Principles of market movements

For example what do you think about this scenario ?

it seems not a bad start ... do you think I should trail my stop behind the max volume of current day until I reach my target ?

Finally price goes under the max volume of today and make a bearish rebound ( this was at 1.4858 ) so I think it was the good moment to closed the trade.

No so easy to spot in real time but I think it will become more easy with time and experience

Are you agree with my interpretation for this trade plan Alex ?

You should use intraday volumes, to see what is happening inside of trading session, where are big positions, accurate entering the market may be done only this way.But you are doing wright thing, making your trades near significant levels.

Thank you for your comments. What do you mean by intraday volumes exactly ? because I use max volume of the current day ... Are you talking about Max volume of hours ( for example ) and tick chart to see where big position are ? Unfortunately i don't have charting package allowing me to do it in forex .. I can only have a cluster chart not a tick cluster chart ...

Imho, when price is in a huge trend, be aware, that big intraday against trend positions could make you believe in a possible reverse, that in these cases usually does not happen, and get you in a wrong position.
Usually this big counter trend positions are from someone that close his positions.

Lubo.

hi

what app are you using for volume?

thanks,
Vip

hello alex

i have two question and hope u answer me ,

first what are the levels of maximum volume we should consider in trading < are they

maximum volume of previous day and current day , previous week & current week , this month and previous month , and max for contract

should we consider max volume of all days of current day ,, max volume of week before previous ,, inly max volume of contract or at least the maximum three values , the same with last week ,, ???

second , what are confirmations needed to enter the trade , i mean intra day confirmation to enter trades using days and weekly contacts volume ?

and must we trade only at the direction of contract , coz i saw many trades end with profit even they are against the contarct volume ,


thx for ur thread and wish u answer my questions .

Hello!!!
Sorry I was silent so long, lots of holidays in May=)Quick view at Gold market...
Today I look for short from max volumes of previous days- 914-915, there was made huge volume, about 5000 lots for few days...strong movements always starts from place where large volumes was made, so I wait for market to reach 911-904 today and even lower, or if Bernanke will tell smth unique and market will go above 914-915 I will put buy limits to 914-15.

Counter with max volumes of previous days:

http://savepic.ru/650601m.png

Whole previous week:

http://savepic.ru/653673m.png

On tick chart I look for market reaction to important prices:

http://savepic.ru/654697m.png

http://savepic.ru/642409m.png

I will answer to all questions but questions that I see need very large answers, it takes a month at least to understand, I teach some people and I can say that it takes aq lot of time- not 1,2 or 10 posts.So I will better make some book about trading by volumes and will share it here.
Sunny day for everyone=)

GR8 I can't wait for the book ......

Alex,

Whatewer you way of trading is, if you make money-happy for you! As far as I understand it's all about Market Profile and a POC and a Virgin POC?
Praviljno? Da, kstati, che ti tut delaesh va6e??? Pochemu ne na traderslaboratory.com ili daytrader.com??? Sdesj odni mtshniki, i k sozhaleniju objemi eto ne dlja nih (FX no vols)!

You are not wrong... when I use POC on spot and look at the futures market I can see that POC is where there have been the most trades have taken place and MAX volume seems to accumulated there.

though I don't want to hijack alex's thread as market profile is different to what alex is trading on.

i am more and more looking at MP and for me this made me understand what the market is doing.

What is a POC?

Thanks

Point of control - it shows you where the market has been the busiest, where traders have found a fair price to buy and sell.

type in Market Profile in google and you will find loads of info... I do not want to hijack this thread as it is not based on the type of trading alex does.

Listen guys, all strategies of trading by volumes came from one sourse- market profile, that was created in 80-th.It has one really useful principle, it pais your attention to places where 70% of max positions are.I have traded by that principle for long time, and I can say that some details are useless and some are very important, it is all experience, and I share it here, and mostly in skype chats, so if you have any questions- faster to find me there.

Now I want to share share 1 interesting strategy on Gold market, it is based on cathing "big dogs":s1:
So I put in filter amount of 300-400 lots and look at 5 minutes-cluster charts.So when at some low or at some high appeares big position(300 or more lots per 5 min), better if such position is not alone- two or more, it colours red(all smaller positions in cluster chart are white and grey).Logic is easy- after strong decline we look for long, after strong gain- for short.So wee look for positions that reverses the market. Of course such stratedy contains some more details, so before using any strategy I always advise to check history at least 1 previous year.

here are examples from previous week:
5/05:

http://savepic.ru/642192m.png

http://savepic.ru/632976m.png

8/05:

http://savepic.ru/635024m.png

http://savepic.ru/636048m.png

And one more example, trade that was yesterday:

http://savepic.ru/628880m.png

http://savepic.ru/627856m.png

thx alex for examples...

i think it's all about confirmations in entring trades,,

price reacts well with volume levels , but confirmations is the bakcbone of this system , it's my opinion

Good day to everyone!!
Today I want to tell you about tick volumes, some base information:

Tick Volume Definition

Tick volume is measuring every trade whether up or down and the volume that accompanies those trades for a given time period. If you are a day trader or a short term swing trader, tick volume analysis will assist you in sizing up the market on an intraday basis. Some traders also refer to tick volume as on-balance volume.

When analyzing the market at large, traders often focus on pivot points to look for changes or continuation in trends. This is where all the money is made and lost. In order to trade this effectively a trader will want to obtain an edge that will assist them in determining whether a pivot has the strength to hold the current trend. While many traders have access to volume on a chart, the one thing that volume charts do not show you is the volume that takes place at a given price. Would you want to buy a break of the last swing point, if you knew that it was broken on high volume? Well maybe you would, but it does not hurt to know what is going on at this critical level. Tick volume provides traders with this detailed breakdown of the trading activity at a given level. Tick volume is critical as for futures traders, as for stocks.

Stocks on the other hand are bought for only one reason, to invest, so large size indicates that people importance and wealth believe the stock is worthy. But currencies move around for a multitude of other reasons making volume size kind of irrelevant. If Honda decide to hedge 500 million before shipping cars overseas of what relevance is that to you?
If you saw an activity like 5 million, 15 million, 50 million, 5 million, 5 million, 100 million,and then again 20 million.... etc etc. What does this tell you? Nothing... You do not know who is moving this money or why.
But what tick volume does tell you is the amount of activity going through the market.

Tick Volume
Simon Hart

Gold

Today`s situation:
All week was gaining, so today I try to short, all I need for that is nice platform of volume

All week chart:

http://savepic.ru/646034m.png

And back to tick volumes.Today at price 958 were made max tick volumes by this time - you may see them, it is 3 large positions of more than 50 lots, that appeared during 1 minute, so this place is strong enough, as it is someone`s large orders:

http://savepic.ru/615314m.png

When market went under 958, I put limit order there. On tick chart we see price reaction to that price, a rebound:

http://savepic.ru/617362m.png

http://savepic.ru/621458m.png

Oil analysis:

Oil gained to 62$ and formed large volumes at such prices:

http://savepic.ru/594864m.png

I wouldnt have looked for long positions in such places, its quite dangerous. Trader tries to short at max levels. Volume is fixed between Thursday-Friday, so on Monday I will look for short from these levels.

http://savepic.ru/648115m.png

Have a nice weekends)