Hey...what about Volume? | Page 38 | Forex Factory

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Hey...what about Volume?

  • #741
  • Nov 22, 2019 2:38pm Nov 22, 2019 2:38pm
Quoting Darryl
Greetings Don, I've been keeping up with your thread every day. Have you checked out this volume indicator? Looks interesting. It seems to coincide with Climax Absorption and Exhaustion. {file} {file}
Hi Traders

Just a quick question regarding the Volume Delta indicator that Darryl uploaded for MT4.

Attached Image


Does anyone know what the absolute value of the indicator represents? and how this corresponds to the tick volume for the day? Example, today, delta volume is showing downticks of 38.4. What does this value in itself mean and how does it compare to the tick volume of 116198? Surely it cannot be that out of 116198 ticks "selling volume" exceeded "buying volume" by only 38 ticks?

Thanks for your assistance.
  • #742
  • Nov 22, 2019 2:45pm Nov 22, 2019 2:45pm
Quoting Alienonweed
{quote} Hi Traders Just a quick question regarding the Volume Delta indicator that Darryl uploaded for MT4. {image} Does anyone know what the absolute value of the indicator represents? and how this corresponds to the tick volume for the day? Example, today, delta volume is showing downticks of 38.4. What does this value in itself mean and how does it compare to the tick volume of 116198? Surely it cannot be that out of 116198 ticks "selling volume" exceeded "buying volume" by only 38 ticks? Thanks for your assistance.
I really do not know how the indicator is calculated. I have not seen the source code and probably couldn't tell even if I had. I agree with you that number seems incongruent. But I can tell you that when I use delta in this manner I look at the relative height of the histogram compared to the other readings and not necessarily the calculated number. Hope this helps.
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  • #743
  • Nov 22, 2019 2:49pm Nov 22, 2019 2:49pm
Hi DonPato

With regards to the Eur/Usd chart I posted in the previous post, I would like to clarify my understanding. So on this latest upward move, price reached an important resistance area, which I was looking to short. I clearly see the climax bar and volume, confirmed by volume delta. I can also clearly see the exhaustion, with volume dropping off in the last 2 bullish bars and volume delta also showing lower values. The problem I had was with the absorption phase. I can see absorption by the upward wicks in the candles. However, I was not getting the absorption signal from the volume (volume did not increase). Was this a case of possibly the absorption occurring over 2 bars? Or was it more visible using the volume profile charts?

Thanks for your feedback.
  • #744
  • Edited 3:19pm Nov 22, 2019 3:02pm | Edited 3:19pm
Quoting Alienonweed
..l was not getting the absorption signal from the volume (volume did not increase). Was this a case of possibly the absorption occurring over 2 bars? Or was it more visible using the volume profile charts? Thanks for your feedback.
The absorption phase was "buried" inside the daily candle at the very top as you suspected. It is best seen on the hourly chart. Another clue to this absorption is the fact that the lack of volume on this daily candle after breaking to new highs above the small range suggested that buyers volume (who pushed price up there) were easily absorbed and bailed out quickly causing the price to fall to the lower end of the range in the same day.

Edit:. After looking more closely at the hourly chart you can see clearly all three phases (climax, exhaustion, and absorption) on the run up to that top.
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  • #745
  • Nov 22, 2019 4:01pm Nov 22, 2019 4:01pm
Quoting DonPato
{quote} The absorption phase was "buried" inside the daily candle at the very top as you suspected. It is best seen on the hourly chart. Another clue to this absorption is the fact that the lack of volume on this daily candle after breaking to new highs above the small range suggested that buyers volume (who pushed price up there) were easily absorbed and bailed out quickly causing the price to fall to the lower end of the range in the same day. Edit:. After looking more closely at the hourly chart you can see clearly all three phases (climax, exhaustion,...
Excellentè...
A trade's ability to check across different tfs to discover hidden strength and weakness of price movements is one of distinction in trading skills.

...great work Donpato.

Wzt
"Greed takes away the life of its owners. "
  • #746
  • Nov 22, 2019 4:04pm Nov 22, 2019 4:04pm
Quoting Wzt
. ...great work Donpato.
Thank you!!
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  • #747
  • Dec 27, 2019 10:39am Dec 27, 2019 10:39am
Again I bring up the subject of "hedging" for those interested. Using this one simple rule: "Engage at the edges."

This kind of trade is especially effective when a range is forming and we can't tell when, if, or which way it will break...in fact no one really "knows". So I engage at the edges as soon as I see the order flow begin to exhaust. I was long from the bottom and now just entered short from the top, as well has having a 2nd position waiting to be filled. Now...no matter which way the range breaks I will have a profitable trade. And once all the drama plays out I will have a trade that looks like I was a "genius"...but not really...I just hedged and waited to see which side will win. If the longs win, the short position will stop out with a small loss, which is more than covered by the two longs. If the shorts win, then the opposite will happen. Now just side back and watch.
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  • #748
  • Dec 27, 2019 2:56pm Dec 27, 2019 2:56pm
@DonPato

Are you still trading spot forex using volume?
  • #749
  • Edited 3:52pm Dec 27, 2019 3:20pm | Edited 3:52pm
Quoting Merka
@DonPato Are you still trading spot forex using volume?
Yes...as part of an overall plan. I use this market to render a better return on savings. Did you have a specific question regarding trading the FX?
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  • #750
  • Dec 27, 2019 3:58pm Dec 27, 2019 3:58pm
Quoting DonPato
{quote} Yes...as part of an overall plan. I use this market to render a better return on savings. Did you have a specific question regarding trading the FX?
I come accross recently this thread https://www.forexfactory.com/showthread.php?t=969212
and I wanted to dig a bit into volume an came here to your thread (Still reading initials pages).

I know volume is good things to have and I also know all the limitations about spot forex, MT4/MT5 tick volume etc...
Was wondering, did you finally managed, despite all these limitations in spot forex, to use proficiently the tick volume available to us (small retail traders)?
  • #751
  • Dec 27, 2019 4:12pm Dec 27, 2019 4:12pm
Quoting Merka
... Was wondering, did you finally managed, despite all these limitations in spot forex, to use proficiently the tick volume available to us (small retail traders)?
The short answer is an enthusiastic YES!! If you're reading this thread I encourage you to finish it and you will see my own journey using volume (yes, tick volume) and I think you will not be disappointed. In addition I have started two other threads for using price action and one specifically that talks about order flow which is the campanion of volume. A quick query of my username will bring up all these threads
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  • #752
  • Dec 27, 2019 4:17pm Dec 27, 2019 4:17pm
Quoting DonPato
{quote} The short answer is an enthusiastic YES!! If you're reading this thread I encourage you to finish it and you will see my own journey using volume (yes, tick volume) and I think you will not be disappointed. In addition I have started two other threads for using price action and one specifically that talks about order flow which is the campanion of volume. A quick query of my username will bring up all these threads
That's are some encouraging news. Thanks
I use supply&demand and think volume will be a great addition to better trade forex or in general any other instrument.
Cheers
  • #753
  • Dec 31, 2019 10:56am Dec 31, 2019 10:56am
Another hedge situation presented this AM so I am now hedged again, this time on USD/JPY.

This particular hedge has a 100 pip gap/spread, so even with a small 30 pip loss, one single position covers the loss when it does finally break. The other position locks in the gains.
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  • #754
  • Edited 2:38pm Jan 5, 2020 11:21am | Edited 2:38pm
Hi Don, I wrote few days ago on the Order Flow discussion. But I want to start with little steps in this world so I would start with volume, and with this gold thread.
I'm preparing charts for the next week and I'm trying to apply the concepts learned here (hoping that I learnt them as well ahah).
I would be really, really happy if you could give an eye on my analysis, thank you again.
The "?" is because I can't find an entry point, I need to leave the Technical Analysis stuff fast as possible

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"In ancient times they had no statistics so they had to fall back on lies."
  • #755
  • Jan 24, 2020 8:21am Jan 24, 2020 8:21am
Hello ff

Hello Don Pato


I´m a novice and starting from scratch here. As I read this thread, I have to go down the barest essentials about the volume to keep going on.


1. Limit orders (asks and bids) provide liquidity in the market or rather they create the market.

2. Market (aggressive) orders (longs/buy and shorts/sell) are transactions whose count (not the amount) is building the tick volume bar. Why / How does the price affect the colour of the volume bar? More market buy orders -> green / more market sell orders -> red?

3. When we short or long, we can place a stop-loss (SL) or/and a take-profit (TP) order. These again are limit orders providing the liquidity but their placing doesn’t affect the tick volume bar.
Is the activation/liquidation of SL/TP a market or a limit order?


How did you start your way in trading? The sheer overabundance of information is making it really hard for novices to start an iterative process. How were you been able to filter the input and create a constructive path to improvement?


Many thanks to all contributors on this thread.
  • #756
  • Jan 24, 2020 9:03am Jan 24, 2020 9:03am
Quoting Pincharol
... When we short or long, we can place a stop-loss (SL) or/and a take-profit (TP) order. These again are limit orders providing the liquidity but their placing doesn’t affect the tick volume bar...
Not quite...Take Profit order are indeed added to liquidity because passive orders can only be placed as follows...ONLY sell orders can be placed above the current market price and ONLY buy orders can be placed below the current market price. When you place a "stop loss" order you are really placing a "trigger' that tells your broker to liquidate your position at the market. This is a market order...not liquidity.

May I suggest you read my next thread: Discussions on Order flow/Volume

Quoting Pincharol
... How did you start your way in trading? The sheer overabundance of information is making it really hard for novices to start an iterative process. How were you been able to filter the input and create a constructive path to improvement? ....
I literally pounded my head on the table, the wall, my computer CPU...and when I awoke from my unconscious state I tried to see what I could remember.

OK, seriously!! (seriously I did literally pound my head on the table)...But I (much like most people here) tried and failed at many different approaches and discovered that NO ONE actually knew how the market actually worked...what causes prices to rise and/or fall. So I decided to ignore the "experts" and start my own odyssey into discovering the true structure of the market and understand HOW it really works. Once I learned this the light bulbs started turning on and execution became obvious. I also found out the true farse of technical analysis and now can actually "see" the mechanism behind most of the techniques applied for trading...I now have to snicker a bit under my breath when I see a fibonacci or elliot wave "prediction".

I truly think you will find value and greater understanding on how the market works and then use that information to execute in your own trading if you read the above linked thread. Best of luck and thank you for commenting. Please continue to contribute as you see fit.
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  • #757
  • Jan 25, 2020 3:00am Jan 25, 2020 3:00am
This is a great thread. I have also found that even using tick volumes from by broker can improve trading.

Real volumes from Futures market are better ofc, but for crosses - there is no other reliable volume information but from a broker...
  • #758
  • Jan 29, 2020 8:09pm Jan 29, 2020 8:09pm
It's funny that there's a slight tendency for fibonacci, usually not very useful.
Count Of Antwerp
  • #759
  • Jan 29, 2020 8:11pm Jan 29, 2020 8:11pm
Quoting countaccrue
It's funny that there's a slight tendency for fibonacci, usually not very useful.
I'm not sure I understand your comment...can you clarify?
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  • #760
  • Jan 30, 2020 10:21am Jan 30, 2020 10:21am
Quoting DonPato
{quote} I'm not sure I understand your comment...can you clarify?
It looks like fibonacci is always happening because it puts 5 horizontal lines on the chart, .
Count Of Antwerp
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