Jewels of knowledge

Hi,

Any information in FX gives you an edge. It doesn't matter how small it is.

There have been a few jewels that I think have been very useful to me and I would like to share it with you. This has been useful to me so I believe it will be useful to some of you and hence the need to jott it down in ff.

1st Point -
Get SonicRPVACandle indi. Look for colored candles(red or green) and the gray(light gray/dark gray) candle following the colored candle. If the following gray colored candle closes down then the next candle(third candle) will close down with high probability.

2nd Point -
Volume analysis should always be done at Support and Resistance.

3rd Point -
Look at 500/1000 numbers, price consolidates around these numbers. These numbers are the center of gravity for price.

4th Point -
If price breaks through the high of previous daily candle then the trade bias for the day is long. Vice versa for Shorts.

5th Point -
At day open level price always fluff around.

6th Point -
Use ADX to gauge the strength of trend.

7th Point -
Always keep ADR in mind. If the price has traveled the ADR for today then do not open trade on extremes.


Volume analysis, ADR, ADX at Support/Resistance can help gain a lot of pips. These should not be traded alone and be a part of an already existing trading strategy.

I would like you to try these points analyse them and let me know what do you see?

Cheers,
Ravs

Hello looks nice. What is fuff?

Hi,

Thank you very much for your advise. One question: could you please show example and explain a bit more point one? About pva candles?

Thank you very much

Hi Oddbjorg,

well I meant to say that the price tends to stay at the open price level. It does not have a clear direction. Even if it is in a trend then it stops at daily open and takes a breather before continuing.

Hi Kleybenny,

Please find an image explaining this below. Volume should always be taken as a supporting evidence to a main strategy.

The reason behind my first point
"Get SonicRPVACandle indi. Look for colored candles(red or green) and the gray(light gray/dark gray) candle following the colored candle. If the following gray colored candle closes down then the next candle(third candle) will close down with high probability."
is:
Red/Green/Blue/Purple colored candles show critical volume. Which is treated as the volume where Market makers or big investors are executing trades. They do it in small bursts. Sometimes they will move the price just to see the market sentiment and other times they really want to move the price in that direction. For ex - They want to move the price up. So the Green candle will be full bodied and long in range. This will also be followed up by more critical volume price action in long direction.
- They want to move the price down. Vice versa of above.
- They want to gauge market sentiment. This generally will be a green/red candle followed by low volume candles.

Generally with Green/Red candles if the range(body of candle) of the candle is above average then the MMs are trying to move the price in that direction. If the range of the Green/Red candle is below average then the MMs are actually trying to go in the opposite direction.

Always remember if you are going to do volume analysis then do it at Support and Resistance.

There is a lot to explain behind the theories and what actually works in the market regarding volume and it might take some time for me to fully explain and for you to understand. So if you have any specific questions then I will answer those.

Cheers,
Ravs