http://savepic.ru/755010m.png
http://savepic.ru/759106m.png
Scales on the left are in a narrow price range; 33 032 lots are accumulated at 870 level. Buying from this level at 13.20.
http://savepic.ru/748866m.png
We will consider coincidence for short time periods in more details in the intraday section (intraday trading)
Second rule: the longer the time period within which a volume was formed, the more significant price level at which the volume was formed. That is why the levels formed by a contract volume are more important than weekly levels, weekly levels are more important than the daily ones.
Thus, levels rating by volume indicators and time of a volume formation as such:
1.A level by a contract volume (maximally possible of S&P volumes and covering the whole trade period starting from appearance of first lot in it)
2. A level by the volume for a day (current and previous)
3. A level by the maximal volume for a day (current and previous)
4. A level by the maximal volume for an hour (half an hour, 15 minutes, 5 minutes etc)
And here we can give approximate volume indicators significant for level formation in each time period. (You may broaden for yourself this list of coincidence of a volume formation time and its numerical value):
Volume for an hour
Volume for a day
Volume for a week
Contract volume
Approximate indicators of maximal volumes
10 000/20 000 lots
30 000/40 000 lots
100 000 – 200 000
From 150 000 to
500 000 lots.
Logically following from the second rule
Third rule: in any time period the largest value (in terms of a deal’s reliability) usually belongs to its second half. If to consider a month, then the intersection with the central (or the second week) serves as supporting factor for a deal. The most reliable deals intra week are those concluded from the volumes of Tuesday, Wednesday, i.e., in the second half of a time period (when a weekly volume being an additional support and confirmation of previous weekly volumes has already formed; see an example below) as well as intra hour: the first half an hour for volume formation, the second half an hour for selling out from formed levels of maximal volumes.
Let us consider an example of trade strategy for the intraweek time period: 13.10.08- 17.10.08
The key levels of last week: 1020, 1005, 1000. Levels for the period of Monday-Tuesday: 1055, 1018,5
http://savepic.ru/759106m.png
Scales on the left are in a narrow price range; 33 032 lots are accumulated at 870 level. Buying from this level at 13.20.
http://savepic.ru/748866m.png
We will consider coincidence for short time periods in more details in the intraday section (intraday trading)
Second rule: the longer the time period within which a volume was formed, the more significant price level at which the volume was formed. That is why the levels formed by a contract volume are more important than weekly levels, weekly levels are more important than the daily ones.
Thus, levels rating by volume indicators and time of a volume formation as such:
1.A level by a contract volume (maximally possible of S&P volumes and covering the whole trade period starting from appearance of first lot in it)
2. A level by the volume for a day (current and previous)
3. A level by the maximal volume for a day (current and previous)
4. A level by the maximal volume for an hour (half an hour, 15 minutes, 5 minutes etc)
And here we can give approximate volume indicators significant for level formation in each time period. (You may broaden for yourself this list of coincidence of a volume formation time and its numerical value):
Volume for an hour
Volume for a day
Volume for a week
Contract volume
Approximate indicators of maximal volumes
10 000/20 000 lots
30 000/40 000 lots
100 000 – 200 000
From 150 000 to
500 000 lots.
Logically following from the second rule
Third rule: in any time period the largest value (in terms of a deal’s reliability) usually belongs to its second half. If to consider a month, then the intersection with the central (or the second week) serves as supporting factor for a deal. The most reliable deals intra week are those concluded from the volumes of Tuesday, Wednesday, i.e., in the second half of a time period (when a weekly volume being an additional support and confirmation of previous weekly volumes has already formed; see an example below) as well as intra hour: the first half an hour for volume formation, the second half an hour for selling out from formed levels of maximal volumes.
Let us consider an example of trade strategy for the intraweek time period: 13.10.08- 17.10.08
The key levels of last week: 1020, 1005, 1000. Levels for the period of Monday-Tuesday: 1055, 1018,5
skype: aleksey_trader