Volume Strategy Idea I want show how to combine three of my scripts to derive trading signals. I am going to build this into a coherent Indicator, so any feedback while I am developing is appreciated.
You want to see VAMA defining the trend direction. Then you look to enter on the bars where the Volume Flow Indicator is issueing an New Signal (Dark Green or Dark Red), and Volume Bars showing a significant or massive volume event. These two signals must happen at the same bar and in the direction of the trend defined by the VAMA to confirm a signal.
Im working on this script as I write this and you will find it in my script library soon. I will call the Indicator "Volume Runner". Enjoy.
Volumeflow
BTC Bullish Crossover in Buy/Sell PressureThis Volume Flow indicator shows both in flow and out flow volume . In June, at the current bottom, you can see sell pressure peaked dramatically, and has since waned. Buy pressure, conversely, and gained momentum. They finally crossed over on the weekly. In my previous idea I point out how this same, particular Volume Flow indicator signaled the end of the 2018 bear, and has generally crossed over at huge swings in momentum. This is very speculative of course, but it will be very interesting to see if it actually reversers momentum.
Volume Flow Potential Bottom IndicatorIs Volume Flow indicating $17.8 is the bottom? I was looking at different indicators today and found something very interesting on a volume flow indicator...
It shows the negative volume dipping sharply since the recent bottom at 17.8k, and conversely positive volume has been rising. They may intersect very soon. I got curious and looked at what happened in 2018 on the Volume Flow indicator and you can see a very similar scenario played out. The lines crossed over a little bit after the market bottom was in... This makes sense as people take a little while to be confident that the bottom is actually in. And again, we are about to see these two lines potentially cross. What's also interesting is that the length of time from the actual bottom and when the volume flow lines crossed, is about the same length of time between our recent bottom, and the projected date of the lines crossing.
Make of it what you will, this is a highly speculative idea. I just find this potentially compelling for a bull perspective. Of course the lines haven't actually crossed yet but it appears they likely will.
BTC and Volume Flow ! Hi guys,
wish y'all have a profitable life.
📌 I have checked the Volume Flow indicator today and the re-tests of certain support and resistance zones were just accurate and interesting for me.
📌 I can compare the present situation with the same in the past. The volume indicator support zone is an important and not an easy support to break, yet unbreakable!
📌 Based on what happened in the past we can decide what will happen in the future.
📍 I can see some reasonable and clear signs of bullish reversal in BTC. However, I myself wait more for further confirmations.
THIS IS NOT A FINANCIAL ADVICE
Ask me if you have got any problem and or questions.
Witnessing a bubble created by people's unrealistic expectationsA lot of inexperienced newbie investors are piling up the market yet the reality of the economic atmosphere is not robust at all. A lot of companies are filing for bankruptcy, consumption, production, and employment are extremely low (and not expected to recover fast). As small, inexperienced investors are rushing into the market, the big institutions are more aware and cautious of what is happening at the moment. The prices are at an unsustainable level and we are living a bubble that is created by people's unrealistic positive expectations.
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Billionaire investor Stanley Druckenmiller says the stock market's risk-reward is the worst he's ever seen — and downplays the Fed's ability to rescue the economy
He also worries that a V-shaped recovery from the coronavirus pandemic is "a fantasy."
markets.businessinsider.com
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Young investors pile into stocks, seeing ‘generational-buying moment’ instead of risk
The major online brokers — Charles Schwab, TD Ameritrade, Etrade and Robinhood — saw new accounts grow as much as 170% in the first quarter, when stocks experienced the fastest bear market and the worst first quarter in history.
“Traders here are ‘buying the dip’ in a lot of names with questionable fundamentals now, i.e. airlines, highly volatile stocks, low in recent price momentum, and ones with that have recently (in the last 3 months) had lottery ticket like upside payoffs occur,” added Krause. “Robinhood investors are making all the classic mistakes in the short term. May work for today’s market, but not in the long-run if repeated.”
www.cnbc.com
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Besides what's mentioned above additional factors like the possibility for a second wave of infections, U.S.–China tensions, and many more are currently being bypassed by the market.
DJI end of the upwards momentum & signals for an explosive move!Squeeze Momentum Indicator implies that the upwards retracement after the bottoms has come to an end. However, it has not given a clear signal of the direction of the next momentum in the market. By combining this information with the Volume Flow Indicator (VFI) we can see that the upwards trend is really losing its vitality. Besides this the occurring negative divergence with the price gives a bearish signal that may signal a major negative price move.
However, you should notice:
Divergence isn't to be relied on exclusively, as it doesn't provide timely trade signals. Divergence can last a long time without a price reversal occurring.
About the Squeeze Momentum Indicator
This is a derivative of John Carter's "TTM Squeeze" volatility indicator, as discussed in his book "Mastering the Trade" (chapter 11).
Black crosses on the midline show that the market just entered a squeeze ( Bollinger Bands are with in Keltner Channel). This signifies low volatility, market preparing itself for an explosive move (up or down). Gray crosses signify "Squeeze release".
About the Volume Flow Indicator (VFI)
VFI, introduced by Markos Katsanos, is based on the popular On Balance Volume (OBV) but with three very important modifications:
Unlike the OBV, indicator values are no longer meaningless. Positive readings are bullish and negative bearish.
The calculation is based on the day's median (typical price) instead of the closing price.
A volatility threshold takes into account minimal price changes and another threshold eliminates excessive volume.
Using the Volume Flow Indicator (VFI) to trade like a proOne of the hardest things to do when you're new to trading, and even when you've been in it for a while, is to figure out when to buy and when to sell to maximize profit. I'm sure there have been many times when you've sold too early, or bought in too early, and vice versa. What a waste!
Now I'd be lying if I told you there is any sure way to tell the best time to buy/sell, but indicators can definitely help, especially when you're not very experienced. One of my new favourites is the the Volume Flow Indicator (VFI) by LazyBear. I'm not going to explain to you what it is or how it works; you can read that at the link provided at the bottom of this post.
But I'll show you an example of how I used it based on the author's suggestion. According to the author, typically a reading above the zero line puts you in bullish territory, and one below the zero line in bearish territory. But as you can see, it might be a bit late if you wait for that. So what you can do instead is look at divergence on the VFI as an indicator of trend reversal. Divergence is basically a higher low near the bottom (yellow lines shown above), or a lower high near the top (blue lines shown above).
As you can see, it's a pretty good indicator of trend reversal. I'll be using it a lot more going forward. One thing to note is that I'm using a 4 hour chart here. You may get better results on a daily chart, or 1 hour chart, depending on the coin/stock in question, so do experiment a bit on a per coin/stock basis to see what back-tests the best in that particular case. Another tip from the author is to use a Coefficient of 0.2 for day trading, and 0.1 for intraday trading, which you can change by clicking the gear/settings icon on the VFI toolbar (I'm using 0.2 here).
If you think this tutorial is absolutely amazing, and will help you be the best trader you can be, please smash the like button and give me a follow, because I'll be writing a lot more of these, and you'll be notified if you follow me.
Do you agree or disagree with me? Do you have any feedback? Let me know in the comments.
Disclaimer
No Investment Advice Provided
Any opinions, chats, messages, news, research, analyses, prices, or other information contained in this Post/Idea or in connection with it are provided as general market information for educational and entertainment purposes only, and do not constitute investment advice. This Post/Idea should not be relied upon as a substitute for extensive independent market research before making your actual trading decisions. Opinions, market data, recommendations or any other content is subject to change at any time without notice. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
I do not recommend the use of technical analysis as a sole means of trading decisions. I do not recommend making hurried trading decisions. You should always understand that PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
GN (GBP/NZD) Volume, Vwap, & VFI Setup BXY ZXY
Volume, Vwap, VFI Setup a very simple profitable setup only using 2 indicators (Volume Weighted Average Price & Volume Flow Indicator) as everytime the vwap in candlestick/bars and vfi crosses in the chart it's a sign of a huge move or trend reversal as you can see in the chart. This GB (GBP/NZD) setup in 2hr tf could have made you +500 pips in only 2 days swing trading! Motto: Keep it Simple!