. To overcome this resistance and continue the up-trend started in the candle (6), the market needs a Shakeout. Very likely, with a false breakdown SLKB of the stop loss level (7). So far - a little more negative than expectations of rapid growth.

How to combine the Stop Loss indicator with the principles of Chart Reading

Consider the example of AUDJPY, M5

1) At the beginning of the European session in this market, the number of buyers in profit was too high. The market was not created in order to provide opportunities for quick easy money, so at least a downward pullback should be expected.

2) The stop loss indicator also speaks in favor of the pullback idea. It shows the clusters of protective orders of sellers.

Given the two above factors, level (2) can be used as a guideline to start the rollback. Where can I get a signal to enter the deal?

An analysis of Supply and Demand will help to find the right moment to open the short.

3) There is a change in market sentiment. After an exhausting wave upwards on drying volumes, a bearish candle appears with an increase in volume. This is a sign that sales pressure has begun.

Get in shorts and move your protective stop lower and lower (4), increasing your success intraday. At some point you will be knocked out, however you will get a profit. The profit is most likely not to be big, but such opportunities open every day.

It is the market (price)that makes the candle pattern and non the oppost

Why does #USDCAD have a bullish outlook?

1) The indicator shows - Sellers were in the black, what happened afterward? When a lot of people have a profit from a market, it is not preferable for the market by nature. A continuation decline would mean more benefits for sellers. Therefore, growth is more likely.

2) Here is growth. As often happens, small profits for traders (in this case, for sellers) turned out to be big losses for them.

3) Now, buyers already have a profit. But the market does not allow them to earn, pulling back lower after the profit of buyers becomes too large.

4) This growth has attracted new buyers. If the market is really strong (located on the eve of a new price increase), then it should be knocked out of the position of buyers before going up.

5) Like that. This manipulative down-bar (trap) has reduced the number of buyers in profit. It also confirmed expectations on growth.

6) A similar action has already happened here. This happens on the eve of any growth of any market in 90% of cases. Check it out.

#NIO stock is very popular nowadays. Price surged up quickly amid the news about Intel and NIO collaboration.

I didn't follow this stock, I open its chart when see headlines.(3)
This fundamental news become unexpected for others. But do you believe it was unexpected for everybody?

1) Look. This is EVRB. Someone (insiders) absorbed stock after falling from 3.0 level.
2) And here is No-Supply. Someone (insiders) was cleared the market from supply. Selling pressure is exhausted as can be seen by low volumes. Stock prepared for Good News.

That is why how you can get "secret information" by reading the chart.

Hi Oleg,

Hope this finds you well?

May I say this is an awesome thread mate, thanks so much for starting it, along with your posts here & in all the other threads you have been contributing to, I'm slowly reading through & absorbing your teachings on the markets which has been a real eye opener. Look forward to learning more from your approach

Many Thanks,
J

Where I can find volume Indicator?
I tried couples but didnt find the one OP using.

What is OP ? What is your terminal? If you use MT4 - it provides tick volume. I made this Tutorial with charts from Tradingview service.

Thank you for positive feedback. I appreciate this

I always say - the market is made in order to produce as many losses for people as possible. Bernard Baruch said this to me. )))

If you start thinking from this basic truth, it will be easier for you to understand the reasons for certain movements in the market. Take an example from the EURUSD market, today's trading, 15m TF.



1) On a fresh background, we have a downward trend. What happens during a down trend?
2) Sellers are increasing profits.
3) Move your SLs down.
But the market is not beneficial for people to have a lot of profit. Therefore, what usually happens in such cases?
4) The market hits the stop loss of buyers and ...
5) ... goes up to beat the stop loss of sellers.
6) bang bang! If you defended your shorts by BUY-stops at this level, congratulations. You were knocked out of position. Pay attention to activity (trading volume). We have a surge. But if this surge reflects true strength, why then did the decline begin after 30 minutes? Because SLKT is not a sign of strength, but a sign of hidden weakness.

Well.. If the downtrend is really about to resume, then the market is ready. The number of sellers in profit was significantly reduced in order to prevent their enrichment.

In the previous post about BTCUSD I wrote:
---
The current situation is more bearish. But it can change quickly due to the fact that the market is sluggish and is moving sideways. Let's see if sellers can push the price through the long red support line. They now have every chance for this.
---

What we have now?



1) Attempt of bears to push the price through the long red support line. Volume = the Quantity of Effort. This is Supply pressure.
2) ND wave. Lack of buyers around 9k
3) Sellers resumed pressure. Another portion of Supply after ND.
4) Oh! This is EVRB around 8700. Small bearish progress (Price Decline) amid big Effort (Volume). Support arrived where it should be expected.

Why 8700 is the expected level of support? Look on background. We have spike of volume around 8700 (5). It was powerful bullish effort to breakout 8700 and reach 9800. It was a clear indication of bullish control over 8700 level. And - no surprised - we got EVRB signs of support (4) recently.

So, what a conclusion? Background matters.

What is next? If bears want to resume downward pace, the manipulative movement SLKT above 9k would be the rational scenario.

Distribution example on the USDJPY market
This is a small-scale distribution on TF 1h.

1. Buyers receive an increased profit from rising prices. Everyone wants to be buyers. However…
2. Look at the dynamics of prices and the relationship to volumes. Growth slows, but volume remains high. EVRT. This means the resistance (by professional Limit sell orders).
3. SB. Supply Bar after a bar of indecision. Selling pressure confirms the weakness at 109.40.
4. After this elegant SLKB, the market receives a bullish momentum.
5. However, look at activity on growth after SLKB. This is no demand. The Chart says it is too expensive to buy.
6. However, inexperienced traders enter the long. Perhaps they use the signals of their lagging indicators.
7. The trap for buyers slams. The market drops sharply at high volume. This is SB, as well as a bearish change in the character of market behavior.
8. Wave ND.
9. Wave S.
10. Buyers (they were recently in the majority) close at a loss.

Actually, you can play a short raise. In favor of this idea you have minor bullish arguments:

11) Bounce from the downward channel line
12) Activation of stop-loss buyers at a level that shows a blue thin horizontal line.

But buying is a high-risk idea as there is a zone of weakness on top. Assess your chances.
Hope this review has been helpful, thanks for reading.

SLKT after breakdown

Video explanation from BTCUSD and EURUSD markets

Thanks for all the selfless service, I'm enjoying the tutorial. Please what shakeout?

Thank you for the positive feedback. Look how people use the knowledge from the Tutorial.



Regarding Shakeout... This is an Artificial Panic Move. Down-bar with Extra-high volume with closing around middle. In majority of cases, Shakeouts designed in order to kick off retail buyers from their long positions before upmove. Thus, professionals grab positions of retail buyers and make further profits.