Pair? Price? Time? & Session?- Before Entering A New Trade.Before Taking Any New Trades, Ask Yourself These Questions:
What pair? Is base currency in current session.
What price? Is current price action around round numbers? double zeros or higher are psychological numbers of banks and retailers.
*On chart I use .500, .750, .000 & .250 ending numbers which on GBP pairs are quarter levels (or 12.5 pips) zones. Total ADR on this chart is 75 pips.
What is current time? Beginning of a session (higher volume & liquidity) during London and New York sessions.
What session is set up pattern to enter a new trade? Sydney, Tokyo, London or New York session.
Higher volume? Beginning of sessions are a great time to initiate new trades, in direction of momentum and trend. Highest volume and liquidity is between London open to London close time, which is around 12 hours per day. *London overlaps Tokyo and London overlaps New York session.
High liquidity? Overlapping sessions (best) and where two major sessions are working, so double liquidity and volume at play.
Refer to noted possible five trades that could have been taken on noted 1 hour chart of GBPAUD during Fridays session. A lot of possible profit pips with the right stop losses and risk management- please trade according to your plan and strategy. For entries I use fractals, trends, momentum, volume, liquidity, fib ret reversal levels of (50% to 61.8%-golden zone), engulfing, harami and pin bar candlestick setups to enter with right pair, right price, right time and during right session. Good Luck.
Volume
April 1, 2021 - Opening Range-Initial Balance Trading the NQIn this video I will show you how I took a very common setup with the OR/IB indicators. The setup is to fade the first touch of the IB range, after the range has been set. As you can see, price rejected at the IB high and came down to tag the Overnight High (the magenta line).
This trade netted about 50 points on the NQ.
Volume and Open interest of some CME contractsLooking at the numbers helps us figure out what goals to other market participants have? Do they rollover their positions alot? How far do they project themselves?
Do they hold for months of exit after just a few days?
We can see the volume of Oil popping off when the expiry is close as traders, for example terrible ETFS, close and re-open the next month and I am suspecting much of this volume are front running algos taking advantage of these rollovers.
The S&P is looking more like a casino of short term gamblers than ever.
And the EURUSD sees much holding relative to trading, there are no day traders in FX which echoes with the BIS report showing trader's timeframe (almost all retail investors day gamble or "swing" gamble < 7 days but they represent only 5% of the FX market maybe even less).
Other notable futures: Gold with a volume of 185 thousand contracts this Monday, and open interest of 472 thousand split almost evenly between the "front" month (in practice the April contract) and June one.
10 year T Notes have an open interest of 3,780,235 contracts (378 billion usd) I think this is the second highest one.
10 year T Notes options also have an open interest of over 3.5 million.
The total volume is close to 2 million for futures & 500k for options. So about 250 billion USD.
I think the third biggest contract in usd terms is the e-mini S&P 500, with a daily volume typically around 3-3.5 million (> 500 billion usd). The contact volume is about the same it has been for years but the usd value has almost doubled from when the S&P was lurking in the depth at close to 2000 points.
Open interest for the S&P is at 3 million for futures + 500k for options, it's sitting at around the same value as the ADV.
This is the era of day traders...
The largest contract is not even close. Seriously these numbers make my head turn.
It's the Eurodollar (the future that represents the London interbank rate).
The daily volume hoovers around 2 - 2.5 million contracts (I'm guessing around 700 billion usd).
The open interest is eye popping at 25-35 million contracts (Friday it was at 11.8 million futures & 20.9 million options), it's half the GDP of China.
PB&J: Shadow-30PB&J: SHADOW-30
If you are new to trading, then start with this pattern!
It is easy to identify, easy to learn, and easy to trade.
What more could you ask for?
HOW TO TRADE THE SHADOW-30 CHART PATTERN
This can be an "everyday" pattern because of its reliability.
It is easy to spot and simple to trade.
THE SETUP
The name Shadow-30 refers to a "shadow" that slices through the "30" period exponential moving average.
This looks like a Hammer on the chart but it doesn't have to be perfect to be considered a Shadow-30.
- The color of the real body is not important.
- The shadow on the chart flushes other traders out of their position.
Note: There is nothing special about the 30 period moving average. It is just a reference.
Look to the left on the chart to determine support and resistance.
When you are trading any kind of long lower shadow or Hammer pattern, always look for volume to be higher than the previous day .
- This suggests that many traders were shaken out and demand is picking up.
- This is important!
THE ENTRY
If you are able to trade during the day then buy on the day of the Hammer near the end of the day. You do not need any kind
of "confirmation" or anything else. You only need to see that price is at a support level and that demand
is coming (volume). That is all the confirmation you need.
If you cannot trade during the day then place your buy stop above the high of this Hammer day. The next
day you'll have to check to see if your order gets filled and then place your stop loss order. You could also use a bracket order.
THE STOP LOSS ORDER
There are two options for the placement of your stop loss order. Each has advantages and disadvantages. You decide what
is right for you.
Option 1:
- Put your stop under the low of the Hammer. The advantage to this is that your stop is far away from your entry price
and you will not likely get stopped out prematurely. The disadvantage to this is that because your stop is so far away, you will
have to buy fewer shares in order to comply with your money management rules.
Option 2:
- Move down to the 1H chart and put your stop below the support area closer near the real body of the candle.
The advantage to this is that you get to buy more shares because your stop is closer to your buy price. The disadvantage to
this is that because your stop is so close, you may get stopped out more often, before a big move happens.
TAKING PROFITS
When you are trading wide range days like Hammers you will find out that many times the chart will trade sideways for a day or two. That is fine.
You are already in the trade just waiting for other traders to enter. Also, the days that follow a Hammer are typically low volatility, narrow
range days like Doji.
Be patient! Do not get anxious to move your stop up. Wait for price to actually move in your favor before you begin trailing your stop.
Once price moves in your favor, then you safely begin to trail your stop loss using your favorite exit strategy to lock in profits.
TRADING TIPS
Focus on those charts where the real body of the candle is close to the 30 EMA. You want as many traders as possible shaken out of this
before you get in.
This setup is reversed for short positions except now your are looking for charts with a Shooting Star pattern through a declining 30 EMA.
Give more weight to setups where price gaps away from the previous candle to end the day in a Hammer.
Always look to the left on the chart to make sure price is at a significant support or resistance area.
WHEN GOOD CHART PATTERNS GO BAD
Yes, you will have losing trades with this pattern.
There is no pattern that will guarantee all winning trades!
But with proper money, trade, and self management, you can do very well with this setup.
HOW TO PROPERLY TRADE WYCKOFF ON ANY TIMEFRAME W/ VOLUME!Ok guys, I've gotten many requests over the past month about how to actually trade using Wyckoff's work... I will try to simplify it the best I can.
According to Wyckoff's theory, you should "technically" ONLY get into a trade AFTER a trading range has been broken... A trading range is usually referred to by most traders as "consolidation", and it is usually written off as nothing significant... Just price doing it's wacky thing, going up and down... Which is not correct. It is actually a sign of institutions manipulating price around to see where buying and selling is from retail traders like you and me. Once they have decided where where the herd is, they move OPPOSITE of the herd in order to take as much money as they can from you. (Or at least the majority of you).
Wyckoff's work was to find a way to properly identify the signatures of where price was actually being taken by these price manipulating institutions with big enough pockets to manipulate price.
Let's start.
First and foremost, ALWAYS wait for a big move. Big sharp moves up or down will (over time) identify these trading ranges. I am using Bitcoin as an example, because it is perfectly situated right above an existing trading range. Let's take a closer look.
How the trading range retest will probably look
For now, I am going to post this, and in the updates on this idea, I will post about how to place short trades very soon so you guys can see what the opposite of accumulation looks like.
Take Advantage of Tradingview Alerts! (TUTORIAL)Many Options are available for custom tailoring your Alerts so that you can make sure you don't miss out or loose money! Quick crash Course on how to utilize these alerts on your indicators so you can keep an upper hand as you scan the markets
Auction Market Theory + Supply and Demand ETHUSDI have tried to move away from indicator based trading into more fact based TA and would like to breakdown how to use this form of analysis with just candlesticks and volume. This is a larger time frame breakdown though similar patterns can be identified (though significantly more volatility prone) in smaller time frames and one can find that these principles explain moves across many markets. What's interesting with Ethereum is the similarities to precious metals. The demand has no specified cap while the supply is limited. Using supply as a constant and demand as dependent variable paired with a basic understanding of auction market theory, each move in an asset can be analyzed. I only chose ETHUSD due to the rising buzz around cryptocurrency.
There are 3 main discussion points in this post They are numbered on the chart in order and the numbers will also be used to tie them to their principle.
1. Aggression: Who is currently more aggressive in the market? Buyer or sellers? Aggression in markets simply is the continued buying or selling at higher or lower prices respectively, causing rapid fluctuations. I try to mark the more significant areas of aggression as they often have more importance in the broader scheme of things. For ETHUSD, in 2021, we have seen tons of buyer aggression causing large breakouts, often followed by selling aggression after new highs are created. These types of moves can not be predicted, nor can we establish how long they will carry on, though after the fact they are of upmost importance. For reference, (1), (2), (4), (5), (6) are all areas of aggression I identified on this chart. To identify these I look for volume that is relatively higher than usual as this shows the increase of interaction between buyers and sellers. I then find the bias which is simple on a candle chart- red or green. Typically with larger aggressive moves there is a scenario that occurs referred to as imbalance. An imbalance is formed when buyers raise the bid or sellers lower the ask quickly creating larger fluctuations in prices. These imbalances are often POI's during a retrace.
2. Absorption: Absorption is when there is a large group of resting limit buy or sell orders that temporarily or fully halt selling or buying action. This information can be accessed in real time with level 2 data in the stock market though I'm not to sure how to identify them best real time in the cryptocurrency market as it is decentralized. Though absorption isn't dependent on aggression, it can easily be identified when there is an aggressive party in the market. First, the assumption must be made that prices with downward/upward momentum will continue in the same direction as long as the majority of the money in the market retains bull or bear bias. Theoretically, one must assume that as long as there is no worthy contest, prices will remain moving to infinity or 0. Second, the study of volume. If there is an obvious directional movement, volume is continuing to increase, and prices are unchanged as buy/sell pressure continues, then it is safe to assume that there is larger amount of limit orders than active/aggressive orders, in a nut shell that is all absorption is. Example- . What happens next is a competition of the buyers or sellers for the best possible prices and trends form in that direction until their position is fully formed, example-(COMP). Absorption areas are often referred to as support and resistance and in a consolidating market these areas are easy to identify. They often creating a mix of limit buyers/sellers along with "market" buyers/sellers resulting from the fact that both of these parties have identified these levels and they both are in agreement that it is a buy/sell zone . If these supports and resistances are broken (typically a result of aggression) those on the sidelines may see a chance to enter the market causing aggression/breakouts, for example- (5).
3. Supply and Demand- Supply and demand is essential for understanding any market and is arguably the biggest influence on price. When it comes to understanding demand in the form of Cryptos or any other asset it is not always easy to identify, as it is all relative. However, as stated earlier we know for a fact that the total supply in my example, ETHUSD, is always going to be capped. Demand on the other hand, is constantly going to be changing. One way demand can be inferred is fundamental analysis, technically if enough people were to say "to the moon" and the unspoken HODL agreement is maintained, price could rise forever as people continue to put money into the market. Another way to find demand is looking at historical price relative to historical volume, find areas where volume was low yet price still pushed higher. This occurs when enough are people are actively buying the asset but there is a majority of people intentionally holding the bag. This is a phenomenon known as a supply crunch and is exclusive to assets with capped supply. As these people continuously buy, the asset's price moves higher in search of absorption or where market participants may want to sell their holdings. As mentioned before, these can be found with time/price based volume studies that for simplicity sake I will refer to as "volume wells" (3A and 3B). More often than not these volume wells a result of ranging markets and come in different sizes depending on the longevity of the consolidation/accumulation period.
Tying it Together-
Using these three principles to breakdown markets, one can better establish an understanding of price action and envision the market as whole rather than piece by piece. Furthermore, the understanding of how buyers and seller are interacting minimizes the risk when trading. I hope this was helpful and remember, there is no right or wrong way to trade and I intend for this post to be strictly educational. Feel free to leave your thoughts or questions in the comments.
Pre-Market Top Gainer breaks to new highI often noticed that the big gainers from the opening make near the close another move up.
As always I use the 5 min bar break or bounce of the POC line as an entry, place the stop below the entry bar and trail the stop when there was an down move and and again an upmove.
I am looking forward to program or get a scanner in tradingview that sents us an alert if the price breaks above a POC line on the session volume indicator
Melvin Capital: the adventures of an infinite size short sellerYet another degenerate bites the dust.
In the markets, there is a once every 100 years 5 sigma event every few months.
Some of you may remember the James Cordier of optionsellers dot com emotional apology video, after he got wiped out by a short squeeze on Natural Gas in 2018.
I looked into it back then and this guy was an out of the money naked option seller using extreme leverage.
These people, that get wiped out, every time they are psychopaths. This time we are looking at stocks, and the guy running Melvin Capital was a madman.
This guy single-handedly shorted between 50 and 100% of Gamestop all available shares. The ADV is ~3.5MM shares which is around 5% roughly.
I do not trade stocks (I do Forex CFDS & CME commodity futures) but I know enough to know shorting all by yourself more shares in percentage than the second highest shorted stock entire short interest, that's asking for trouble. I do not know what limits one should set, as a famous stock expert would say "it depends on your personal risk tolerance", but the adv would be a good place to start maybe? 5% of float seems big but reasonable?
When he shorted CD projekt he only used 0.6% of the outstanding shares according to this article.
Funny thing: they say he did not make as much as he should have because the rate was not favorable. They know this or they are guessing?
The reckless CEO of Melvin did not bother to open an FX position to hedge? He likes to live dangerously, or maybe he was making an FX bet.
www.world-today-news.com
On this page they claim to have a list of stocks Melvin is short of: whalewisdom.com
Reddit found a troll in a very dangerous position, and so they went whale hunting.
But I think it's other institutions that took down the whale actually, and the heroic "little guy" just joined late (as usual) and is now left holding the bag.
Melvin loss was entirely the responsibility of the head manager, risk managers and whoever came up with the idea of shorting more than 50% of shares.
It's always the same story. Before getting wiped out James Cordier published (on another site) a trading idea called "option selling opportunities so good they're scary" and was persuaded he could not lose.
I bet the same happened here. Gabe Plotkin had big success (50% returns, one of the best funds), got lucky and made easy money, got excited (this is the "don't get emotional" part), went in big, and then got punished.
I doubt Gabe Plotkin and James Cordier are excited today.
I LOST 70% OF MY CAPITAL WITH THE SAME MISTAKE => OVERTRADINGHello Traders,
today I want show you a point of my live, that I constantly overlooked. I want sensitize you for it and also make me so a reminder for the future!
1. OVERTRADING
It's the truth: In the past I lost 70% of my capital with overtrading. If you find yourself there then I would be sensitize you to rethink your approach of trading.
On the chart above you can see how I take at the beginning all rules what I learned before:
Only 1% of my capital I choose for risk with using StoppLoss
Support and Resistance are STOPPLOSS and TAKEPROFIT, depence on trading direction
I choose a Takeprofit more then 2 times of my risk
=> I lost the most time with this rules
But the rules are not the problem!
The problem was my overtrading. I see only "ONE" signal to take action => then it overcomes to reaction buy, no no, sell... dame, better buy and so on => always if I was in loss I tried to rethink my trade 24/7 hours in front of the screen.
2. SUPPORT AND RESISTANCE: THE WORST ENTRY POINTS EVER, BUT GOOD STOPLOSS AND TAKEPROFIT AREAS
Another thing is, that support and resistance areas are good reverse moments. Every greedy trader like I used to be, try to catch the early trade to make more money than anyone can imagine. Then back to reality: you get stopped. The market takes your money and you don't realize why!
On this moment, you have your own opinion of the market and this your mistake to believe you are right. You hadn't wait enough!
3. BE PATIENCE - TRADE LATE AND RIGHT THEN EARLY AND WRONG (MULTIPLE)
The headline above in point 3. is since my realizing the importast rule. Trade late and right!
Because the other thing of trading you can: the right risk, the winning opportunity.
Sometimes it helps to look in deeper timeframes, to get enough win-risk-ratio.
Hopefully it helps you!
Kind regards
NXT2017
Five types of major support and resistance levelsWant to buy the bottom and sell the top? Want to predict major turning points in a security's price? Want to avoid buying too early or selling too late? Then you need to understand support and resistance levels!
I know a lot of people who mostly trade breakouts. That can be a very successful strategy, and I've used it myself to good effect. But if you buy a breakout after it happens, you pay a "breakout premium"-- especially if you're buying option calls or puts. You'll get a much better price on options if you buy them *before* a breakout or *before* a major change in momentum. How do you do that? Know your support and resistance levels!
Once you know how to identify the different types of support and resistance, you can look to see where several different types of support or resistance coincide . Those will be key price points at which different types of investors who rely on different types of indicators will all buy or sell at the same time.
BTCUSD 05 DEC 2020 (recent Wyckoff phase analysis) Schematic 2Accululation schematic 2. You can see the textbook phase development from a recent re-accumulation into mark-up
Starting on the left you can see the preliminary support/stopping volume/selling climax which is how trading ranges start. A support is established on high volume.
The Automatic rally (AR) is the initial establishment of resistance. It is important here to make note of the supply/sell pressure. If the sell pressure is high here, the market (automation) will read the market as if there are still sellers (supply). In order to minimize the amount of sellers in the market, the CO/SM may stay in this training range for hours, days, weeks... as long as it takes to get you to sell your bags.
You are dealing with automation. It does not need to eat or sleep and has one objective and ONEE OBJECTIVE only... to take your money.
Price will oscillate in this trading range -accumulating- .. buying low. Who sells low? Retail.
SM/CO BUYS LOW and SELLS HIGH.. there is no exception to this. This is a rule you must take on yourself, which is appropriate since that is the objective of professionals.
Phase B-the "supply/demand" phase.. is an area you want to avoid. During this phase you will notice price erradically moving up and down with no ryme or reason. This is a common area for retail to enter and then immediately find that price refuses to move. This can really push your tolerance and patience. This is where you start to wonder if you risked too much.... This is the market shaking out weak hands getting retail to sell their bags.
A lot more to it but a good rule of thumb is to avoid phase B entries at all cost.
Depending on the supply/demand situation you may or may not get a "spring". A spring is a fake out below support that hits high volume driving price back into the trading range. Schematic 2 does not a spring or terminal shake out
For a more thorough/academic explanation please refer to any or all of the free following:
Sources of education:
Richard Wyckoff
Tom Williams Volume spread analysis VSA/ Master the Markets
Pete Faders VSA*
Read the ticker dot com
Wyckoff analytics
Dee Nixon
Avoid buying into weakness/supply/resistance
Avoid selling into strength/demand/support
Avoid entry when price is in middle of a range (phase B)
How to use Session Volume HD to study price and volumeSession Volume HD was created to add a new level of detail and precision to studying price and volume for each session of trading. Session Volume HD dynamically adjusts to show you more data as you zoom in and out of the chart.
Think of Session Volume HD like a magnifying glass for studying volume and price. What price levels are attracting the most trading volume? How does that change as we zoom in or out of a specific trading session? With Session Volume HD , the more you zoom, the more detail you will see about price and volume for a specific trading day. It's a perfect tool for traders and investors who quickly zoom in and out and change their chart resolution.
In the example above, we are looking at two charts of Tesla both set to different timeframes and resolutions. Do you see the difference between the Volume Profiles shown on each chart? The chart on the left is a daily chart dating back to November. The chart on the right is a 65-minute chart zoomed in on only the last few days of trading. Both charts are using Session Volume HD to display a Volume Profile analysis, but each chart shows a different level of detail. That's because the Session Volume HD tool is dynamically adjusting as we zoom in or out. In other words, as the zoom increases, more volume profile levels are displayed.
As you begin to understand and use Session Volume HD , it's important to remember that the tool can be customized to your needs and observations. Open its settings to get started. Every trader and investor has their own methodology and these settings will help you create your own unique style of research:
Point of Control ( POC ) – The price level for the time period with the highest traded volume . This the red line shown on both charts within each Volume Profile region.
Up Volume - Determines the color for the Up Volume or points where buying occurred and price increased.
Down Volume - Determines the color for the Down Volume or points where selling occurred and price decreased.
Value Area Up - Determines the color for the Value Area Up or where buying occurred in a high volume zone, say 70% of all tradable volume .
Value Area Down - Determines the color for the Value Area Down or where selling occurred in a high volume zone, say 70% of all tradable volume .
Profile High – The highest reached price level during the specified time period.
Profile Low – The lowest reached price level during the specified time period.
Value Area (VA) – The range of price levels in which a specified percentage of all volume was traded during the time period. Typically, this percentage is set to 70% however it is up to the trader’s discretion.
Value Area High (VAH) – The highest price level within the value area.
Value Area Low ( VAL ) – The lowest price level within the value area.
We hope this tutorial helps you understand the power of Session Volume HD and other Volume Profile tools. More importantly, we hope it helps you understand all of the features, customizations, and functionality that come with them. Session Volume HD is one of the Volume Profile tools available to you and it's particularly helpful when zooming in and out of the chart, changing timeframes, and looking for additional detail as you study a specific session of trading.
Thanks for reading and please leave any feedback or comments below. If you want to see more Volume Profile tools or features - we want to hear about it! We just may build it for you.
How to Spot Blow-off Tops - ES1!Here are 3 blow-off tops and 1 failed attempt which all occurred in the last 7 months. Successful completions are marked in solid black. The failed attempt is shown in dotted black.
On all 4 attempts, the price accelerated upwards to different degrees. Each target can be roughly measured based on the price move.
Notice how the failed blow-off begins closer to a price bottom than the successful ones did.
Volume was either steadily increasing or declining during successful blow-offs, compared to the unsuccessful attempt when volume was not clearly trending.
ROC (momentum) was increasing with all 4 attempts. The blow-offs were successful when momentum was at 0 or positive at the start of each blow-off.
Disclaimer: This is my opinion. This is not advice. Trading involves risk.
Money Flow Index (MFI)MFI is a momentum indicator.
It measures the flow of money.
Money Flow Indicator incorporates volume. (Remember that RSI only consider the price)
You can change the preset values.
Oversold levels normally set to 20. ( Less than 20, there will be fewer signals and more than 20 you will get more false signals )
Overbought levels happen above 80. ( More than 80, there will be fewer signals and less than 80 you will get more false signals )
Divergences are also important which I will cover in another video.
Volume Indicators Masterclass Part 1VOLUME INDICATORS
Volume is one piece of information that is often neglected by many market players, especially beginners.
However, learning to interpret volume brings many advantages and could be of tremendous help when it comes to analyzing the markets. The usage of volume indicators has long been restricted to just the Forex Markets. Thereby in the Volume Indicator Masterclass, we will be looking in-depth for a few volume indicators.
Traders often use volume which measures the number of shares traded during a particular time period as a way to assess the significance of changes in a security’s price.
Traders rely on it as a key metric because it lets them know the liquidity level of an asset, and how easily they can get into or out of a position close to the current price, which can be a moving target.
Volume analysis is a technique used to determine the trades you will make by discovering the relationships between volume and prices. In order words, it shows how many times the security has been bought or sold over a given timeframe. The time frame can be one minute, four hours, one day, or anything.
The volume transacted in the given timeframe is represented as a bar, which can be color-coded. The color of the bar shows whether the security’s price closes up or down.
A green bar is generally used to show that the security closed higher during the trading session
A red bar is used to indicate that the security closed lower
The height of the bar shows whether there’s an increase or a decrease in the volume of the security transacted a taller bar shows a higher volume while a shorter bar shows a lower volume.
Trend Confirmation :
If the volume increase with an increase in price or with a decrease in price, it indicates a strong buying or selling pressure.
Trend Non-Confirmation :
If the volume decrease with an increase in price or with a decrease in price, it indicates a weak buying or selling pressure.
There are various Volume Indicators, out of which we will be discussing the Money Flow Index in this Masterclass.
Money Flow Index
The Money Flow Index (MFI) is an oscillator that uses both price and volume to measure buying and selling pressure.
The indicator is synonymous with “volume-weighted RSI” as it integrates volume and mirrors the relative strength index (RSI) with respect to its mathematical formulation and categorical classification as a momentum oscillator MFI.
Calculation of the Money Flow Index:
Typical Price: (High + Low + Close) / 3
Money Flow: Typical Price x Volume
Positive Money Flow: The Money Flow on days where the Typical Price is greater than the previous day’s Typical Price.
Negative Money Flow: The Money Flow on days where the Typical Price is less than the previous day’s Typical Price.
Money Flow Ratio: 14-Period Positive Money Flow / 14-Period Negative Money Flow
Money Flow Index: 100 Money Flow Ratio / (1 + Money Flow Ratio)
Signal Generation
BUY When Money Flow Index crosses up 20 i.e. from the oversold region
SELL When Money Flow Index crosses down 80 i.e. from the overbought region
There a lot of more interesting Volume Indicators that can be used, about which we'll be talking in the next Masterclass of Volume Indicator.
STAY TUNED!
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- Mudrex
GBPUSD high pressure versus low pressure (reference)Low pressure at resistance ; increased pressure at support and the resulting action. Think 2-3 moves ahead.
The strength of any uptrend is going to correlate to the amount of buying that took place during the last down move (in general). Buy low/sell high.
BTCUSDT candle wicks, volume expansion at supportBTC can be surreptitious in its volume. The good thing is that when you hav large volume spikes in BTC at your target it tends to play out.
Just a simple example of volume increasing as price nears support. Schematic to the right to help.
Large wick at the bottom of a candle with low volume means?
Large wick at the bottom of a candle with high volume means?
Accurate Candle/volume interpretation will make you a profitable trader. Its actually very easy.
EURUSD RSI to identify low pressure zones (reference)The volume creates a "peaks and valleys" effect. The valleys are areas of low pressure and the peaks are high pressure.
You can see here how price is drawn toward a path of least resistance (low volume) and the resulting price action depending on wether there is strength in the background or weakness.
reference.