Volume analysis – The Key to the Truth

Petar Jacimovic

Active member
195 1
Hello everyone,
I opened this thread for Volume price action analysis. I am a full-time trader for more than 7 years and in my analysis, I am using volume and price action. I combine Volume spread analysis, Wyckoff analysis and pure price action to create a smart view and try to follow the smart money.

Feel free to post your opinions and forecast the market >

Happy Trading :)
 

Petar Jacimovic

Active member
195 1
Hello traders,
I saw major weakness today on EUR/USD at the price of 1.1615. I marked letters on chart >

a - Buying climax (a major sign of weakness today). A wide range of the bar closing on the middle. It must be that sellers stepped in.

b - Another sign of weakness. Bar closed near to bottom in a high volume. This was a very first bar after climax, which is a sign that buyers don't have power for the higher price.

c - No demand bar. The narrow spread of the bar finished in the middle. This is the final confirmation that selling looks safe.

I already secured a position on BE.

Targeting 1.1520 at least.

If you like analysis feel free to comment >
 

Attachments

Petar Jacimovic

Active member
195 1
Hello traders,
I saw major weakness today on EUR/USD at the price of 1.1615. I marked letters on chart >

a - Buying climax (a major sign of weakness today). A wide range of the bar closing on the middle. It must be that sellers stepped in.

b - Another sign of weakness. Bar closed near to bottom in a high volume. This was a very first bar after climax, which is a sign that buyers don't have power for the higher price.

c - No demand bar. The narrow spread of the bar finished in the middle. This is the final confirmation that selling looks safe.

I already secured a position on BE.

Targeting 1.1520 at least.

If you like analysis feel free to comment >
Good progress far on EUR/USD I am in plus about 60 pips or 1:2 RRR. Very simple and effective setup from today based on pure price action and volume analysis.
My final target is set at the price of 1.1470 but will watch price action and close manually if is needed. Waiting tomorrow for new opportunities.

Best Regards,
Petar
 

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Petar Jacimovic

Active member
195 1
How are you able to have accurate volume for forex pairs ?
Hello there,
You can use any broker to read tick volume on the Forex. The important factor is spread of the bar and also a volume on the futures market. Since I combine tick volume on Forex with futures market volume (number od shares traded) on the currency pair I observe. Basically I am doing Intermarket analysis everytime I try to find potential position.

Best Regards,
Petar
 

Petar Jacimovic

Active member
195 1
Good progress far on EUR/USD I am in plus about 60 pips or 1:2 RRR. Very simple and effective setup from today based on pure price action and volume analysis.
My final target is set at the price of 1.1470 but will watch price action and close manually if is needed. Waiting tomorrow for new opportunities.

Best Regards,
Petar
Closed EUR/USD position +85 pips or 1:3RRR :cool:
I am waiting for ADP Non-Farm Employment Change in a few hours to find potential new opportunities.
 

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Petar Jacimovic

Active member
195 1
Hello traders,
I bought EUR/USD at the price of 1.1500. I found strong shakeout in an ultra high volume from the 1.1465. According to the 1H timeframe, there is wide spread bar with ultra high volume but the bar closed in the middle. This must be that buyers took control from sellers. The support cluster got confirmed, which is also another strong sign that we may expect further higher price.

Tp around 1.1610.

Best Regards,
Petar
 

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Petar Jacimovic

Active member
195 1
News creates good opportunities for smart traders. I took today 100 pips (1:3RRR) after the Non-Farm Employment Change. Reading volume and price action smart money cant hide their actions :)

Best Regards,
Petar
 

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Petar Jacimovic

Active member
195 1
i think volume is over rated.
Hello James,
Volume is a vital part of professional trading. On the Forex, we got tick volume (very decent indicator to read activity) but I combine futures market volume, which is centralized. Its all about liquidity.

Most traders trying to trade any type of market but that is gambling basically. If you trade on low liquidity, you can go into market makers trap. They searching for low liquidity markets to manipulate crowd. Smart traders trade on high liquidity reading price action and volume,

Best Regards,
Petar
 

jjames69

Member
52 3
Hello James,
Volume is a vital part of professional trading. On the Forex, we got tick volume (very decent indicator to read activity) but I combine futures market volume, which is centralized. Its all about liquidity.

Most traders trying to trade any type of market but that is gambling basically. If you trade on low liquidity, you can go into market makers trap. They searching for low liquidity markets to manipulate crowd. Smart traders trade on high liquidity reading price action and volume,

Best Regards,
Petar
i am basically a daytrader and trade the qqq's and e mini's. i find volume can be a lagging indicator much of the time, even on longer term charts, so i quit using it. i just key off classic patterns, with confirmation from a breadth indicator(tick), and take a quick glance at the major underlying stocks of the qqq's.

sorry, for not realizing this is the forex forum.
 
Last edited:

Petar Jacimovic

Active member
195 1
i am basically a daytrader and trade the qqq's and e mini's. i find volume can be a lagging indicator much of the time, even on longer term charts, so i quit using it. i just key off classic patterns, with confirmation from a breadth indicator(tick), and take a quick glance at the major underlying stocks of the qqq's.

sorry, for not realizing this is the forex forum.
Can't agree with you there.

The significance and importance of volume appears little understood by most non-professional traders.
Perhaps this is because there is very little information and limited teaching available on this vital part of
technical analysis. To use a chart without volume data is similar to buying an automobile without a
gasoline tank.

One thing there about indicators in general. They are all lagging because evething you see is the past and based on the pars. Volume is critical part in professional trading because it measure liquidity and activity. I trade successful for many years using pure price action and volume analysis. Patterns are fine on stock market but withtout volume they are usless, because you must watch for breakout of ctritical points and observe volume in creation of pattern to avoid invalid patterns.

I use Volume spread analysis and Wyckoff analysis in general. Once you master reading the volume, it is extremely powerful.

Best Regards,
Petar
 

jjames69

Member
52 3
Can't agree with you there.

The significance and importance of volume appears little understood by most non-professional traders.
Perhaps this is because there is very little information and limited teaching available on this vital part of
technical analysis. To use a chart without volume data is similar to buying an automobile without a
gasoline tank.

One thing there about indicators in general. They are all lagging because evething you see is the past and based on the pars. Volume is critical part in professional trading because it measure liquidity and activity. I trade successful for many years using pure price action and volume analysis. Patterns are fine on stock market but withtout volume they are usless, because you must watch for breakout of ctritical points and observe volume in creation of pattern to avoid invalid patterns.

I use Volume spread analysis and Wyckoff analysis in general. Once you master reading the volume, it is extremely powerful.

Best Regards,
Petar
we'll just have to agree to disagree. i've been trading for years, and have studied thousands of chart patterns at this point.

too often the expanding volume does not come until after the breakout.

aside from some trend analysis, just give me price and a breadth indicator, particularly when daytrading, since you simply don't have time for lengthy analysis.

the last thing i want to do is overanalyze, and miss trades. i'd just soon get a few wrong, and let my winners make up for it.

on the longer term charts, i spend a little more time looking at the underlying components, ie apple, msft, sox, etc.,to find confirmation.

notice the two W bottoms below and corresponding volume at breakout. you'd have missed the boat on both.

cheers

 

csc2009

Established member
633 17
Hello everyone,
I opened this thread for Volume price action analysis. I am a full-time trader for more than 7 years and in my analysis, I am using volume and price action. I combine Volume spread analysis, Wyckoff analysis and pure price action to create a smart view and try to follow the smart money.

Feel free to post your opinions and forecast the market >

Happy Trading :)
Interesting combine those two analysis together, I would love to know more about it.
 
M

member275544

0 0
we'll just have to agree to disagree. i've been trading for years, and have studied thousands of chart patterns at this point.

too often the expanding volume does not come until after the breakout.

aside from some trend analysis, just give me price and a breadth indicator, particularly when daytrading, since you simply don't have time for lengthy analysis.

the last thing i want to do is overanalyze, and miss trades. i'd just soon get a few wrong, and let my winners make up for it.

on the longer term charts, i spend a little more time looking at the underlying components, ie apple, msft, sox, etc.,to find confirmation.

notice the two W bottoms below and corresponding volume at breakout. you'd have missed the boat on both.

cheers
big difference between your chart and his...his are lovely examples of where it works. I look at the FTSE100 stocks and volume is completely irrelevant. Had I traded with volume, I wouldn't have traded at all
but then I'm sure he'll tell me how little I understand.
I'll say he doesn't understand the real world
 

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