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How to use volume in your trading
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How to use volume in your trading

  #201 (permalink)
Trade with the flow
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I updated the VolumePatterns indicator to add an alert for HVC. It works for tick charts only, I don't have time to do minute charts I'll do it next week. It alerts after 75% of the ticks have passed and then again at the bar completion.

Volume Patterns v0.2 (ignore the version in the filename it's incorrect)

Here's a wav file for it. Put it in the NT sounds directory.

Let me know how it works for you. I use it to get my attention because I use HVC to alert me to possible reversals which I use (along with other criteria) for entering or exiting a trade. For example if I have a nice profit I'll tighten stops after an HVC bar..

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Register to download File Type: rar HVC.rar (11.5 KB, 142 views)
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  #202 (permalink)
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Thanks Cunparis for the download update. BTW, I am really looking forward to using a volume pattern paintbar by itself without the histogram. Also, the wav file leads me to believe that you aren't watching low volume patterns anymore. Is this true? Thanks.

Chris

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  #203 (permalink)
Trade with the flow
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Dragon View Post
Thanks Cunparis for the download update. BTW, I am really looking forward to using a volume pattern paintbar by itself without the histogram. Also, the wav file leads me to believe that you aren't watching low volume patterns anymore. Is this true? Thanks.

Chris

Hey Dragon, I'm sorry I forgot about the paintbar without the volume panel. To get around this I'll have to make a new indicator that doesn't draw the volume. I tried putting it in panel one with autoscale = false as previously suggested but that didn't work. I'll try to do it this week.

One thing I do is I resize the panel with the volume bars to be as small as possible. So it doesn't take up much space. And as I've said in the thread, the HVC doesn't catch everything so it's not a bad idea to have volume bars. But that said, it's good to have simple charts so if you don't need them then best to remove them.

I still look at LV but now that you mention it, not as much as HVC. LV is good for example on fading the LVPB and some other patterns. But my train trading is breakout of S/R & reversals. Reversals are more HVC and on the breakout I don't want to see LV on the breakout. If there is a LVPB after the breakout that can make a low-risk entry.

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  #204 (permalink)
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I've found an example of a volume indicator that I would love to understand more.

There are lots of posts on Traders Lab about it but they seem to want to keep it private. (I'm not criticizing them just my comment).
Here is a quote from that site:
"intensity indicator"
"This indicator detects trade that is of such characteristics that it can only be done by commercial traders"

Seems as if this indicator measures 'intense' volume on a chart. I think similar to the Volume Spike indicator or Cory's VolumeStop indicator.

It measures volume in a way that may not be possible in NT because of the data feed limitations.

I've always thought that volume leads price and this type of indicator would give us a head's up of that condition.

Anyone have any idea how to produce this?

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  #205 (permalink)
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DavidHP View Post
I've found an example of a volume indicator that I would love to understand more.

There are lots of posts on Traders Lab about it but they seem to want to keep it private. (I'm not criticizing them just my comment).
Here is a quote from that site:
"intensity indicator"
"This indicator detects trade that is of such characteristics that it can only be done by commercial traders"

Seems as if this indicator measures 'intense' volume on a chart. I think similar to the Volume Spike indicator or Cory's VolumeStop indicator.

It measures volume in a way that may not be possible in NT because of the data feed limitations.

I've always thought that volume leads price and this type of indicator would give us a head's up of that condition.

Anyone have any idea how to produce this?

I use VolumeSpike and VolumeStop. pretty good in detecting reversals. I think far better than the ones from Emini-Watch.

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  #206 (permalink)
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DavidHP View Post
I've found an example of a volume indicator that I would love to understand more.

There are lots of posts on Traders Lab about it but they seem to want to keep it private. (I'm not criticizing them just my comment).
Here is a quote from that site:
"intensity indicator"
"This indicator detects trade that is of such characteristics that it can only be done by commercial traders"

Seems as if this indicator measures 'intense' volume on a chart. I think similar to the Volume Spike indicator or Cory's VolumeStop indicator.

It measures volume in a way that may not be possible in NT because of the data feed limitations.

I've always thought that volume leads price and this type of indicator would give us a head's up of that condition.

Anyone have any idea how to produce this?

Maybe using the "duration", the time elasped between N ticks during X minutes with more than Y volume ?

I'm not using a lot volume indicators, for futures contracts, I'll try to explain why.
Let's say I'm a big guy.
I can play with 5000 ES cars.
I'm not speculating, I don't care if the ES is going up or down, I'm just here to hedge the huge stocks portfolios I'm managing for my institutional customers.
I just want to be delta neutral, that's it.
So, when I (in fact my bots) have to buy/sell my futures contracts, to keep my portfolios in a delta neutral position, do you want everybody being able to see it (hey !!! Mr X is hedging, now, let's use this information !!!) ?
Hell no, that will be very bad for me !
So, what am I doing ? Selling 1K ES MKT ?
No, I'm splitting my 1k orders in small orders, using VWAP, and sell/buy them as fast as possible.
So, no big volume then. Just more ticks/seconds for this "hedge point". But this point is important, and means something.
In fact, if 10 big Mr X do the something at the same time/price.

Try to google "A Smooth Transition Autoregressive Conditional Duration Model" and/or "Autoregressive Conditional Duration: A New Model for Irregularly Spaced Transaction Data", you'll maybe have another point of view, and maybe something smarter than just volumes indicators.

I'm not working on this for a long time, so I'm maybe wrong, but I like the idea...

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  #207 (permalink)
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One way to use Volume....

I use volume only as it pertains to the signals that fire from the VolumeStop indicator. What I like to do when one fires on my 3 minute or 10 Range Chart is to then turn to the 55 or 89 tick chart and look for confirmation signs.

EXAMPLE: After a LONG Trigger has fired on the VolumeStop indicator placed on my 3 minute chart, I then turn to watch for a series of Red Hieken-Ashi's on my tick chart. If the next series of Red HA's fail to make a "Lower Low" before turning back up and changing over to a Green HA then to me that is a valid long signal.
Check the image attached for an example that occured today.

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Ofcourse just the opposite scenario is true for a SHORT Trigger. Nothing is 100% but this is just one way to possibly filter out the fake outs or failed signals that fire throughout the day.

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  #208 (permalink)
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sam028 View Post
Maybe using the "duration",
the time elasped between N ticks during X minutes with more than Y volume ?

I'm not working on this for a long time, so I'm maybe wrong, but I like the idea...



HJay View Post
I use volume only as it pertains to the signals that fire from the VolumeStop indicator.
What I like to do when one fires on my 3 minute or 10 Range Chart
is to then turn to the 55 or 89 tick chart and look for confirmation signs.


Thanks for the replies.

I'm always amazed at the wisdom I receive from futures.io (formerly BMT) traders.

sam028, I agree that large traders try to disguise their trades.
From watching the charts for years, I see things that can only be explained by volume leading price.

I'm going to check out the concepts you posted they sound really interesting. Tks.

HJay, I really like the way you use multiple time frames for trading.
So many traders over-look the importance of the MTF charts.

Rejoice in the Thunderstorms of Life . . .
Knowing it's not about Clouds or Wind. . .
But Learning to Dance in the Rain ! ! !
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  #209 (permalink)
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hi all,have been following for awhile, does anyone market any of the systems as a package.a lot of you here are far to technical for me but i understand the effect of volume.

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  #210 (permalink)
Trade with the flow
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Silvester17 View Post
I use VolumeSpike and VolumeStop. pretty good in detecting reversals. I think far better than the ones from Emini-Watch.

Can you post some charts and explain how you use them?

Thanks

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