The interaction is this:
Volume moves higher or lower.
Price moves higher or lower.
Volume is lower the futher price is away from a "price level" until price is attracted to a new "price level", then volume will increase and price moves towards this new "price level"
Look at the chart I posted in Post #334:
From 8:00 to 11:30 volume declines, so volume moves lower
As volume moves lower, price moves away from 1.3300 (our price level on the chart)
From 11:30 to 12:45, volume moves higher.....so price is attracted to 1.3300? (NO), a higher price level? (Yes)
So you trade long, looking for a new volume peak, which will form a new price level, that will be higher than the current price.
If the volume goes down and price goes down? Do you bail or do you buy more long? (More Long)
If the volume goes up and price moves down? ...now start looking for the new lower price level, if you can find it, now start looking at overall volume...this will determine if you stop, or you will hit a lower and weaker price level...i.e. will price now bounce up or not? If you can find a price level down here within 10-20 pips of your trade entry, then you have room to play. If you can't find a price level down here, or it is way down... then you look to bail at the best opportune time...don't go beyond 20 pips loss.
Tips:
Volume does not determine direction of market price alone
Price levels and volume strength is where price will move too
Even though price levels change and price moves, look for where price is attracted too (ie. what is volume doing) - don't look at every price move as "this is it, market is going to go way down"....just look at each small move as it happens and evaluate...lots of small moves = big move.
The thing about VPLT is that it tells you what is going to happen next...not 2 hours from now.....next. If you get ahead of yourself and start forecasting and guessing, then you are no longer VPLT trading....you are forecasting and guessing. VPLT is "now" trading. Not historical, not forecasting. VPLT will, if you are paying attention, and read it right, tell you exactly what the market is going to do -- to the next price level.
Volume
Price
Where is price? What price level is it near? What is volume doing when price is near/at this price level?
Go back to the chart at Post #334. Just look at the "general" price moves between price levels and what the volume is doing. Price breaks away from one price level and goes to the next...what does volume do? (I've porposely spaced out the price levels in the chart for visual clarity, price levels do exist inbetween)
Volume is relative. So you can actually trade these big price level gaps as they are on the chart and focus only on the highest volume peaks. But the devil will always remain in the detail inbetween, to know here price is headed.
Volume moves higher or lower.
Price moves higher or lower.
Volume is lower the futher price is away from a "price level" until price is attracted to a new "price level", then volume will increase and price moves towards this new "price level"
Look at the chart I posted in Post #334:
From 8:00 to 11:30 volume declines, so volume moves lower
As volume moves lower, price moves away from 1.3300 (our price level on the chart)
From 11:30 to 12:45, volume moves higher.....so price is attracted to 1.3300? (NO), a higher price level? (Yes)
So you trade long, looking for a new volume peak, which will form a new price level, that will be higher than the current price.
If the volume goes down and price goes down? Do you bail or do you buy more long? (More Long)
If the volume goes up and price moves down? ...now start looking for the new lower price level, if you can find it, now start looking at overall volume...this will determine if you stop, or you will hit a lower and weaker price level...i.e. will price now bounce up or not? If you can find a price level down here within 10-20 pips of your trade entry, then you have room to play. If you can't find a price level down here, or it is way down... then you look to bail at the best opportune time...don't go beyond 20 pips loss.
Tips:
Volume does not determine direction of market price alone
Price levels and volume strength is where price will move too
Even though price levels change and price moves, look for where price is attracted too (ie. what is volume doing) - don't look at every price move as "this is it, market is going to go way down"....just look at each small move as it happens and evaluate...lots of small moves = big move.
The thing about VPLT is that it tells you what is going to happen next...not 2 hours from now.....next. If you get ahead of yourself and start forecasting and guessing, then you are no longer VPLT trading....you are forecasting and guessing. VPLT is "now" trading. Not historical, not forecasting. VPLT will, if you are paying attention, and read it right, tell you exactly what the market is going to do -- to the next price level.
Volume
Price
Where is price? What price level is it near? What is volume doing when price is near/at this price level?
Go back to the chart at Post #334. Just look at the "general" price moves between price levels and what the volume is doing. Price breaks away from one price level and goes to the next...what does volume do? (I've porposely spaced out the price levels in the chart for visual clarity, price levels do exist inbetween)
Volume is relative. So you can actually trade these big price level gaps as they are on the chart and focus only on the highest volume peaks. But the devil will always remain in the detail inbetween, to know here price is headed.
DislikedOh man. Is it just me or i still don't understand the interaction between the price, volume and the price level.Ignored
