I just took a look at it on ES 2 min chart. What I have notice:
- When two bars are back to back, often, the next move is a relatively big one
- The first bar after market is worth trading. Could be 6:32 or could be later around 6:50. Sometimes there is head fake(VolumeStop s/r broken), but if we use another price indicator such as an MA to confirm, the next move in the direction of the VolumeStop bar is a great one.
I added the volume stop to my charts (Euro & CL 9 range) and it's very interesting. I'm curious how you all are using it in your trading? I mainly trade breakouts of pullbacks and trading ranges. I see the volume stop often pinpoints the low of the pullback or trading range. I used to trade counter-trend picking off these turning points and it seems the volume stop idea could be used for counter-trend trading like this.
The following user says Thank You to cunparis for this post:
ok, looks like you want some rules, some set ups, you got it!
note in chart I added TRIX indicator twice, one to the lower panel and one to the chart to color the back ground note: auto scale set to false.
during the pink time treat all dot lines as support lines, you look for b/d and the trigger is when a bar closes below the dots. during the blue time treat all dot lines as resistant lines, look for b/o and the trigger is when a bar closes above the dots.
ps. set length = 200
The following 11 users say Thank You to cory for this post: