Using volume to predict price movements

https://www.forexfactory.com/thread/post/14330334

NEW CUMULATIVE DELTA PRICE VOLUME STRATEGY

I've updated this theory and trading strategy. Check out the new thread, many improvement to this strategy.

This is the result of testing this indicator for many years and my best recommendation towards a profitable trading strategy. I've been trading financial markets for 15+ years and tried almost everything. It's also a continuation of many previous threads involving this trading theory and philosophy. It's advanced how the indicator works and I might be sharing some background info later, but most important is how to trade it and that is described below where I tried to make it as simple as possible.

Attached in new thread: Random charts from different time frames explaining and showing clear and strong trade signals. It's simple, trade it when red price does not follow green volume. Give it a try and good luck

HOW TO TRADE
1. Price lines are red and volume lines are green
2. Compare the lines
3. Assume both red price and green volume should follow each other and notice differences
4. Analyze when red price moves away from volume and does not follow green volume
5. Trade the difference if both gap but most importantly the ratio of difference is big, for example if red price makes a move at least double in size, the bigger the difference the better trading opportunity. When red price makes significant move or gap both more volatile and higher ratio difference and lines below green, buy. When red price makes significant move or gap both more volatile and higher ratio difference and lines above green, sell. The bigger the ratio and length of difference, the higher probability of profitability (examples shown in later posts)
6. All timeframes and markets available in your Metatrader can be used and I recommend matching trade opportunities when signal is strong on more timeframes. Data is different for all brokers, so after you learn how to trade, data can be compared and overlayed on many different brokers for confirmation.
Indicator and template can be found in new thread. Hope you enjoy the progress and update in strategy.

https://www.forexfactory.com/thread/post/14330334
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Price/Volume strategy (only works on mt5) - steps for indicator installment:

MT5
https://www.mql5.com/en/market/produ...Profile+Seller
1. Go through link or go to mql marketplace and search for 'cumulative delta'
2. Install to your metatrader
3. Download attached template and copy it into your metatrader 'files' > 'open data map' in metatrader (ctrl+shift+D) go to 'MQL5' > 'profiles > 'templates' and put template into this map then restart metatrader
4. Right click on chart in metatrader and go 'templates' and load 'pricevolumemt5'
Credit and thanks to Evgeny Shevtsov
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How to trade

1. Find a precise volume data or indicator
2. Compare with price of an asset
3. Assume both should follow each other and notice differences
4. Analyze which of the two makes the gap
5. Trade the difference in the flows of price and volume

Price line pink - Volume line black

What makes the best trade entries?
Pink price trades: Pink pulls/drags away from black, being more volatile and making gap. The bigger the ratio and length of difference, the higher probability.
Black volume trades: Black pulls/drags away from pink, being more volatile and making gap. The bigger the ratio and length of difference, the higher probability.

Welcome back, Lekkim!
I will follow.
Good luck!

Let's start with a visual presentation of how to trade the price/volume.

1. Find a precise volume data or indicator
2. Compare with price of an asset
3. Assume both should follow each other and notice when compiled volume differs from price movement
4. Analyze which of the two makes the gap
5. Trade the difference in the flows of price and volume

Price line red
Volume line green

Here's two screens of today's current movements on nzdusd and usdjpy.
See the 'tug of war' going on, on nzdusd notice the volume trying to drag down earlier, this is an example of a trade where volume makes a gap trying to move price but ends up surrendering. On usdjpy notice how price tries to move market before moving back to volume line. These are two examples of how to take advantage of this data.

Right now notice how usdjpy price moves upwards to green line / back in sync with volume.

This strategy can be used in all markets on all timeframes, I prefer to daytrade where I analyze data on the day.
Here's on gold and oil today as well, the more times you see these types of graphs, the more you will understand the flows and how to trade them.

Hey where can i find that volume indicator that you showed?

Usdjpy today we just saw how price moved back. White arrow was where it was last post and now it's hit back to 'fair value'
Red lines are potential selling areas and green lines on chart is to show where I would take a buy trade. Hope you understand otherwise feel free to ask.

You can maybe persuade me with a sending of fine wine, haha just kidding.

What you see on screenshot graphs is put together by many elements, both outside data, indicator and a personal touch.
I've gone through a lot of testing of various data on volume, what I got now is my best attempt on valid and precise information which can be fairly easy traded, however it's not automated so it takes some time and work to put it all together in a comparison analysis.

Eurusd today, price lagging behind volume, seems like a little buy at this stage.
What I tend to look for is the biggest gaps and indifferences because they seems to be even better in profitability. Here on eurusd still some fine trading entries, but small compared to what sometimes seen.

Quick pump up around 0,20% and back in sync with volume, another example of profitable daytrading using this method, more to come.

Volume trying to drag audcad up, seems to surrendering to fall down to price level.

Interesting thread, my compliments.
Pls can yioy make the screenshots white since the black ones are hard to read.
Thank you

This is how our audcad suggestion trade progressed.
Now after some trades and visual presentation, I hope it can spark your interest as trader as it does for me. It's kind of simple, just two lines and who pulls, yet advanced in theory.

Thanks gentlemen!
Good to be back, it motivates me with your interest. I hope I've got it figured out now, so I can share some useful info to increase success for us.

Took a textbook gbpusd trade today as shown on this day graph. Price made gap and moved back to volume for close, now long again.

Entering long again on gpsusd, price gap to volume increased further, looking to hold until hit green line.

Audjpy selling, price tries to pump up but volume not following.

This one eurchf today, another example of a 'no brainer' where signals are clear. Been posting enough visual explanatory charts now, you get the drill, now I will focus on making trades based on this strategy.

Red price gaps appear more often than green volume gaps, however here's us30 during usopen yesterday to show an example for training purpose.

All three of today trades goes well, here's another one.
Eurusd made some profit on a short earlier, now method suggest buy so we take it.

Please throw more light on this strategy, what are the factors that inform you to enter or not to enter a trade, and how can one get the volume indicator you are using