A robust method will work in any market any timeframe.
I use volume & cycles for ES on 500 tick chart all the way up to daily chart. I often take swing trades that last 1-5 days. It works for me but I've been trading that way for 9+ months now. It takes a long time to get good at it, just like anything else. If one tries something for a few days or a week and then tries something else I don't think they'll find success. Have to work hard at it, it takes a while.
Traders have been locked up in a narrow trading range.
If the Market-Makers (MM) believe in a bullish market, they will not want these traders to sell! So they will mark up the price trough the resistance areas.
We know they backed up the move because volume has increased substancially (not just plain old regular traders volume, shown in green).
The following low volume that is accompained by blue price bars (price getting higher on low volume) show that the move is fadding, and eventually we see smart money exiting the market.
The price keeps going higher on the next few days tough....
Andrew! ill send it to you as soon as i get home! im on my laptop right now lol
Nice pic, but are you sure that on "small" volume "smart money" actually exiting market ?
Why that after that gone higher ?
I remember 1 brilliant phrase, don't remember who said that, seems one of LBR friends :
when you are exiting market "smart money" enter and vice verse
That's why at my opinion often we see huge volume on "reverse" bars and then tiny volume on consequent "already reversed" bars and think oh all just exited market and it's on tiny volume moves somewhere
I already asked myself one "stupid" question : ok if anybody exiting market why it reverses ?
Who is buying tops and lows just stupid retailers ? Well in that case seems we are great power who is stops and reverse market, so we make market, not pro ?
I also heard that pro use "low volume areas" to drive market further in direction they need.
I'm not claiming I'm right, I'm studying "raw volume" and it's correlation and divergence to price, it already shown some fruity details, I like them, because they simple and could allow to "see the market"
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Nice mark ups on the chart there . I cant tell if some of the big volume bars are the NY open and close but thers no hiding increases and the aftermath of it . Tom williams and his book are critical reading for understanding the underlying nature of all financial markets . The big dog eats the little dog and thats how they get bigger . The institutional trader is well aware of how human nature works and how its inherent in all traders , especially the small guys . Example - the big guy wants to get long , he knows the little guys are waiting to buy at support because he can see their orders , big guy keeps selling into support and stopping out all the little guys longs and fueling his profits with the covering , he absorbed the supply and gets in long when its nice and cheap . You can see it happen over and over again and they do it when we least expect it . Pull up a chart for thanksgiving day ( US ) youll see what Im talking about .
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Magenta or Cyan if Magenta, sorry, but I disagree with you about that particular point
It not means that I argue with you or going to disagree forever
Who moved market back ? Again we retailers ? Is it time to charge pro for commission for our service ?
Seems I again agree with you
+ big money knows exactly when they will enter market and in what direction market will go after that.
Have you tried to do thing I've done in post # 85 in Fredy's thread ?
Buddies I'm just about that "raw" volume