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Advanced volume trading

  • #61
  • Jan 2, 2021 5:01am Jan 2, 2021 5:01am
Quoting Lekkim
{quote} Volume is sketchy, indeed. An interesting challenge and how we can make the market transparent I agree with your analysis based on what data you have available I would recommend you breaking down the volume, since that simple indicator only provides with tot no of vol, not directions in sentiment.
Hello Lekkim, yeah it was a basic view, only what tools are provided by MT4 and how on a first glance can or could be interpreted, basically backing up a more pinpointed idea like yours, if the work is put in it shows how the understanding of volume can be understood to a better advantage, sorry I've been a little quiet, had car problems that needed fixingD
I don't need to be good at the game, only good enough to beat my opponent,
  • #62
  • Jan 2, 2021 5:27am Jan 2, 2021 5:27am
Quoting BWilliam
{quote} That single fixed frequency wave can be a intraday swing ? A small paradigm shift required. Consider that.
I will consider that idea when my eyes start failing.
But only after you agree to stop bloody editing every post.

Your'e driving me crazy

Ha Ha - now I need to edit because you edited (God help me)

I saw your post with the arrows, so you can guess where I would have traded as well and more.
Trading thin liquidity at the boundary of the charts
  • #63
  • Jan 2, 2021 5:39am Jan 2, 2021 5:39am
Quoting RickM
{quote} Hi SLB So true. Sometimes we see this unique 3 bar Forex pattern at the top of a move as well - AUDUSD But volume will always shout at as us to pay attention. A full reversal on GBPUSD will often show a single candle on the M1 chart about 8-10 times normal volume or a group of 5-10 candles around 5 times normal volume levels. Cheers {image} {image}
thanks for the info, i learned something today
i normally trade groups of candles where i can see accumulation (balance/imbalance)
and normally in a higher time frame (15m to 1h) but only because i dont have time to stay at the computer to monitorize the price, and for that i use a grid, because when i have time i trade 1m also, the pattern is the same in all time frames

cheers
Uncertainty of the market must be embraced and accepted.
  • #64
  • Jan 2, 2021 8:50am Jan 2, 2021 8:50am
Quoting RickM
{quote} Hi Detector Lets look at data coming out of Chicago, see the different. If we think of liquidity as being fixed, not this deep pool of $$$ rubbish we are fed then we may start to understand. When volume spikes up, it is destroying just about every Sell order on the books (order flow orders). If traders now do not enter, price has to collapse and fall back to central order density. IT REVERSES Orders are exhausted more than you think because orders that sit on the chart are shallow. That is because all liquidity sits within a narrow price...
Hello RickM, wasn't ignoring you, been busy with all manner of things and not getting a moment.
Volume analysis on my part, and this is where I go wrong, is classic signs, as price falls volume comes 2fold, sellers offloading and buyers getting in, not being a master myself see signs of possible entry, as per my chart of the EU you can see my confusion and how interpretation can leave me on the wrong side, I use volume with indicators, if I ever had an edge, this combination is it, you explanation makes very good sense, hoping Lekkim's method will create more clarity to and easier understanding of what we're experiencing.
I was always aware classic mt4 volume was not a true dictation, without showing my ignorance it would be good to know how many streams of volume Lekkim is using as source, thanks for your reply RickM, D

Lekkim, just digressing a little and hope you don't mind, will pull the post on your say so, I often wondered about volume speed analysis, I tried a few time on the board to get a volume indicator coded but very little feedback, VSA, (may already be out) would works as it says on the tin, just a thought, D

I'm liking the banter RM& BW, I too work on a boundary method, oscillation is what the market does even in the trending phase, this is where I find volume best used for the pinball effect, considering the "Physics" WoW looking like I know what I'm talking about, D
I don't need to be good at the game, only good enough to beat my opponent,
  • #65
  • Edited 4:10pm Jan 2, 2021 1:50pm | Edited 4:10pm
Quoting RickM
{quote}{image}
Hi RickM, may I ask which indicator you are using here? Looks like SMA/EMA, but how is the offset of the upper and lower band calculated? Std. dev. of X previous...?
  • #66
  • Edited 8:40pm Jan 2, 2021 8:18pm | Edited 8:40pm
Quoting RickM
Here is that 93% trade on EURUSD on Friday The key factor is knowing price cannot expand unless volume does as well. The only danger is a "slider" which is when price creeps up parallel to market frequency. Trading counter to the market direction is actually very smart when you know your position is heading towards almost all current liquidity. {image}
RickM, check out trenddirection&force indicator. It works the best to "see" no liquidity when price spikes the channels. It's great help to scalpers who trade spikes to warn of potential danger, plays the role of the warning detector. Also tell the scalper which side the aggressive liquidity velocity hits. Google the indicator and test it, it's simple and reliable.
Attached Image (click to enlarge)
Click to Enlarge Name: eu1.png Size: 62 KB
Know what you trade
  • #67
  • Jan 2, 2021 10:47pm Jan 2, 2021 10:47pm
Quoting Lekkim
By collecting a lot of trading volume data from several brokers, money flow patterns emerge. After comparing the actions of other players and market price, we can seek out opportunities to enter the market at favorable times
Are you for real ? You realize us retail traders make up for only 8% of market volume right ? So just because you see retail traders going heavy long on an asset doesn’t mean anything!
Master your mind. Master Trading.
  • #68
  • Jan 3, 2021 6:54am Jan 3, 2021 6:54am
Quoting RickM
{quote} I will consider that idea when my eyes start failing. But only after you agree to stop bloody editing every post. Your'e driving me crazy Ha Ha - now I need to edit because you edited (God help me) I saw your post with the arrows, so you can guess where I would have traded as well and more.
You hit the nail there Rick....
Insanityoing same ting over expecting different results..Einstein
  • #69
  • Edited 8:05am Jan 3, 2021 7:47am | Edited 8:05am
Quoting KareemAliFx
{quote} Are you for real ? You realize us retail traders make up for only 8% of market volume right ? So just because you see retail traders going heavy long on an asset doesn’t mean anything!
Don't be too quick to comment on his post, you have overlooked one issue.
99.99% of all days liquidity is not on the chart right now.
Most marker makers money is spread out over periods of the whole day or waiting for a chance to dump massive liquidity onto the market occasionally.
In the mean time, a group of retail traders can move the market and we can trade with them as well for short periods till the big money is applied.

As an example, EURUSD on Friday about 3.30 hours after London open had volume for about 45 minutes at only 1/4 average volume. There was no major players interested, my guess is they were at lunch and the Algos weren't interested either.
At this time a group of retail traders could move the market - provided they didn't attract the attention of a big player or their Algo's.

There was a moment a Big player did make a move 6 hours after London Open. Someone or a group of market makers actually dumped 20 times normal market volume on just one M1 candle.
Guess what happen? - DAY HIGH

SELL - SELL - SELL


However like you said, the rest of the time they screw us if we let them.
Trading thin liquidity at the boundary of the charts
  • #70
  • Jan 3, 2021 7:47am Jan 3, 2021 7:47am
Quoting KareemAliFx
{quote} You realize us retail traders make up for only 8% of market volume right ? So just because you see retail traders going heavy long on an asset doesn’t mean anything
...
Can you please be so kind and explain me how you get this 8% ... as far as I know (but I can be wrong of course ) forex markets are not centralized and huge amounts of real money are traded outside the market?
  • #71
  • Jan 3, 2021 7:54am Jan 3, 2021 7:54am
Quoting RickM
{quote} Don't be too quick to comment on his post, you have overlooked one issue. 99.99% of all days liquidity is not on the chart right now. Most marker makers money is spread out over periods of the whole day - even then the MM is sitting, waiting for a chance to pounce. In the mean time, a group of retail traders can move the market and we can trade with them as well for short periods till the big money is applied. As an example, EURUSD on Friday about 3.30 hours after London open had volume for about 45 minutes at only 1/4 average volume. There...
That is why we try to get out within 1-5 minutes so big players dont effect us.....Right?
Insanityoing same ting over expecting different results..Einstein
  • #72
  • Jan 3, 2021 8:02am Jan 3, 2021 8:02am
Quoting FXsniper111
{quote} That is why we try to get out within 1-5 minutes so big players dont effect us.....Right?
So you are suggesting that RickM is advocating that the only right way for retail traders to trade is to scalp inside 1-5mins window? I am not disagreeing or agreeing, just want to clarify that RickM and you make clear your posts pls.
Know what you trade
  • #73
  • Jan 3, 2021 8:24am Jan 3, 2021 8:24am
Quoting BlackNapkins
{quote} ... Can you please be so kind and explain me how you get this 8% ... as far as I know (but I can be wrong of course ) forex markets are not centralized and huge amounts of real money are traded outside the market?
Since none of us retail traders have privy to market orders or actual inter-Bank transactions which we are not participants, isn't it correct that any reference to volume is pure speculation?
Know what you trade
  • #74
  • Jan 3, 2021 8:36am Jan 3, 2021 8:36am
Quoting BWilliam
{quote} Since none of us retail traders have privy to market orders or actual inter-Bank transactions which we are not participants, isn't it correct that any reference to volume is pure speculation?
I have to agree..

although the collecting volume from different brokers is some-what "objective" but you don't get the full data of the hedge funds/big banks, even them don't have the full data, but their data is enough to tell where Deutsche/Citi/JP/HSBC is gonna buy/short-sell.

I believe this is something called Over The Counter trading. Correct me if I'm wrong.
Steps to profitability: Collect data, money management, stay bored
  • #75
  • Jan 3, 2021 8:39am Jan 3, 2021 8:39am
Quoting BWilliam
{quote} So you are suggesting that RickM is advocating that the only right way for retail traders to trade is to scalp inside 1-5mins window? I am not disagreeing or agreeing, just want to clarify that RickM and you make clear your posts pls.
you have to ask Rick yourself,but for me at the moment scalping is the only way...
Insanityoing same ting over expecting different results..Einstein
  • #76
  • Jan 3, 2021 8:40am Jan 3, 2021 8:40am
to add to my previous reply:
as far as I'm concern it doesn't matter to them(the big banks) where the other banks might be buying/short-selling, because they are hedging the currency markets against inflation. After all, as of right now USD is the "stable" currency which then, was Gold. This perspective is ofc from other country apart from the USA.
Steps to profitability: Collect data, money management, stay bored
  • #77
  • Jan 3, 2021 8:43am Jan 3, 2021 8:43am
Quoting FXsniper111
{quote} you have to ask Rick yourself,but for me at the moment scalping is the only way...
I have to agree to some point,
predicting what comes 5 seconds to the future is easier than predicting what might come 5 days to the future
this might be hard to grasp for non-scalpers

I myself used to scalp too, scalping with sessions and volatility, but not anymore, I'm slowly switching to algorithmic/automated trading because of time and psychology. it's mentally devastating to scalp IMO
Steps to profitability: Collect data, money management, stay bored
  • #78
  • Jan 3, 2021 8:44am Jan 3, 2021 8:44am
Quoting remonpilip
{quote} I have to agree.. although the collecting volume from different brokers is some-what "objective" but you don't get the full data of the hedge funds/big banks, even them don't have the full data, but their data is enough to tell where Deutsche/Citi/JP/HSBC is gonna buy/short-sell. I believe this is something called Over The Counter trading. Correct me if I'm wrong.
The fundamental problem with volume is the volume from mt4 platform that retail traders work with is tick data from the broker which is mostly filtered meaning "dirty" tick data. This tick data which retail brokers label as volume is not the actual volume of transactions transacted in the interbank market. It may carry the same name of volume but they both don't mean the same thing. So any attempt to pass off this tick data as volume of transactions is wrong.
Know what you trade
  • #79
  • Jan 3, 2021 8:51am Jan 3, 2021 8:51am
Quoting FXsniper111
{quote} you have to ask Rick yourself,but for me at the moment scalping is the only way...
Don't get me wrong, I am not against scalping. We all have our own preferred way of trading, we are individuals with our own preference. Our preference might change in our journey as our experience, expertise and knowledge grow - that's normal. There's no better way to trade, but we maintain an open mind, no bias nor prejudice to listen to others so as to give ourselves the best chance to grow and select the way that best fit us individually.
Know what you trade
  • #80
  • Jan 3, 2021 8:51am Jan 3, 2021 8:51am
Quoting remonpilip
{quote} I have to agree to some point, predicting what comes 5 seconds to the future is easier than predicting what might come 5 days to the future this might be hard to grasp for non-scalpers I myself used to scalp too, scalping with sessions and volatility, but not anymore, I'm slowly switching to algorithmic/automated trading because of time and psychology. it's mentally devastating to scalp IMO
Hehe well i enjoy the action,but thats me....
Insanityoing same ting over expecting different results..Einstein
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