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  • #1,162,881
  • Feb 20, 2020 4:49pm Feb 20, 2020 4:49pm
Quoting Techanalyst
{quote} Thank you for sharing charts. Now we are talking trading.
Even though you still disagree with me, I appreciate you responding politely. In fact, it was one of the reasons why I took you off my ignore list. I was hoping that we could learn to get along.

I recognize that you have experience. And I value that. Especially the experience you have using the COT report, which is something I have recently become aware of and am doing research on because I see it as valuable information.

But just as you have issues with people using volume in the Forex market, people also have issues with the COT report, arguing that it is lagging information. Of course, this argument has already been debunked. And I feel the same way about volume. I think the argument that it is useless in the Forex market simply isn't true. I know your reasons for saying that, but from my own experience, I can see the value in having it in my trader's toolbox, so to speak.

Another useful way to use volume in the Forex market is to locate strong support and resistance areas that have high probability for reversals.

Please keep in mind that I don't use volume as a 'go place a trade signal,' but rather more of a 'heads up' signal to forewarn me of what might happen shortly after. It's not perfect. But it is useful. And sometimes, like supply and demand areas, it doesn't hold water.

As for supply and demand, I have spent a lot of time studying that. I never really found it to be helpful, however. It's something that just didn't stick with me. But I do see the value in using supply and demand areas as a strategy for trading. The thing that frustrated me with supply and demand trading was that the levels didn't always hold up. And you usually have to have limit orders set to make the best of such areas, which could be risky.
Learn from your mistakes and march on.
  • #1,162,882
  • Feb 20, 2020 6:00pm Feb 20, 2020 6:00pm
Quoting here2there
For the sake of those who might not know how useful Volume can be for trading in the Forex market, I have put together a few images to demonstrate its usefulness. I am certain some will disagree, but I think the images speak for themselves. And by the way, studies have shown that Tick Volume is not that far off from Real Volume. Tick Volume is what Volume Price Analysts use in the Forex market, because Real Volume is not supplied by Forex brokers. Now, let's...
I just have a question and some clarification. Regarding the chart posted and explanations, I found it misleading. Or perhaps i just misunderstood it. Before anything else, i want you to know, I am a learner who is just curious. I am not trying to debate with you. You said Volume serves as a warning or heads up. How can it be when it clearly just follows the price action range. In your chart, you said to notice the volume bar B is shorter than A even though that the B closed higher than A. Of course, volume measure from lows to high, not from close to open right? And becouse it only follows the actual price action, no one knows how big or small it is gonna be until it is actual doing it and done. So how it will help traders? In the bottom of the chart, you said that being "stopped out could be avoided if one knows to read volumes". How will you know if it is after the fact? I understand you said it doesn't give us signals or direction but I don't understand how it can warn us or give us a heads up. I hope you can explain further... -just confuse-
Only an idiot knows with certainty to where the market is going.
  • #1,162,883
  • Feb 20, 2020 7:35pm Feb 20, 2020 7:35pm
Quoting MrBullBear
{quote} I just have a question and some clarification. Regarding the chart posted and explanations, I found it misleading. Or perhaps i just misunderstood it. Before anything else, i want you to know, I am a learner who is just curious. I am not trying to debate with you. You said Volume serves as a warning or heads up. How can it be when it clearly just follows the price action range. In your chart, you said to notice the volume bar B is shorter than A even though that the B closed higher than A. Of course, volume measure from lows to high, not...
The bullish candle was already closed. I hid the other candles for the sake of making the point that just because the candles appeared to be giving a bullish go signal, it didn't mean it was wise to go long.

The volume said something different. The volume suggested it really wasn't a bullish signal but rather a bearish one. Hence, a warning not to take the trade.

If that bullish candle really was of greater volume than the bearish candle before it, then it should have had more volume, and thus the size of the volume bar would have been larger. But that wasn't the case, which is why it is considered an anomaly. The candle closed higher, appearing to show strength, while the volume displayed weakness.

It's kind of like divergence. Price action moving higher and higher on the chart appears to show strength, while RSI displays the momentum of the move as becoming weaker and weaker. A trader can use divergence on RSI as a means to prepare to exit a trade that could potentially be turning against him or her or to use the same information to look for a trade entry opportunity.

Volume gives better signals than RSI, in my opinion.
Learn from your mistakes and march on.
  • #1,162,884
  • Edited 8:56pm Feb 20, 2020 8:20pm | Edited 8:56pm
Quoting MrBullBear
{quote} Or perhaps i just misunderstood it.
Here's another example.

Notice how candle ‘B’ closes lower than candle ‘A,’ but the volume (2) for candle ‘B’ is greater than the volume (1) for candle ‘A.’ Moreover, the spread for candle ‘B’ is lesser than the spread for candle ‘A.’

This is an anomaly.

And what it is suggesting is a pullback is coming. And that is precisely what happened. In other words, it was a heads up to the trader to either exit his position (depending on his strategy) or to prepare to add more to the trade at the optimal trade entry of the pullback using a limit order.

It can be estimated that the pullback can be anywhere from 20% to 50% of the candle’s range with the lesser volume.

Attached Image (click to enlarge)
Click to Enlarge Name: Volume 5.jpg Size: 148 KB


I realize this is all in hindsight, and that may be frustrating to some people. I don't know how else to explain it. I am by no means a perfect trader. I wish I were. I'm just trying to do the best I can with the tools I've got in my trader's toolbox.

Please keep in mind that I use volume as a warning signal of what could potentially happen next or in the near future. I don't use it as a 'place a market order' signal.

By the way, in case you or anyone else wants to know what volume indicator I am using, it can be found on MQL5. It's called
TrueVolumeSurrogate (I would post a link to it, but I don't know if that is allowed, as it is an indicator requiring a purchase).
Learn from your mistakes and march on.
  • #1,162,885
  • Feb 20, 2020 11:02pm Feb 20, 2020 11:02pm
I threw a towel on to 0816. Woke up to find it dried. We now return you to your normal Bear programming.... with so much red news today, if we get a return to 0820, we can towel it dry
  • #1,162,886
  • Feb 20, 2020 11:04pm Feb 20, 2020 11:04pm
PMI numbers today is all that I am interested in today, health of economy
  • #1,162,887
  • Feb 20, 2020 11:18pm Feb 20, 2020 11:18pm
Volume can also be used to find key areas of support and resistance. When you see an abnormally large volume bar, you might consider drawing lines at the opening and closing price of its corresponding candle.

Look at the image below and see how price reacted to the area drawn from the volume in this way.

And as an aside, look at the yellow lines with the very outspoken wicks. When you see wicks like that, draw lines, because there is a high probability price will react very strongly to those lines, as can be seen on the chart.

Attached Image (click to enlarge)
Click to Enlarge Name: Volume 6.jpg Size: 174 KB


Note: I prefer using higher time frames, such as the 4HR, Daily, and Weekly charts.

I also prefer to trade in the direction of the main trend. But sometimes I digress.
Learn from your mistakes and march on.
  • #1,162,888
  • Feb 20, 2020 11:36pm Feb 20, 2020 11:36pm
Continued from Previous Comment

If you have a large volume spike and a small spread, then it is OK to draw the lines on the high and the low of the large volume bar's corresponding candle, rather than drawing them on the opening and closing price.

Attached Image (click to enlarge)
Click to Enlarge Name: Volume 7.jpg Size: 164 KB
Learn from your mistakes and march on.
  • #1,162,889
  • Feb 21, 2020 12:06am Feb 21, 2020 12:06am
this indicator on chart finds the bar with the highest volume in 14 periods

then returns high and low price of that bar

to all volume traders ; go buy this low volume bars now

daily
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDDaily.png Size: 24 KB

weekly
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDWeekly.png Size: 25 KB
  • #1,162,890
  • Feb 21, 2020 12:23am Feb 21, 2020 12:23am
Quoting PatienceFx
this indicator on chart finds the bar with the highest volume in 14 periods then returns high and low price of that bar to all volume traders ; go buy this low volume bars now daily {image} weekly {image}
I prefer to draw my own, because there are variables such indicators do not put into perspective due to limitations.
Learn from your mistakes and march on.
  • #1,162,891
  • Edited 12:43am Feb 21, 2020 12:25am | Edited 12:43am
Quoting PatienceFx
this indicator on chart finds the bar with the highest volume in 14 periods then returns high and low price of that bar to all volume traders ; go buy this low volume bars now daily {image} weekly {image}
going by that concepot, h4 range is defined , we now see which side we get the breakout

Attached Image


Attachment g
  • #1,162,892
  • Feb 21, 2020 12:35am Feb 21, 2020 12:35am
Unless circumstances dramatically change for the EURO, I believe price will eventually make its way down to the green line. How long it will take to get there? I don't know. But I do expect to see a correction before it reaches that point.

Attached Image (click to enlarge)
Click to Enlarge Name: Volume 8.jpg Size: 194 KB
Learn from your mistakes and march on.
  • #1,162,893
  • Feb 21, 2020 12:38am Feb 21, 2020 12:38am
I need to figure out how to make my images smaller!
Learn from your mistakes and march on.
  • #1,162,894
  • Feb 21, 2020 1:03am Feb 21, 2020 1:03am
Quoting Js3mwtRc
I wait it to turn lower (near 1.0775 ) so I can buy some today I think it is going to give us a retrace and Friday many will want to take profits, maybe I am lucky.
It was a good move from down there, but it didn't broke too much to the upside and still in a range, now closed to break even, because of EU PMI's, lets see how the price will react.
Looking for profitable short term trades ...|
  • #1,162,895
  • Feb 21, 2020 1:05am Feb 21, 2020 1:05am
Quoting here2there
{quote} The bullish candle was already closed. I hid the other candles for the sake of making the point that just because the candles appeared to be giving a bullish go signal, it didn't mean it was wise to go long. The volume said something different. The volume suggested it really wasn't a bullish signal but rather a bearish one. Hence, a warning not to take the trade. If that bullish candle really was of greater volume than the bearish candle before it, then it should have had more volume, and thus the size of the volume bar would have been larger....
Thank you for explaining it further. Now I understand the use of it. It is clear to me now why you have disagreement with techanalyst. I don't want to offend you but it seems you are mature enough and can take correction.

Base on your explanation and examples, i can tell that you misunderstood it and you are using it wrongly, the reason why you don't get what techanalyst trying to explain.

Volume is simply a measurement of ongoing transactions. It is in no way telling us strength or weaknesses of a bullish or bearish candle. No way it gives as a clue of what will be the next color of the candle. It cannot warn us of a possible reversal or signal a pullback as you thought. And in no way it gives a warning signal or heads up of what could potentially happen next or future as you said. I am really intrigued of the author of that book that you read. Is he/she a Forex Trader? A winner? Does he/she really understand the Market and its behavior? Well, if he does, he wouldn't write that book and make delusional examples and false claims of its functions coz he knows it will backfire. Volume is just a Volume.. a measurement of the current size of ongoing market related transactions worlwide. Nothing more...

So, the use of it is for reference if we are curious knowing the size of transactions or number of ticks of the candle that already formed. Other than that will be scary....

I hope you don't get mad. We can talk more on any other topic and exchange opinion... that's how we learn. That's how we improve our Trading skills, correcting false belief, knowing others opinion, understanding our wrongs, refining our perspective towards market. That's how we become better.
Only an idiot knows with certainty to where the market is going.
  • #1,162,896
  • Feb 21, 2020 2:36am Feb 21, 2020 2:36am
  • #1,162,897
  • Feb 21, 2020 3:35am Feb 21, 2020 3:35am
Quoting MrBullBear
{quote} Thank you for explaining it further. Now I understand the use of it. It is clear to me now why you have disagreement with techanalyst. I don't want to offend you but it seems you are mature enough and can take correction. Base on your explanation and examples, i can tell that you misunderstood it and you are using it wrongly, the reason why you don't get what techanalyst trying to explain...
Thanks for sharing your opinion. My experience does not agree with you. And I think the images I shared here speak for themselves.

As for the author of the book, I believe she has been trading since the late 90s. Yes, she trades the Forex market among other things.
Learn from your mistakes and march on.
  • #1,162,898
  • Feb 21, 2020 3:52am Feb 21, 2020 3:52am
Quoting Js3mwtRc
{quote} It was a good move from down there, but it didn't broke too much to the upside and still in a range, now closed to break even, because of EU PMI's, lets see how the price will react.
EU did it again today, lets see, if this correction holds now.
Looking for profitable short term trades ...|
  • #1,162,899
  • Feb 21, 2020 3:53am Feb 21, 2020 3:53am
Quoting Techanalyst
{quote} Good day. Start by watching videos from this trader. I am sure it will help. If something is not clear, ask and will try to explain in best way possible. Trade safe. https://www.youtube.com/channel/UCA0...odaCB27p-R7o0A
Thank you very much. I really appreciate.
  • #1,162,900
  • Feb 21, 2020 3:59am Feb 21, 2020 3:59am
Quoting Js3mwtRc
{quote} EU did it again today, lets see, if this correction holds now.
it had no hope of setting a new high, and now it’s not coming back.
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