I haven't payed to much for volume.
Then at Sonic and PVMA Ihave seen they are using something related to volume.
It was new for me and to understand it batter I wrote an indicator: you will find at my files.
I was curious which candles has relative high movement vs the volume.
It was a surprize for me: the news candles are. And the reason is trivial:
Everyone agree the price on News X must do down, so everyone will try to sell it, not much stupids are buying it, so the price is going lower and lower and lower
Also nobody want to buy is after news release, they are smart enough to wait to go down and have a few consolidation and then buy it
Some Shorts get filled and are taking to early profits , that,s why you can see some pause, a fake consolidations on the lowest level.
-this kind of candles or starts a trend and then the best is to jump in in the new trend direction OR they are just a fake spies, which has almost instant 100% recovery and should be entered in reverse direction. Only if you parse the news release times to indicator it would help a bit.
Other case is when the close price is near the open price: Some ( volume )divided by almost 0 ( close-open) results a very high, like the news.
-this is a noise in my indicator, it should be fixed, corrected
The interesting things are, when the ratio is low: (Close-Open)/ Volume is low, it means there it was a bull-bear fight and it was equal.
Those cases are usually give a sign of trend /microtrend is starting, because they fought and one of they wins.
Anyway the price movement(Close-Open), the ATR, ADX even the MA are more important then the volume, for me.
Then at Sonic and PVMA Ihave seen they are using something related to volume.
It was new for me and to understand it batter I wrote an indicator: you will find at my files.
I was curious which candles has relative high movement vs the volume.
It was a surprize for me: the news candles are. And the reason is trivial:
Everyone agree the price on News X must do down, so everyone will try to sell it, not much stupids are buying it, so the price is going lower and lower and lower
Also nobody want to buy is after news release, they are smart enough to wait to go down and have a few consolidation and then buy it
Some Shorts get filled and are taking to early profits , that,s why you can see some pause, a fake consolidations on the lowest level.
-this kind of candles or starts a trend and then the best is to jump in in the new trend direction OR they are just a fake spies, which has almost instant 100% recovery and should be entered in reverse direction. Only if you parse the news release times to indicator it would help a bit.
Other case is when the close price is near the open price: Some ( volume )divided by almost 0 ( close-open) results a very high, like the news.
-this is a noise in my indicator, it should be fixed, corrected
The interesting things are, when the ratio is low: (Close-Open)/ Volume is low, it means there it was a bull-bear fight and it was equal.
Those cases are usually give a sign of trend /microtrend is starting, because they fought and one of they wins.
Anyway the price movement(Close-Open), the ATR, ADX even the MA are more important then the volume, for me.
I want to buy PATIENCE
