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Hey, Newbie got some questions 12 replies

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Attachments: Hey...what about Volume?
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Hey...what about Volume?

Quoting thisara1
{quote} your share many chart 2hour thank explain
The price bars on my charts are 2 hrs...the volume profiles are daily. I do NOT trade the two hour chart I trade the daily chart. I set the price bars at a lower setting to see the intraday price action and WHERE (what price) the buying and selling occurs. So when the Daily candle is completed (at 17:00 NY) I evaluate the price action on that day and compare it with the delta volume.

What is most important is how price reacts to the Delta volume at each price level...

  1. If there is "heavy" selling, price should move lower...significantly
  2. If there is "light" selling price should move only slightly lower.
  3. If there is "heaving" or "light" selling and price RISES, or ranges, there is most likely some absorption going on.

The same is true for the buying side.

So to explain your chart...you are wondering if you should buy...and looking at price now, buying would've been profitable...For me this rise is price is simply a retrace back into the area where the heavy selling occurred. The buying that occurred today may be some short term selling profit taking or stop outs...but it (IMHO) is NOT an area where I would consider new long positions. But that's me, and my time horizon is 3-5 days to 3-8 weeks. I do not use FX to trade intraday...I think that's suicide with your money.

I am now looking for another leg down on this market...

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Do more of that which succeeds and less of that which does not - Dennis Gar
Quoting DonPato
{quote} It is Delta volume at every price point, plotted on the x axis.
So it's like a footprint chart but it shows Delta volume as horizontal histograms instead of numbers.
hello Don ....very nice thread ...keep it up ...just thread most of your thread ...i saw that you have an i pressure indicator for your futures trading which you say that the calculation is basically the delta as a percentage ..? a percentage of what if i may ask ?? is it a percentage of 1350 volume or maybe 533tick etc???
thanks in advance.
Quoting bettervolume
... a percentage of what if i may ask ?? is it a percentage of 1350 volume or maybe 533tick etc??? thanks in advance.
It is the percentage of the total volume of a constant volume or tick chart. The calculation is simple.
Pressure = (uptick-downtick)/(uptick+downtick)

This works quite well with constant volume or tick charts...not so much with time charts. This is because time "is relative" to volume.
Do more of that which succeeds and less of that which does not - Dennis Gar
Quoting pooh123
{quote} So it's like a footprint chart but it shows Delta volume as horizontal histograms instead of numbers.
Exactly!!
Do more of that which succeeds and less of that which does not - Dennis Gar
thanx don ....does it work with wti crude oil??
hello don ...i also see the colors on ur bars for tradestation ...what is the criteria for the different colors ...thanx in advance
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  • Edited at 10:02am Jun 18, 2019 8:46am | Edited at 10:02am
Quoting bettervolume
hello don ...i also see the colors on ur bars for tradestation ...what is the criteria for the different colors ...thanx in advance
The magenta represents selling pressure and the cyan represents buying pressure. When either of those drop below a certain level it indicates relative order flow balance. When it is super high it indicates order flow dominance. Again watching how price responds to these volume levels is key...it is NOT just another indicator. It is a tool to evaluate order flow/volume vs price reaction.
Do more of that which succeeds and less of that which does not - Dennis Gar
Tough trading in futures today...choppy price action and indecisiveness leading up to FOMC. Made the minimum goal for the week and I'm DONE!
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Do more of that which succeeds and less of that which does not - Dennis Gar
Triggered overnight on USD/CAD longs...there is still one position left pending. Note how price is currently RIGHT AT the area where buying overwhelmed the selling from last Thursday. There is currently some weak selling going on at this same level. I'll have to wait and see if this selling volume is sufficient to push price back down to test the lows seen here...that's where my pending long is waiting.
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Do more of that which succeeds and less of that which does not - Dennis Gar
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Looks like AUD/USD (at this point) is showing an "order flow" inversion (a sign of buying exhaustion) right in the area where major selling occurred two week ago. Still no selling yet, and today's selling seems weak...however, keep an eye out for major selling as we near the top of what could be a summer range.
Do more of that which succeeds and less of that which does not - Dennis Gar
Hey Don long time , i see your use volume profile mainly now. How have you been ?
Quoting zachmodus
Hey Don long time , i see your use volume profile mainly now. How have you been ?
Doing as well as I can. Trading has lately given way to higher priorities on the family front but staying at it.

I have been quite pleased with the delta volume profile indicator for cTrader. I am still taking notes on its use and researching an execution protocol. It is different than the futures tool I use but similar enough to get the job done and far more accurate than anything I've used in the past.

I hope you too are doing well and staying on top of your trading. It's been a challenging summer to be sure.
Do more of that which succeeds and less of that which does not - Dennis Gar
Are you referring to this one, I actually downloaded Ctrader I might buy this one and do some back testing
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Quoting zachmodus
Are you referring to this one, I actually downloaded Ctrader I might buy this one and do some back testing {image}
Yes I believe that is the correct one. You need to contact the proprietor and ask him to specifically include the function for Delta volume. It is a toggle switch in the settings. He was very helpful for me and allowed me to demo the indicator before I bought it. The nice thing is that after you buy it any and all further updates are included in the price.
Do more of that which succeeds and less of that which does not - Dennis Gar
Quoting DonPato
. . . However, this information does not exist in the forex market. BUT there is a way to use the tick volume data on the forex market in combination with price's reaction to that volume and come up with nearly the same thing. How about you? Do you use the available tick volume data in your trading? Why? or why not?
This information actually DOES exist! It is right before your eyes on every candle stick.

I have a nice little way of knowing the NET buy/sell volume for ANY period. Just give me the OHLC and volume and I will tell you the NET buy/sell volume for that period.
Quoting pipcenturion
{quote} This information actually DOES exist! It is right before your eyes on every candle stick. I have a nice little way of knowing the NET buy/sell volume for ANY period. Just give me the OHLC and volume and I will tell you the NET buy/sell volume for that period.
Congratulations...now use it to trade on the right hand edge. And while you're at it why not post a few of those trades with a good explanation of this concept. Again on the right hand edge. We look forward to seeing how you accomplish this.
Do more of that which succeeds and less of that which does not - Dennis Gar
Hey Don i have a question how do you identify order flow inversion ? This is something I'm still not familiar with. Thanks
Quoting zachmodus
Hey Don i have a question how do you identify order flow inversion ? This is something I'm still not familiar with. Thanks
I discussed it in detail here:. https://www.forexfactory.com/showthr...9#post12237599
Do more of that which succeeds and less of that which does not - Dennis Gar
Thank you, I really appreciate it
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