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Volume Price Level Trading

  • #221
  • Jan 13, 2013 12:35pm Jan 13, 2013 12:35pm
Hi Spudfyre

Very happy to c you in FF again.I am big fan of MTF Sto.Now u share very useful again.Thank You.
  • #222
  • Jan 13, 2013 9:19pm Jan 13, 2013 9:19pm
Trying to see if i fully understand your method, Spud. I've been watching the chart, looking for a large volume spike. Here's one at 1.3400. Let's see how it pans out.
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  • #223
  • Jan 14, 2013 1:05am Jan 14, 2013 1:05am
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Hi Spud
thank you again for teaching us your method.

Please comment my chart. I am trying to unterstand.
But clearly on this chart I'm not able to grasp whats going on there are lots of question marks.
Thanks for your help.

1. Peak, Level at 3360, presumed because past candles all touched that level
2. Interest down price up, 1 confirmed as a peak,
3. interest up price down, there is more interest in 3360 then higher prices
4. interest down price down, 3 confirmed as a peak, no interest in lower prices
5. interest down price up, interest lower then 4, less interest for higher prices
6. interest up lower price, more interest in lower prices?
7. interest up price down, more interest in lower prices?
8. interest down price up, no interest in higher price, 7 confirmed as a peak, 7 almost touched 3360 confirms 3360
9. interest down price down, no interest for lower price, candles 4-9 giving mixed picture, no clue where price goes.
10. Interest up price climbs higher, maybe a new peak
11. interest same as 10 price up, price wants to stay up there?
12. interest up price up, price wants to climb
13. interest down price down, 12 confirmed as a peak, new level 3375
14. interest down price up, no interest in higher price?
15. interest same as 14 price up crosses 3370, not much interest in higher price confirmed
16. interest shots up price breaks out, new price level somewhere in there, mhhh price did the opposit of what I was expecting
17. interest down price down, 16 confirmed as a peak
18. interest down price down,
19. interest down price up
20. interest down price up
21. interest up price up, falling of interest has stopped, price bottom reached?
22. interest up price up, price reaches almost latest high
23. interest down price down, 22 peak confirmed, new price level 3400
24. interest down price down, no interest in lower prices
25. interest up price down,
26. interest down price up, 25 peak confirmed, new level 3390?
27. interest up price down, no interest in higher prices?
28. interest up price down, 27 confirmed as a peak, level 3390 confirmed
29. interest up price down, price wants to go down confirmed?
30. interest up price down
31. interest up price level
  • #224
  • Edited 10:39pm Jan 14, 2013 10:00pm | Edited 10:39pm
Quoting Spudfyre
Here's a big picture VPLT with a market swing.

Our highest price level green has the lowest volume, so market direct is short.
This flows through red, blue and purple, with purple price level having the highest volume

Then market swings, where the next purple peak volume is the lowest, so time to go long.
When we hit the green price level, volume is highest....long.
If we can buy lower than green price level, say at the red price level long, so much the better.

Ideally we are buying long at the lowest price level, but if we are in a...
Hi Spudfyre,

Thank you very much for your sharing of this brilliant method, and with showing full explanations on all the individual bars on the charts.

I used some form of VSA understanding normally, and usually applies my Price Levels only to the Ultra-High Volume bars.
As read your thread, I just gave it a go and put more price levels at more volume levels as per your method to see what are the differences to my method.

Chart attached is EUR/USD M15 14-Jan, took 2-Long live trades after it went above again at VPL-2 near the Up Arrow, my entries probably not as good as in a few bars too early.

For 1st Long, ended up with 1 exit for +30pips set around VPL-1.

For 2nd Long, on 15-Jan happened to watch monitor screen to see that big down bar, so exit for a +9 pips that I would consider as a scratch trade.


You mentioned that you normally exit for a +20pips trades, do you normally exit all trades OR you leave another position going on for a possible bigger runner?

I can feel a bit tedious when watching and doing all the VPL as I was monitoring way too long into USA session which happened to be way past midnight bedtime in my zone.
Do you have a specific time limited to when you watch for a trade setup like London Open, USA Open, etc for setting up the VPL zones?
Or is it a better setup during the Quiet sessions instead?

And now is next day, the charts may get messy with many VPL from yesterday and today, how do you determine which VPL do you delete for the next day?
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  • #225
  • Jan 15, 2013 4:44am Jan 15, 2013 4:44am
Hi Spud,

I am following your thread with great interest.

Thanks for sharing your experience.


Jacques,
  • #226
  • Jan 15, 2013 10:59am Jan 15, 2013 10:59am
I'm very happy with 7-20 pip trades. I target 20 pips a day and it nets me about 7500 pips a year. That's my "salary" portion of trading which I trade with huge discipline.

Now the other side of the down time inbetween, I scalp. I will discuss this with VPLT shortly as scalping is just plain fun and if you can be consistent with it and VPLT, will make you crazy pips...and every night scalping you will fall into a candle that will just shoot off and grab you 20,30,50,etc pips.

For example, I scalped for about 3 hours on EUR/USD M15 grabbing 2-3 pips, simply by waiting for a candle to rise above or below a price level. It was a very tight range, and 2-3 pips is all that was being offered. I made 15 trades, some were doubles or triples on the same candle, and one candle slid down 25 pips with 2 shorts on it. So in that brief time, I made close to 60 pips and only lost one trade with -0.2 pips.

What, I'm trying to say in a round about manner, is I far prefer to grab small globs of positive pips because they end up being large pip totals...and you are always winning.

I trade any time...scalping also let's you do that. I prefer to trade when I want to trade rather than staying up til 4 am. I find trading get's to be a real grind if you are forced to do the night shift....especially if you keep your day job!

Safer to side step the first opening day for a few hours after the weekend or holiday, just to let the market get going.

Cleaning VPLT -- subjective. I will typically wipe my chart clean when I start a trade round ( I usually trade for 2-5 hours) and then take a long break inbetween. There are times I'll turn on my MT4 and the entire market lines up with my price levels from before...so these I leave on.
If a price level is in my way and/or doesn't make sense to my current trade round...I wipe it. The market will put back our price levels, so having more than say 3-5 active in a trade round is about all you need. When you need price levels on a run up or down...just add them.





Quoting foxybunny
Hi Spudfyre,

Thank you very much for your sharing of this brilliant method, and with showing full explanations on all the individual bars on the charts.

I used some form of VSA understanding normally, and usually applies my Price Levels only to the Ultra-High Volume bars.
As read your thread, I just gave it a go and put more price levels at more volume levels as per your method to see what are the differences to my method.

Chart attached is EUR/USD M15 14-Jan, took 2-Long live trades after it went above again at VPL-2 near the Up Arrow, my...
  • #227
  • Jan 16, 2013 4:12am Jan 16, 2013 4:12am
OK, Spudfyre, waiting to hear new stuff from you and to keep thread alive, posting my chart - I think my levels are ok, but reading volume with candles are still dificult thing for me. So I went short on candle 5 cloese, because:
1. Candle 1 showed low volume on beeing above price level
2. Volume decreased on candles 3,4,5 showing the price dont like to be above the level
3. Candle 5 up, with lower volume than previous candles (what makes me nervous its volume is bigger than 1st candles...)

Any comments Spudfyre and others?
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  • #228
  • Jan 16, 2013 4:21am Jan 16, 2013 4:21am
Looks like I should have wait for 6th candle to close with even more less volume than candle 5 and go long...Spudfyre - please comment
and, Spud, I think more people are struggling with volume and candle reading, more tips and trick would be nice
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  • #229
  • Jan 16, 2013 8:12am Jan 16, 2013 8:12am
Quoting m4ntas
Looks like I should have wait for 6th candle to close with even more less volume than candle 5 and go long...Spudfyre - please comment
and, Spud, I think more people are struggling with volume and candle reading, more tips and trick would be nice
I couldn't agree more. Lack of comments/participation is NOT a sign of a lack of interest in this thread. For me, anyway, this is a completely different way of looking at charts and is unlike anything I have ever done. It looks like a skill well worth mastering but it is definitely a struggle to see how the volume and price movements fit together, especially when you hit that last bar or two on the right side of the screen.

There is definitley value to volume price level trading. There is also a steep learning curve, probably because it is so different from what many are used to doing.
  • #230
  • Jan 16, 2013 9:36am Jan 16, 2013 9:36am
Quoting m4ntas
Looks like I should have wait for 6th candle to close with even more less volume than candle 5 and go long...Spudfyre - please comment
and, Spud, I think more people are struggling with volume and candle reading, more tips and trick would be nice

Yeah bro, just when you think you got it, it bewilders you. I think the interpretation changes from trade to trade as to how to interpret volume around the reference price level.

sometimes I don't know if to look at an individual candle volume in or around the level or look at the over all declining or increasing volume.

Finding the peaks and a reference price level is kinda simple but deciding which way to trade is the confusing part I struggle with.
  • #231
  • Jan 16, 2013 9:46am Jan 16, 2013 9:46am
Quoting jls
I couldn't agree more. Lack of comments/participation is NOT a sign of a lack of interest in this thread. For me, anyway, this is a completely different way of looking at charts and is unlike anything I have ever done. It looks like a skill well worth mastering but it is definitely a struggle to see how the volume and price movements fit together, especially when you hit that last bar or two on the right side of the screen.

There is definitley value to volume price level trading. There is also a steep learning curve, probably because it is so...

you guys are all correct, I thought I was the only one still a bit confused about the method. Its a great concept, it makes sense and Im sure it has tremendous value to it. But trying to read it is confusing at times. I do believe volume and price work together, it could only be that way, volume is what moves any market, period.

But its reading and understanding it. Spud has a great method, unlike any I have seen , it makes more pratical sense than anything else I have seen on these forums that incorporate indicators and even volume indicators. If anyone else viewing the thread can assist in helping others understand the method and is implementing successfully, it would be nice if they could help out spud in teaching those that are having a bit of a tuff time implementing the method. If someone else gets it, that great.
  • #232
  • Jan 16, 2013 9:48am Jan 16, 2013 9:48am
Quoting dappa
Yeah bro, just when you think you got it, it bewilders you. I think the interpretation changes from trade to trade as to how to interpret volume around the reference price level.

sometimes I don't know if to look at an individual candle volume in or around the level or look at the over all declining or increasing volume.

Finding the peaks and a reference price level is kinda simple but deciding which way to trade is the confusing part I struggle with.
I couldn't agree more Dappa!

I am very interested in this method too. I would love to see Spud throw lots of examples at us.

Can't wait to see more posts from Spudfyre!
  • #233
  • Jan 16, 2013 9:52am Jan 16, 2013 9:52am
Quoting dappa

sometimes I don't know if to look at an individual candle volume in or around the level or look at the over all declining or increasing volume.

Finding the peaks and a reference price level is kinda simple but deciding which way to trade is the confusing part I struggle with.
You have perfectly identified the problems I am running into putting VPLT into practice.
  • #234
  • Jan 16, 2013 10:10am Jan 16, 2013 10:10am
Quoting jls
You have perfectly identified the problems I am running into putting VPLT into practice.
Me too !!
  • #235
  • Jan 16, 2013 10:16am Jan 16, 2013 10:16am
I hear you.

More examples and explanations on the way.
  • #236
  • Jan 16, 2013 10:26am Jan 16, 2013 10:26am
Quoting Spudfyre
I hear you.

More examples and explanations on the way.
Top man!!
  • #237
  • Jan 16, 2013 10:29am Jan 16, 2013 10:29am
Hi Spudfyre,

Did you notice this chart the other day ... does this look a good way of picking VPL levels, say with a small pip box size on a Renko chart?

Quoting Mediator
Hi VPLT Trader,

maybe my contribution helps to find good and strong price-levels.

In the picture below you can see that i marked only medium and strong levels, where the blue line thickness indicates the levels of interest.
For evaluating these levels, I simply generate a Renko-Chart with boxsize of 5. ('0' and '5' prices are only relevant).

What you can also see, that (very often) a peak in volume marks a local high/low and indicates a relevant priceaction.

Kind Regards

Mediator

Attachment
  • #238
  • Jan 16, 2013 12:52pm Jan 16, 2013 12:52pm
It looks interesting, I'm not sure what the consistency is like as I have never used Renko for live trading. I would be interested in looking at if further from the standpoint it seems to one way to identify easy trades. If you have done any testing with it, I'd be interested.

Quoting Willowgal
Hi Spudfyre,

Did you notice this chart the other day ... does this look a good way of picking VPL levels, say with a small pip box size on a Renko chart?
  • #239
  • Jan 16, 2013 1:04pm Jan 16, 2013 1:04pm
Quoting Spudfyre
It looks interesting, I'm not sure what the consistency is like as I have never used Renko for live trading. I would be interested in looking at if further from the standpoint it seems to one way to identify easy trades. If you have done any testing with it, I'd be interested.
Unfortunately, I don't have the indicators myself so I havn't tested it. I'm sure it would work well to find Volume Price Levels if we can get the indicators from someone.
  • #240
  • Jan 16, 2013 7:19pm Jan 16, 2013 7:19pm
Quoting Spudfyre



I trade any time...scalping also let's you do that. I prefer to trade when I want to trade rather than staying up til 4 am. I find trading get's to be a real grind if you are forced to do the night shift....especially if you keep your day job!
I'm looking forward to hearing about the scalping too!!
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