Hey...what about Volume? | Page 34 | Forex Factory

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Hey...what about Volume?

  • #661
  • Oct 17, 2019 10:10am Oct 17, 2019 10:10am
Quoting DonPato
{quote} It does my heart good to see you using the order flow chart and actually "seeing" the order flow in real time. I will be very interested to hear your review of this kind of charting and also how you think it helps (or doesn't help) your trading. Upon looking at the EUR/USD I do see that area where the selling had occurred and now that price has risen above, I would like to point out something I consider very important (IMHO). On the chart you posted you can see that, at that point in time there was a great deal of selling (as was to be expected...

Thanks DonPato. More screen time . Appreciate.
  • #662
  • Edited 6:24pm Oct 22, 2019 4:20pm | Edited 6:24pm
Ok - setup volume profile. Let’s give it a go.

I am short AUDUSD and long EURGBP. Wonder if I’ll be incorrect at my first attempt.

Assume we want to trade the bigger pairs, preferably majors given they will have the most reported volume.
  • #663
  • Oct 22, 2019 9:11pm Oct 22, 2019 9:11pm
Quoting Neogenesis
Ok - setup volume profile. Let’s give it a go. I am short AUDUSD and long EURGBP. Wonder if I’ll be incorrect at my first attempt. Assume we want to trade the bigger pairs, preferably majors given they will have the most reported volume.
Let's see a screenshot of your entry!!
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  • #664
  • Oct 23, 2019 4:07am Oct 23, 2019 4:07am
Ah - apologies, I am using Parallels for Mac and for some reason it crashes when I attempt to take screenshots!

Entry was around 23:00 GMT yesterday, I believe. Both positions are now in profit, but nothing major.
  • #665
  • Oct 23, 2019 10:29am Oct 23, 2019 10:29am
Quoting Neogenesis
Ah - apologies, I am using Parallels for Mac and for some reason it crashes when I attempt to take screenshots! Entry was around 23:00 GMT yesterday, I believe. Both positions are now in profit, but nothing major.
Ok...here is how I am "interpreting" the order flow.
Attached Image (click to enlarge)
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There is some selling coming into the market that is for sure and that selling is having its effect on price. However, I am seeing it as very minimal. And it is to be expected as we are currently at or near the last major top. So anyone who was long would naturally be wanting to preserve profits and move stops up or start taking profits.

The current order flow appears to be more buying supporting the low of the day. And just to complicate matters even more I fully expect those buyers to be "flushed" out, which would create a selling cascade to around the 0.6800 level. This is where buyers last overwhelmed sellers. I will be putting a lot of attention here. However, I don't see a "short" signal. For now I see a "pause" or consolidation that may take some deeper pockets to push through.
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  • #666
  • Oct 23, 2019 10:39am Oct 23, 2019 10:39am
Quoting DonPato
{quote} Ok...here is how I am "interpreting" the order flow. {image} There is some selling coming into the market that is for sure and that selling is having its effect on price. However, I am seeing it as very minimal. And it is to be expected as we are currently at or near the last major top. So anyone who was long would naturally be wanting to preserve profits and move stops up or start taking profits. The current order flow appears to be more buying supporting the low of the day. And just to complicate matters even more I fully expect those...
DonPato can you teach me how to analisis intarday this indicator using 2M chart...
please advise give me analysis tip
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  • #667
  • Oct 23, 2019 11:17am Oct 23, 2019 11:17am
Quoting thisara1
DonPato can you teach me how to analisis intarday this indicator using 2M chart... please advise give me analysis tip
As I have said on multiple occasions...I don't recommend doing this on the retail FX intraday. Once again...we are dealing with TICK volume here, not actual volume. The tools I am using are telling us where the transactions are occurring...it says NOTHING about how BIG those transactions are. There is not difference in a 1 lot tick or a 100 lot tick...a tick is simply a transaction being recorded. To further complicate the matter, what you are looking at is NOT the entire market (as you would see in futures or commodities). It is only the transactions that are coming across the liquidity provider for your broker. And whats more, it may only be what is occurring inside your broker's platform.

For this reason, making consistently profitable decisions on intraday tick volume, on a retail FX broker (IMHO) is insanely improbable. You may as well go to a casino and play blackjack. Your odds are better I think. This is why I use these charts on 24 hr days or longer time frames. Because at the end of the day you have a greater total to show what is more probable.

O see that you are generating the histograms on a 4 hr time frame. This is better than 2 min by far. So to begin with you are NOT trading the 2 min time frame you are trading the 4 hr...count each histogram as a single candle...ignore all the candles (2 min or other wise) that created the histogram and read the LEVELS of buying and selling.

Stop thinking of them as candlesticks or "price action" and think of them as you should (as everyone should). They are levels of buying and selling. They are levels where people are transacting...THEN look at how price responded to those transactions...
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  • #668
  • Oct 23, 2019 11:19am Oct 23, 2019 11:19am
Yep, can see the buys supporting the lows. I closed out an hour ago with small profits due to this. My logic was seeing a sort of double top form from the previous near term high, and some selling pressure; but I agree it does look like it's going to continue it's upward trajectory from here.

I have read Wyckoff's work as well as Anna Coulling's, and I believe I found an internet article done by yourself also. Alas, further study required before I can fully interpret this, for now my understanding is infantile.

I found Anna Coulling's book fascinating but tick volume was always too hard to interpret so I let go. Excited to explore the possibilities of this tool in conjunction with my other views (mostly contrarian, but volume should trump all imo).

I set all volume bars to display as either green or red as to not confuse myself, I hope I am not disadvantaging myself of valuable data in doing so.
  • #669
  • Oct 23, 2019 11:22am Oct 23, 2019 11:22am
Quoting DonPato
{quote} As I have said on multiple occasions...I don't recommend doing this on the retail FX intraday. Once again...we are dealing with TICK volume here, not actual volume. The tools I am using are telling us where the transactions are occurring...it says NOTHING about how BIG those transactions are. There is not difference in a 1 lot tick or a 100 lot tick...a tick is simply a transaction being recorded. To further complicate the matter, what you are looking at is NOT the entire market (as you would see in futures or commodities). It is only the...
ok thank brother
  • #670
  • Oct 23, 2019 11:39am Oct 23, 2019 11:39am
Appears to be more 'selling at the top' on EURGBP. Primed for a move down?
  • #671
  • Oct 23, 2019 11:47am Oct 23, 2019 11:47am
Quoting Neogenesis
... I believe I found an internet article done by yourself also. ..
I don't remember doing an internet article but would be very interested in reading it and seeing if my "alter ego" did it... I am certainly not the only person who uses this kind of analysis in their trading. I too am still learning new things every day.

Quoting Neogenesis
... Alas, further study required before I can fully interpret this, for now my understanding is infantile...
I always encourage everyone I speak with to make their own observations and then lets have a discussion (which as been the basis for this thread). I am no "guru" and really benefit from intelligent conversation with like minded people.

Quoting Neogenesis
...Excited to explore the possibilities of this tool in conjunction with my other views (mostly contrarian, but volume should trump all imo)...
I would humbly suggest that it is price REACTION to volume that makes this method so much more accurate. Volume in and of itself is just another boring and inaccurate data point. However, when you see price responding to buying by rising...then you know why...but if you see price responding to buying by falling...or going flat...you have another clue that all may not be what it seems.

Quoting Neogenesis
...I set all volume bars to display as either green or red as to not confuse myself, I hope I am not disadvantaging myself of valuable data in doing so.
I like the varying colors because it allow you to see that even though a "fat" histogram is there...if it is less than 30% or less of the overall (buying or selling) volume you can consider that "weak" order flow...at least that's how I interpret it.
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  • #672
  • Oct 23, 2019 11:53am Oct 23, 2019 11:53am
casino setup lol
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  • #673
  • Oct 23, 2019 12:01pm Oct 23, 2019 12:01pm
Your choice...use the casino or learn to read order flow...7 winning trades for over 2,000 pips since August...this is JUST ONE currency pair
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The charts you normally use...
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  • #674
  • Oct 23, 2019 12:09pm Oct 23, 2019 12:09pm
Quoting DonPato
Your choice...use the casino or learn to read order flow...7 winning trades for over 2,000 pips since August...this is JUST ONE currency pair {image} The charts you normally use... {image}
Just for the noobs understanding...

Are you talking about reading order flow with an aid of using a third-party system?

...or >>> https://forextradingstrategies4u.com...-flow-trading/
...or >>> https://www.forexfactory.com/showthr...3#post10213643
Since Frank Sinatra sings in his own way, my chart sing... I did it, my way
  • #675
  • Oct 23, 2019 12:11pm Oct 23, 2019 12:11pm
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  • #676
  • Oct 23, 2019 12:19pm Oct 23, 2019 12:19pm
Quoting v2vboni
Just for the noobs understanding... Are you talking about reading order flow with an aid of using a third-party system? ...or >>> https://forextradingstrategies4u.com...-flow-trading/ ...or >>> https://www.forexfactory.com/showthr...3#post10213643
I use my own methodology. Not one that I found online. However, the facts about order flow are the facts and I highly respect hanover's explanation. The tools I use are right there in the screen shots. It is 100% discretionary and as such...NEVER 100% correct. But GBP/USD has been good to me these last few months...however if you had read or followed my Gold trades over the summer you would've seen miserable performance.

As they say (in just about everything), practice makes perfect. I've been very transparent about my method here:

  1. look for signs of exhaustion in one direction
  2. wait for the absorption in this same direction (the dark liquid pools)
  3. trade in the opposite direction (same direction as the liquid pools)
  4. Take reasonable and repeatable profits...
  5. Watch/Wait for exhaustion in the other direction

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  • #677
  • Oct 23, 2019 12:27pm Oct 23, 2019 12:27pm
Nice AUDUSD trade Don. I am also on the same trade and almost entry on same point, you kept a second position for retest I see and you got filled. The current selling is weak, profit taking, but will likely continue to 0.6800 LvL, I intend to add there is I see absorption of the selling. I did move to Break-even, I see you didn't. Same logic, see it thru MT4 Tick and Delta indi.
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Thanks we are learning everyday to improve ourselves.
  • #678
  • Oct 23, 2019 12:44pm Oct 23, 2019 12:44pm
Quoting danasa
Nice AUDUSD trade Don. I am also on the same trade and almost entry on same point, you kept a second position for retest I see and you got filled. The current selling is weak, profit taking, but will likely continue to 0.6800 LvL, I intend to add there is I see absorption of the selling. I did move to Break-even, I see you didn't. Same logic, see it thru MT4 Tick and Delta indi. {image} Thanks we are learning everyday to improve ourselves.
Well done Dan!! I see a distinct improvement in how you are trading and the logic you are using to find entries and exits...congratulations!!
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  • #679
  • Oct 23, 2019 12:59pm Oct 23, 2019 12:59pm
Hey...what about Volume?

Yeah, what about it? Spot FX isn't traded on an exchange (maybe LMAX is changing that), so there is no reliable volume information. Possibly one could use volume data from currency futures, but that is a different market than spot. The volume you get from retail brokers like Oanda is just retail customer data, so it's useless.
  • #680
  • Oct 23, 2019 1:01pm Oct 23, 2019 1:01pm
Quoting DonPato
{quote} Well done Dan!! I see a distinct improvement in how you are trading and the logic you are using to find entries and exits...congratulations!!
Nice pat from the Don, much cherished. It would be a crime not to improve from your open and sincere lectures. The concept of absorption is now my bread and butter. By the way, nice dance on GBPUSD.
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