Time & Price, Volume Confirms

[winner4x]

I use the volume indicator in MT4 for forex trading. Works quite well. I follow the VSA. What do u think about it?

 

[robster970]

Thank you for the insight and details.

Do you ever fade the trend following a major decline in volume?

No. Although a decline in volume indicates that few market orders want to buy/sell at those prices it does not necessarily mean it will turn.

From the screenshots posted it looks like you fade news events? Correct or not?

No - I steer clear of news unless I am already positioned going into it.

I use the volume indicator in MT4 for forex trading. Works quite well. I follow the VSA. What do u think about it?

I just look at the volume in relation to price and time. I don't have an opinion about your indicator.

 

[Marlon_JD]

Hello Robster, many thanks for taking the time and sharing your setup, much appreciated.

I trade the ES, started this year after few years forex, so have been looking into this to improve my own trading. I also looked at another thread you started with some trades using the opening swing and reversals and that has also been very useful.

Anyway, can I ask, would you have taken the trade below? Volume spike on 15.12 bar followed by price sticking 64-66 ish. I didn't, reasons for not taking were that the sell off was very large and delta was about -40 at the time, so got cold feet basically - but was also thinking 64-65 is high volume area so it might turn here?
Thanks
Marlon

 

[teflon142]

tldr

but looks like something similar to http://www.trade2win.com/boards/general-trading-chat/131344-dash-riprock-esq-serious-stuff.html

 

[Marlon_JD]

tldr

but looks like something similar to http://www.trade2win.com/boards/general-trading-chat/131344-dash-riprock-esq-serious-stuff.html

Thanks I will take a look.
And just learned what tldr means

 

[robster970]

tldr

but looks like something similar to http://www.trade2win.com/boards/general-trading-chat/131344-dash-riprock-esq-serious-stuff.html

Yes, it's not massively different - same underlying stuff going on.

Good luck.

 

[robster970]

Hello Robster, many thanks for taking the time and sharing your setup, much appreciated.

I trade the ES, started this year after few years forex, so have been looking into this to improve my own trading. I also looked at another thread you started with some trades using the opening swing and reversals and that has also been very useful.

Anyway, can I ask, would you have taken the trade below? Volume spike on 15.12 bar followed by price sticking 64-66 ish. I didn't, reasons for not taking were that the sell off was very large and delta was about -40 at the time, so got cold feet basically - but was also thinking 64-65 is high volume area so it might turn here?
Thanks
Marlon

Yes, would probably have gone for that.

 

[enigmatics]

Great thread Robster!

I trade in very similar fashion .... albeit I'm a swing trader. People following along should also read up on Buy or Sell Climaxes that Richard Wyckoff once detailed. It'll help them understand the concepts you've presented.

Once traders start viewing trade setups thru the lense of supply/demand, everything will change for them imo. It helps strip the emotional/ego aspects we so often experience.

Btw, I'm glad you brought up the time element. I'm getting closer to understanding it and your thoughts are quite similar to mine.

 

[enigmatics]

Can't really disagree - I was just trying to express the relationship of price and volume and why price sometimes moves fast without much volume in evidence and vice versa.

I've never had much success in introducing volume into the mix, although I think Rob makes a good case for it in the thread. For me, momentum is characterised by strongish directional candlesticks with relatively small pullbacks which tend become smaller as momentum gathers strength. And I don't expect those pullbacks to take very long to complete either.

Respect your opinion, but candlesticks can lie and that is why institutional money hopes you stare at them intently.

There is a "structure" behind every candle, every move, every pattern. It tells the story of supply/demand. By simply looking at candles a trader is only getting a third of the important information going on.

The ones who are able to trade successfully from price-action only have top notch risk management skills. The rest are simply flipping heads or tails and their losers commonly outsize their winners. The trades they luck out on are typically the breakout/momo variety when in fact they had no clue if sustained momentum was behind it, nor did they recognize the cycle the instrument was currently in.

Ultimately these same people compartmentalize their winners thinking they're onto something, inevitably finding themselves stuck in a vicious cycle of bias.

 

[LauraRomans]

What if trades were based off of "price and volume" rather than "price and time"?

Is time or volume more relevant?

 

[MajorMagnuM]

see volume profile vs market profile endless argument threads

 

[enigmatics]

What if trades were based off of "price and volume" rather than "price and time"?

Is time or volume more relevant?

If you're referring to Market Profile vs. Volume Profile my own personal preference is for VP.

Regardless the "time" function Robster mentioned is more akin to how "measured moves" work in trading. Even if you don't have an understanding of the time variable, it's very important you at least understand the price/volume relationship since the market is supply/demand.