A different way of interpreting volume - Traders Hideout | futures io social day trading
futures io futures trading


A different way of interpreting volume
Updated: Views / Replies:2,101 / 4
Created: by Grantx Attachments:3

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 100,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

A different way of interpreting volume

  #1 (permalink)
Legendary Guesser
Reading UK
 
Trading Experience: None
Platform: Prorealtime
Broker/Data: Interactive Brokers
Favorite Futures: My 3 boys
 
Grantx's Avatar
 
Posts: 1,578 since Oct 2016
Thanks: 2,176 given, 4,081 received

A different way of interpreting volume

Yesterday I was watching the DOM as CL reached the 48 mark and noticed heavy absorption as Bids tried to break the level. This came after a relatively strong up move after a day of indecision.

@silver99 saw the same thing but from a completely different perspective. He entered a trade based on similar analysis so I asked him what he had seen to take a particular trade and his response was:


Quoting 
I wanted a volume spike into 48.07 area which didn't occur. I had a resting short @ 48.15 and when I saw the volume spike @ 11:48 top out at .00 and die, I dropped in the limit @ .99 and was filled on 3 short.

silver uses the volume indicator which paints a bar indicating the volume of trades per candle as in the following image:

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).



I decided to load that indicator and compare it to what I was seeing on the DOM (same time and place approx 17:47 06 June 2017):

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


The disadvantage on the chart (as I see it) is that you would have to wait for bar close to make a determination whereas the DOM allowed a much more proactive opportunity. Unfortunately I didnít save the DOM window but it was classic absorption.

The advantage of chart volume is that it is a lot easier to simply compare the volume with candle movement and decide on a course of action. Its a black and white approach Ė bids smashing into offers, price not moving at significant level, scalp a short.

Its interesting to note how others interpret data. Im not a fan of lagging indicators but that doesn't mean they cannot provide valuable information provided they are used properly.

Im interested to hear how you use volume.

Visit my futures io Trade Journal Reply With Quote
The following 3 users say Thank You to Grantx for this post:
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Super Moderator
London UK
 
Trading Experience: Beginner
Platform: CQG
Broker/Data: S5
Favorite Futures: Futures
 
xplorer's Avatar
 
Posts: 4,814 since Sep 2015
Thanks: 11,852 given, 10,506 received



Grantx View Post
The disadvantage on the chart (as I see it) is that you would have to wait for bar close to make a determination whereas the DOM allowed a much more proactive opportunity. Unfortunately I didnít save the DOM window but it was classic absorption.

Hey Grantx

Could you elaborate on the above?

Reply With Quote
The following user says Thank You to xplorer for this post:
 
  #4 (permalink)
Legendary Guesser
Reading UK
 
Trading Experience: None
Platform: Prorealtime
Broker/Data: Interactive Brokers
Favorite Futures: My 3 boys
 
Grantx's Avatar
 
Posts: 1,578 since Oct 2016
Thanks: 2,176 given, 4,081 received


xplorer View Post
Hey Grantx

Could you elaborate on the above?

Id be glad to xplorer.

In the 1 minute chart below, there was a 3000 volume bar right on the candle that hit the 48 mark (marked A).
Everything there would put me off shorting that level for the following reasons:
1. Strong preceding uptrend coming into this level
2. 3x positive candle bars with a corresponding positive volume bar below. This would make me extremely hesitant to short. (if you disregard that this is a roundnumber level and normally can expect some sort of counter move)

So the candle hits but does not break 48 and closes on high volume. Its only when I see the very next candle (marked B) and volume bar that I know there has been absorption. It took those 2 candles to determine that the level was holding.

I was watching the ladder and absorption leading into that level was clearly evident. This would have alerted me to the fact a lot earlier and would have allowed an aggressive short entry. The confirmation being that the level was soaking up huge orders. On the chart you cannot tell until after the fact.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

Visit my futures io Trade Journal Reply With Quote
The following 2 users say Thank You to Grantx for this post:
 
  #5 (permalink)
Super Moderator
London UK
 
Trading Experience: Beginner
Platform: CQG
Broker/Data: S5
Favorite Futures: Futures
 
xplorer's Avatar
 
Posts: 4,814 since Sep 2015
Thanks: 11,852 given, 10,506 received


Grantx View Post
Id be glad to xplorer.

In the 1 minute chart below, there was a 3000 volume bar right on the candle that hit the 48 mark (marked A).
Everything there would put me off shorting that level for the following reasons:
1. Strong preceding uptrend coming into this level
2. 3x positive candle bars with a corresponding positive volume bar below. This would make me extremely hesitant to short. (if you disregard that this is a roundnumber level and normally can expect some sort of counter move)

So the candle hits but does not break 48 and closes on high volume. Its only when I see the very next candle (marked B) and volume bar that I know there has been absorption. It took those 2 candles to determine that the level was holding.

I was watching the ladder and absorption leading into that level was clearly evident. This would have alerted me to the fact a lot earlier and would have allowed an aggressive short entry. The confirmation being that the level was soaking up huge orders. On the chart you cannot tell until after the fact.


Thanks, I now see what you mean.

As for your observations (Strong preceding uptrend, 3x positive candles, high volume) I understand why you'd be hesitant. I suppose the question is: how much conviction do the bulls have to break that level, and who is playing at that time?

I know you look at the DOM. My take is, as you said, certain things can be seen more clearly with one system over th other. I think absorption is easier seen on the DOM.

Reply With Quote
The following user says Thank You to xplorer for this post:

Reply



futures io > > > A different way of interpreting volume

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)
 

futures io is celebrating 10-years w/ over $18,000 in prizes!

Right now
 

$1,000 in Amazon Gift Cards being given away right now from GFF Brokers

Right now
 

$250 Amazon Gift Cards with our "Thanks Contest" challenge!

Right now
 

Show us your trading desks and win over $5,000 in prizes w/Jigsaw Trading

August
 

Webinar: Suri Duddella (TBA)

Elite only
 

Webinar: Richard Bailey (TBA)

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
TOS Convert to TS - Chart Labels - Daily Volume/Period Volume and Bid/Ask trendfriendpa The Elite Circle 1 November 1st, 2015 03:30 PM
ask/bid volume difference on diagonal dominant side in volume ladder Czechmade Sierra Chart 2 May 27th, 2015 12:30 PM
Help Interpreting a Line of NT Code BTR411 NinjaTrader Programming 8 January 21st, 2015 08:48 PM
Possible Volume Delta, CD, Volume Profile in NT8, vs MC8.5 ilikeread NinjaTrader 9 April 2nd, 2013 01:54 PM
interpreting cumulative delta MarpleTrading Traders Hideout 4 December 18th, 2012 03:56 PM


All times are GMT -4. The time now is 07:36 AM. (this page content is cached, log in for real-time version)

Copyright © 2019 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts