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B.S. Trading with Kenneth Lee

  • #5,621
  • May 9, 2013 11:17am May 9, 2013 11:17am
Quoting andriessmith
Hi Amcee, for attaching a MA to your volume indi : Click on Navigator, click on indicator (not custom indicators). Drag Moving Average into your volume box. Under parameters select "Apply to:" First Indicators data. It should work

thanks a lot, it works MA implemented , and particular volume candles looks still different, but this might be the broker data-feed I guess ....
  • #5,622
  • May 9, 2013 11:51am May 9, 2013 11:51am
Hi Amcee, great. I am still a newbie regarding volume, sorry can't help there..

Have a great day
  • #5,623
  • May 9, 2013 1:38pm May 9, 2013 1:38pm
Quoting Amcee
{quote} thanks a lot, it works MA implemented , and particular volume candles looks still different, but this might be the broker data-feed I guess ....
I believe the volume is going to be a bit different for everyone unless you are using the same broker since the volume shown is the volume traded with your broker & not the total volume traded in a particular pair worldwide since there's not one centralized FX market.
  • #5,624
  • May 9, 2013 3:01pm May 9, 2013 3:01pm
Quoting Amcee
{quote} Hi TraderinSD thank you very much for your detail explanation. I am following your Volume explanations for some time and like it very much. It happens to me quite often to pick not the right SD zone so I trust it will help me to improve a lot. However I have a problem with indic. See screen, hows different picture I got it with standard settings than yours. Could you instruct me how I could fix it to get similar look to yours? maybe you could share tpl.? I tried to put MA in to this indic window however every time i try it appears at the...
I believe Andriessmith gave you the answer as to how to place the MA over the volume indicator.

Thank You Andriessmith



Points regarding the use of volume:

1) Always view within the context of the preceding volume.

2) Volume by itself is not the full answer.

3) Look at volume as it relates to Price Action as it "approaches" the level and once "at" the level.

4) Volume use when trying to find the better levels, when you have many to choose from, you still have to look a PA on the approach an at the level.

5) Volume as it relates to the spread ( H-L ) of the candle

6) Volume as it relates to the size body of the candle.. PINs vs Engulfing vs. Large Body Candles

7) Much of this is traditional, some is not.

Context, context, context.. This will take time.. There are many opinions about the use of TICK Volume in Forex.. Some will agree.. many disagree.. It works for me far more often than not.

Probabilities not Absolutes. This will require a REWIRE of your thinking. All to many traders are looking for Absolutes.. hence MASSIVE frustration, arguments, rants , discontent, anger, destruction of their accounts.. Add to this the overwhelming need to be "right" and disaster is imminent.

just my take

TSD
  • #5,625
  • May 9, 2013 3:29pm May 9, 2013 3:29pm
Quoting srt
{quote} I believe the volume is going to be a bit different for everyone unless you are using the same broker since the volume shown is the volume traded with your broker & not the total volume traded in a particular pair worldwide since there's not one centralized FX market.
Yes, that would be correct.. This is why it is so important to view TICK volume within context, context, context. Even with the variations I am still able utilize volume as long as I maintain context. An example of this would be low volume periods Asian ( I trade quite a bit ) vs. higher volume periods London / US...We still high and low volume as it relates to PA ( within the context ) on the lower overall volume, during the Asian session. Will it be right 100%.. NO... As stated in a previous post.. It is the Probabilities that I look at .. Not the Absolute... Tick Volume is activity...very high activity - within context ...comes from only one group the Smart Money.. There is simply not enough retail traders, trading large positions, in a 3 TRILLION market, to cause this type of volume...They are trading 100's of lots in all time frames, heading in the same direction.. This ACTIVITY is going to show up...and when you view this with the context of S/D levels, you have one more tool at your fingertips.


Just my 3 pips

TSD
  • #5,626
  • May 9, 2013 4:51pm May 9, 2013 4:51pm
Quoting TraderinSD
{quote} I believe Andriessmith gave you the answer as to how to place the MA over the volume indicator. Thank You Andriessmith Points regarding the use of volume: 1) Always view within the context of the preceding volume. 2) Volume by itself is not the full answer. 3) Look at volume as it relates to Price Action as it "approaches" the level and once "at" the level. 4) Volume use when trying to find the better levels, when you have many to choose from, you still have to look a PA on the approach an at the level. 5) Volume as it relates to the...
Hi, thank you very much for so detail and patient explanation I appreciate it very much.

Wishing you lots of pips
  • #5,627
  • May 9, 2013 6:26pm May 9, 2013 6:26pm
Quoting srt
{quote} I believe the volume is going to be a bit different for everyone unless you are using the same broker since the volume shown is the volume traded with your broker & not the total volume traded in a particular pair worldwide since there's not one centralized FX market.
Thanks for your reply. I have just put together two different brokers Volumes, and they looks different in terms of value. However in case there is significant difference between particular candles it is visible quite good on both, maybe only on brokers with higher volumes need to see more precisely in to indic. as sometimes only slight difference visible.

many pips to you all !
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  • #5,628
  • May 9, 2013 6:49pm May 9, 2013 6:49pm
Quoting Amcee
{quote} Thanks for your reply. I have just put together two different brokers Volumes, and they looks different in terms of value. However in case there is significant difference between particular candles it is visible quite good on both, maybe only on brokers with higher volumes need to see more precisely in to indic. as sometimes only slight difference visible. many pips to you all ! {image}
In forex, it is normal to have different volume from different broker. Forex is not centralized like Future or Option. Each broker act on their own, so the volume represent their volume not a consolidated one of the entire market

Martin
  • #5,629
  • May 10, 2013 2:19am May 10, 2013 2:19am
I was triggered on AUDJPY last night on H1 demand level created yesterday, I took the first dip into H1 demand, it rallied 110 pips I had no TP, so still holding a bit more for a retest of those highs since it's making higher highs and higher lows.

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Set and Forget supply and demand trading community
  • #5,630
  • Edited 9:20am May 10, 2013 2:23am | Edited 9:20am
Quoting Amcee
{quote} Thanks for your reply. I have just put together two different brokers Volumes, and they looks different in terms of value. However in case there is significant difference between particular candles it is visible quite good on both, maybe only on brokers with higher volumes need to see more precisely in to indic. as sometimes only slight difference visible. many pips to you all ! {image}


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Here is my chart and volume that mimics yours..Your chart on the left more closely resembles this chart posted. Your chart on the right is not near as definitive in its volume.. looks all the same.

When I decided on a broker I looked for one that had a more defined volume. The difference in volume of your examples is very apparent. When looking a TICK Volume it is this activity definition that we want to see. We know that there are periods of very low volume and periods of very high volume ( or in the case of Forex ..this is represented as activity ) Your chart on the right, the "Activity" looks pretty much all the same.. No definition.

I am of the opinion that a broker that offers this "definition of activity" / TICK Volume, is the broker of choice.. Some will agree.. many will disagree.

As will any indicator or tool we use to trade, we look for that definition. PA data will operate the same way. Using the same logic, some brokers will be more definitive in the price date .. some will not. This is challenge we have in Forex.

I choose to stay with my central theme of probabilities vs absolutes. I believe the most effective way to use TICK Volume in Forex is to maintain the idea of context, adding to that basic rules as defined by VSA and other volume definitions.

Lets look at another context idea.. There are those who will say that S/R's are the same as S/D's. Yes, sometimes they can be the same..But more often they are not.. Why ?? It is the context of where they exist, and what that existence represents, that defines the difference. It is the challenge we all face in a decentralize market.

Such in my point of view on why I use TICK Volume in Forex. Its what works for me, more often than not. Some will agree.. most will not.



TSD
  • #5,631
  • May 10, 2013 2:30am May 10, 2013 2:30am
Quoting panoramia
I was triggered on AUDJPY last night on H1 demand level created yesterday, I took the first dip into H1 demand, it rallied 110 pips I had no TP, so still holding a bit more for a retest of those highs since it's making higher highs and higher lows. {image}
As I recall you trade the 1Hr exclusively. It is refreshing to see that others trade the S/D method in a slightly different way. KL has mentioned in the past. How each one of use will trade this method slightly different. This shows the opportunity one has when trading the S/D method..You on the 1HR.. KL on the 30M..Me on the smaller TF's in the Asian session adding volume.. One can trade range, one can trade trend..In any time frame.. Any market.

TSD
  • #5,632
  • May 10, 2013 2:33am May 10, 2013 2:33am
Quoting TraderinSD
{quote} As I recall you trade the 1Hr exclusively. It is refreshing to see that others trade the S/D method in a slightly different way. KL has mentioned in the past. How each one of use will trade this method slightly different. This shows the opportunity one has when trading the S/D method..You on the 1HR.. KL on the 30M..Me on the smaller TF's in the Asian session adding volume.. One can trade range, one can trade trend..In any time frame.. Any market. TSD
Thanks for your message. I mostly trade on H1 and H4 SD levels. Sometimes I drill down to M15/M30 levels if I presume there must be some SD inside extended range candles within higher timeframe candles. If the imbalance is good and with the trend, then I will take the risk. Always taking a 1% risk on all my trades, so whatever happens happens. Not into lower timeframe S/D levels, I just want to set & forget my trades, and for that it's better at least H1 and H4 SD levels with the trend or at the higher timeframes extremes (low or high in the curve). But as you said, supply and demnad works on any timeframe, because that's what moves the markets
Set and Forget supply and demand trading community
  • #5,633
  • May 10, 2013 2:37am May 10, 2013 2:37am
Planning this short on EURUSD. Nice H1 speedbump (drop, base, drop) with 13 pips + some wiggle room above the level, nice profit margin, the euro is in a downtrend, the $ index rallying. It might not get there and break those lows, if that happens then I will move my entry at a lower area, if any.

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Planning a long on USDCHF, a level similar to the EURUSD 1H short. There is a brand new 4H speedbump demand that was created on USDCHF, not yet on EURUSD. Planning a short on the lower H1 speedbump because the new 4H speedbump demand is too high in the curve and if there is good supply it might be absorbed. Will only take the 4H demand level if it makes higher highs

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If market absorbs some supply on USDCHF I will lean on this 4H speedbump, but right now there is no profit margin (at least 3:1 the risk in pips of the level which is 28 pips + wiggle). I need that price rallies at least 90 pips or more pips to validate that 4H speebump. Following the 3:1 profit margin rule. THe 4H level looks great though

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Set and Forget supply and demand trading community
  • #5,634
  • May 10, 2013 2:56am May 10, 2013 2:56am
Planning a nice H1 speedbump supply with AUDCAD breaking lows and room to lower D1 demand. It also matches the 50 EMA on H1 which is another odds enhancer for my type of trading, used a lot by some OTA instructors. 22 pips risk + some wiggle room above the speedbump.

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Look at the D1 curve on AUDCAD. Price is got lots of room to lower D1 demand, we're with the trend. Demand is being violated and supply is being respected all the way down, so I short on all valid supply levels till I get to the extreme D1 demand lower. It might not make it there because it's breaking lows at 1.0160, if it keeps on dropping and forms new H1 or M15 supply, I will go for them

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Set and Forget supply and demand trading community
  • #5,635
  • Edited 6:55am May 10, 2013 4:35am | Edited 6:55am
Trying this M15 demand speedump on CHFJPY when droppinig to retest an area of resistance that had been recently broken. A clean speedbump formation with 7 pips + wiggle room risk

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The M15 demand level worked really well as you can see below. Closed it already for 55 pips, with a 10 pip risk. 5:1. I love it!
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Set and Forget supply and demand trading community
  • #5,636
  • Edited 11:29pm May 13, 2013 10:36pm | Edited 11:29pm
Quoting TraderinSD
{image} So let look at some trading opportunities using the 15M inside the BASE of the Rise-Base-Drop pattern...Again think in terms of the Pattern w/in the Pattern. We know the that price has just bounce short from the Triangle formation. We know that the Demand below from the Rise-Base-Drop pattern acts like a price magnet drawing price back to it.. ( Higher percentage ) Price now creating LH's inside the Base #1..Why not this level? Price did spend a short amount of time there right?? Yes but look a the volume as it left this are.. Weak.. #2...
Hello TraderinSD:

I am a little confused by the statements

"Level #3.. See how the volume coming into #3 Supply was good with wide spreads on the candle"

and

"Once price made it inside our level Volume dried up ( all the UP candles had no volume and the spreads were small) Obviously no desire to take it long.. Demand drying up"


What I am missing is why when the first time that level #3 was hit high volume meant sm wanted to take prices down ? But the second time it was hit low volume meant prices were going down. It must have some thing to do with the candle sticks spread or maybe the sequence of events. But I am not sure.

Is this a pattern then, where high volume and wide spreads at a level followed by a move down and then when price returns to that level for the first time with low volume and small spreads it means price will go down again ?

Please explain.

Thanks

PS: Your annotated charts are great.
May the Forex be with you.
  • #5,637
  • May 14, 2013 1:09am May 14, 2013 1:09am
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Sometime you have to go way back to find a level that makes sense. Daily

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Move down to the 4HR. Found a area for a stop level as the entire Supply Level daily was way to big. KL has spoken about this.. Moving from a larger TF to smaller TF's to better define your area.

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Price basically wandered into the area. So I waited for a bit to see if I might get some better PA.

Now look at the volume as price came into the level the first time. Volume was increasing consistently. Then price retraced a small bit. Remember we were waiting due to the meandering PA.. Price came back in a second time.. but look at the volume this time.. Overall very weak on the UP move..Price had a its last push up on Higher volume but still weak over compared to now.. Context !!.. We got short a 2 lot.

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Took a Look at the higher TF.. Had a solid PIN.. What I am doing is looking a different TF's to see if I can see additional PA that helps confirm the move.
  • #5,638
  • May 14, 2013 1:32am May 14, 2013 1:32am
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Lower High.. Basically we just waiting to see if the trade will move in our direction. Good sign strong PIN on Volume.

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We let the trade work throughout the day. Moved my SL down.

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We can see how price has moved in our favor..Hit an obvious support level and bounced on good volume.

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Drew a small Supply Level thinking price may roll back up. Will see if price will hold a roll back down to our TP.??
  • #5,639
  • May 14, 2013 1:39am May 14, 2013 1:39am
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Stepped down to the 5M.. What we are looking to see is how PA will act coming into this level.. PA had a solid build on volume coming into this Support Level.. If you look left on the 5M you might see a Demand Level..101.30..Strong Volume into this level.. Demand.. This is the reason I tend to look at multiple TF's .. For me it helps define areas to help manage the trade.
  • #5,640
  • May 14, 2013 1:51am May 14, 2013 1:51am
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Price moving into Supply.. we will exit if it does not hold
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