Attached Image (click to enlarge)
PVSRA (Price, Volume, S&R Analysis)
- #5,262
- Jan 12, 2017 9:02pm Jan 12, 2017 9:02pm
- Joined Jul 2011 | Status: Trader | 1,521 Posts
{quote} I believe tah or Cigarguy mentioned this setup: "Hustling the hustler...? And this can change and cause the MMs to do more of what they have been doing, i.e., create a higher "top" or a lower "bottom". Which is why we must always repeat to ourselves that we cannot know how the MMs will move price next. And this is why we need to look for both PVSRA clues as to bulls or bears, and clues that PA is yielding to that bullish or bearish direction with signs of momentum. Signs of momentum can be from increasing volume as price moves away from...
- #5,265
- Edited 9:45pm Jan 12, 2017 9:34pm | Edited 9:45pm
- Joined Jul 2011 | Status: Trader | 1,521 Posts
- #5,275
- Edited 9:40am Jan 18, 2017 7:17am | Edited 9:40am
{quote} Hi Chris ! You ask very interesting quations.... a) Yes, volatility will increase definitely b) Probably, but I don't think so.... we have put attention on the size of the volume bar and the size of the corresponding candles.it's will tells us "what is going on" C) DECREASE YOUR"S TRADING VOLUME AND CLOSE POSITIONS ON WEEKEND.
I would like to show something to you all that might be interesting. You can test it and tell us about your success.
The pair is USDCHF M15. Sorry for the cut part.
My observation focusses on potential reversal. In this case we talk about a reversal from a bearish trend. H4 and H1 trends are up in this case, altough H1 trend turned to be down because of this strong trend on M15. So the higher TF Trends are against this strong M15 trend.
I highlighted an area at the very bottom. The PA that gives a potential signal (reversal of baerish trend) is the following: We need a baerish bar, whose high-to-low spread is about the average spread of each bar during this M15 trend. The trend should be somewhat smooth. Retracement are ok, but avoid trends that purely consist of retracements. This bar favourably (let's call it A) marks a new low of this trend or very close to a previous low in this trend. If the market starts to range and marks a baerish bar marks a new low or close to a previous low, I would not count this bar be part of the trend, but rather of the followed ranging phase. How ever this bar "A" is followed by two bullish bars. These two bars (let's call them B and C) can engulf this bar together, however they they need to be significantly smaller in spread. So they can get to higher levels than the high of bar A. However, if bar A's spread is immense, be careful. I did not test that case. I just saw a pattern of baerish average bars at the bottom followed by two small bullish bars. Unfortunately the spread of B and C is a little high, but they have small bodies.
These bullish bars should be lower in volume. The SL is of course the last low and the TP is the dragon trend line. Also I don't know, if higher TF trend affect these trades.
Conclusion:
- Bear candle at the end of bear trend
- bear candle marks new low of this trend
- TF is M15
- bear candle followed by two bull candles
- bear candle high-to-low spread should be as big as the average spread of the candles of this trend
- bull candles spread should be small
- bear candle should have higher volume than bull candles
- SL is last low
- TP is dragon trend line (mid or lower line)
for bullish trend, just reverse it. It can be the top of a wave on so indicate a small retracement or the top of the trend and so indicate a reversal and trend in the other direction or a consolidation phase, where at least the trend line will be touched. If the last is the case, you can a high chance-to-risk ratio.
If you like, test it and let us know.
May the Pip be with you.
