Volume Trading

yes, i agree

but you have to have a strict rule how to do that. As you have seen lately, price have gone down a little and then goes to stoploss. So that down movement is not a good indication of bears having a control. If we had enteres a trade at volume levels, we had already put stoploss to breakeven when price starts to move against us.

But i agree that entering a trade simply at volume levels is quite blind (even though the levels especially on eur/usd has hold pretty well)

if you find a strategy or a combination of indicators that filter bad trades let me know

You are right, I suppose not every time it pulls away from that level will it always continue, I'm trying to look at 2 things for this to really be a high probability. 1st if price gets to either previous day/week/month high vol level, whats the highest levels for last 2-3 hours if they are all high and bunched in the same region in the direction I want to go, then there is still a congestion area. 2nd I've been using CCI as well and thats what Ive studied for past 2 years, so if I can get divergence or some kind of reversal pattern maybe I can add that to the equation, still a work in progress it seems.

i see,


btw what period you use for cci ? i use 14

yes 14 I use woodies CCI range bars tho not minute bars

Just shorted gold at 817.2 I had 2 confirmations, 817 area was where my charts showed previous day highest volume level it went through that level and came back down, I had a nice trend change pattern and divergence on my CCI put in a 20 stop loss 40 target moved to be after +20 move I'll post as this trade finishes out.

that first gold trade went +20 then came back to b.e. I had 2 problems I was still in December needed to be in Feb. but beside that volume for current area started to accumulate and found a congestion but no harm next trade. Once I got Feb chart up I had week level at 820 and previous day at 818, shorted gold at 817 as it broke away from those 2 levels, also using my zero line on cci as resistance , same thing 20 stop loss 40 target 1 and move to b.e. after +20 got +40 in about 10 minutes letting runner go for as long as possible. locked in +10 on my runner after my 40 target.

took +40 and the runner came back to my +10 lock in for a total of 50 ticks or $500 , looking back using a 20 stop loss seems reasonable , but thats only about a 1 to 1 risk/reward ratio with my runner idea, I need more examples before I nail that down. Maybe just all in all out for a 2 to 1 , but when things are moving its not unusual for gold to move 100 ticks in just a few minutes. Thanks to Volume Trader for starting this thread I think there is a lot of potential here, and I hope you dont mind me posting my stuff either.

how did you get gold volume levels ?

and why feb gold and not dec gold ? thanks

Well I guess some brokers are not letting you even trade Decembers contract right now, and the open interest for gold is much higher now on Feb. As far as the volume levels, I can put an indicator on my price charts called Volume Zones, you can see them on the charts Ive posted on the left of the price pane, and depending on how wide you scale out your chart it will tell you where the highest level of volume is at what price for how ever far back as you want. So I went back a week on gold and got highest at 820, then just went back just a day and got about 818, but these are just general zones nothing exact. and I also watch very closely the levels for past 2 hours, and you can really see price dump as it falls out of these zones. But I really like to see some confirmation out of my CCI.

On a further thought, is it possible for a high level to be either support or resistance? On the Nasdaq Volume Traders program was saying that 1158 was both weeks and months highest level so far, it reached it today but never rejected down below, and looks as though it became support. The first picture it bounces off the top of it a couple times, I was looking for a short somewhere but it never broke below and no confirmation, but rather continued up making new highs. You could have taken either of the 2 bounces and as you can see would have easily gotten 10 points. I did take a short on this at one point seeing a little divergence but it was way too early and it never confirmed by breaking below these levels. So my initial feeling of waiting for 2 confirmations still feels like the way to go.

i see,

ok thanks.

short ES at 886 or eurusd 1.2955.....pick yourself

What broker, platform are you using

Great that thread lives without me .

Agree with lumesh - eurusd shows great trade for today, from yesterday's volumes down to max volumes for this week.

I desided to trade only eurusd and gbpusd . And wish to have more time

Anf gbpusd with volumes from previous day.

Looks like we should only search for areas of support resistance where levels are close.

Todd I am using Ninja Trader, I have both PFG, and Zenfire data, but I am still only in sim mode, have been for a very long time, hoping to go live sometime in Feb. but I will use PFG as a broker.

NQ was showing 1170 as Wed. highest volume level, Went long at 1177.25 as it pulled away from the furthest it could go around 1170 this time using that level as support. This trade has a couple things I dont like, Wed highest volume level wasnt really that much, and also and this is in an area where all the volume levels from 1177 through 1187 are pretty much equal so there might be a lot of slow action congestion during this one. Still 6 point stop loss, and a 12 point target, we'll see what happens.

NQ pushed up in my favor about 6 points, and as I expected was very slow, took about an hour. I normally would have moved to be after 6 point but I went just shy of that where I figured last recent support was, because 1177.25 is just where I got in not necessarily any significant price was. The trade ended out at a loss of 1.25 points -$50 on two contracts. Over all not a bad trade it did show some follow through but on a day like today, I didn't expect much.

Ok, the new version is ready, as of now I have added Dow Jones index, and JPY/USD currency. The data loaded is only for November, I think I do not need to upload Octobers data.

The old version will be still running on old url (direct domain name) until I'll be sure everything is working.

The new version is accessible on subdomain: new. Just place a 'new.' before domain and you will got updated version.

I will add more products in a few days.

hi,

first of all big thanks for adding new products

i have one favor to ask:

since cme uses futures and represents the symbol like JPY/USD...is it possible to convert (invert) the values to USD/JPY so it would be easier for us to track the levels the way they are represented in spot fx ?

thanks a lot.

Dear friend volume trader
I would like to have a copy of your system but the problem is i cannot send you privet message, would you consider this post as message asking you to send the link to me please, by privet message.
thank you