Combining Price, Volume and Volatility
How to avoid BAD trades, and using the TT Price/Trend Indicator, paired with the TT Volume Indicator to make a decision on whether to take the trade or avoid.
As per the description on my indicators, you must only:
- LONG/BUY if the slow moving line on the Volume Oscillator is ABOVE the Blue trendline.
- SELL/SHORT if the slow moving line on the Volume Oscillator is ABOVE the Blue trendline.
Even better if there is a retest.
There is more information on the description of each indicator's script (please see below "Link to Related Ideas").
Quite often, Volume can pre-determine what will happen with price, so using this indicator will help increase your win rate significantly. But it's important to stick to this strategy and not FOMO in because of emotions.
I am also currently testing a new indicator, the "Volatility Direction Bands". This is in the works and will be released soon. Essentially, it's similar to Bollinger bands but adds stoch-based moving averages and a mac-d based Histogram to use as a 3rd dimension for your trades. This measures Volatility, and displays a Histogram of Volatility, which works well alongside Price + Volume. The idea is to only BUY when the moving averages are in the Red volatility bands and SELL when the moving averages are in the Green volatility bands.
About the YELLOW CIRCLE on the chart:
You can see that when this happened, the slow moving average on the Volume Oscillator dropped underneath the Blue trendline, retested upwards and dropped more.
This all happened BEFORE price dropped - price was currently above the Blue trendline in the BUY zone.
We saw this and did not set an order at the Blue trendline. Price then dropped underneath the Blue trendline on price and we waited for the next "SELL" signal to SHORT at the Blue trendline.
As per the description on my indicators, you must only:
- LONG/BUY if the slow moving line on the Volume Oscillator is ABOVE the Blue trendline.
- SELL/SHORT if the slow moving line on the Volume Oscillator is ABOVE the Blue trendline.
Even better if there is a retest.
There is more information on the description of each indicator's script (please see below "Link to Related Ideas").
Quite often, Volume can pre-determine what will happen with price, so using this indicator will help increase your win rate significantly. But it's important to stick to this strategy and not FOMO in because of emotions.
I am also currently testing a new indicator, the "Volatility Direction Bands". This is in the works and will be released soon. Essentially, it's similar to Bollinger bands but adds stoch-based moving averages and a mac-d based Histogram to use as a 3rd dimension for your trades. This measures Volatility, and displays a Histogram of Volatility, which works well alongside Price + Volume. The idea is to only BUY when the moving averages are in the Red volatility bands and SELL when the moving averages are in the Green volatility bands.
About the YELLOW CIRCLE on the chart:
You can see that when this happened, the slow moving average on the Volume Oscillator dropped underneath the Blue trendline, retested upwards and dropped more.
This all happened BEFORE price dropped - price was currently above the Blue trendline in the BUY zone.
We saw this and did not set an order at the Blue trendline. Price then dropped underneath the Blue trendline on price and we waited for the next "SELL" signal to SHORT at the Blue trendline.
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