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I couldn't have said it better. I like your thought process there. That is exactly the kind of thinking one has to do on every bar.
Good analysis here too. We may differ on how to trade breakouts. I have recently changed my opinion of how to trade breakouts. As I said in my cycles thread, I wanted a way to combine breakouts with cycles. Breakouts are great but they often have high risk (all the way down to the pullback low). Cycles are great cause you buy at the bottom and have little risk. So my current approach is that I want to be in before the breakout. And I'm learning one can do that from price & volume. I'm not sure cycles are necessary but it does help to view the market.
Can you help answer these questions from other members on NexusFi?
I had said it may be safer to wait for the breakout because on post #332 you show a trade where the entry is is after a consolidation period and then breaks out. I'm not really a fan of breakout trades because so many of them are false. I do believe that looking a volume can help to prevent "taking the bait" on a false breakout.
Thanks for the feedback. I'm glad that you feel I'm looking at things in a positive manner.
I forgot I waited for the breakout on that one. I had conflicting signals, usually HVC after a move up is pro's distributing. But at the same time we were in a pullback. So no early entry, the pullback was pretty tight.
So you meant that in this case it was better to wait and that I agree. But in general I want to be in early, even if it means being wrong once and getting in on the second try (which Brooks would call an H2, many different ways of looking at the same thing).
i think your volume analysis is pretty good. I posted another chart to analyze, two actually, in the cycles thread.
For those not participating in the cycles thread, it's a great compliment to volume. Even if you do not want to trade cycles, I think it's very useful to be able to see them.
I find it extremely complicated. But I did learn a few things that made it worthwhile. The idea of a correction having two legs and an H2/L2 trade is one example. He recommends starting with the H2/L2 EMA trade and I think one should go setup by setup and learn one at a time, starting with that one. That makes the book manageable.
I just tried it. It's interesting. It puts a bunch of shapes on my chart but I don't know what they mean other than bullish or bearish by the color. It puts banners but it's not clear to which bar they correspond.
I will keep playing with it. It doesn't use any resources with COBC = true and I don't see any reason to put it to false.
Red Square - UpThrust bar.
Blue Diamond - Reversal possible, yesterday was high volume wide spread up bar, but today we reached 10 days high with low close wide spread down bar.
Red Triangle Down - UpThrust confirmation.
Lime Square - Strength bar (either strength is showing in down trend or a supply test in up trend).
Yellow Triangle Up - An Upbar closing near High after a Test confirms strength.
Lime Diamond - Stopping volume. Normally indicates end of bearishness is nearing /OR/ No supply.
Lime Triangle Up - The previous bar saw strength coming back, This upbar confirms strength.
Blue Square - Psuedo UpThrust, A Sign of Weakness /OR/ A High Volume Up Bar closing down in a uptrend shows Distribution /OR/ No Demand.
Blue Triangle Down - A Down Bar closing down after a Pseudo Upthrust confirms weakness.
Yellow Triangle Down - High volume Downbar after an upmove on high volume indicates weakness.
Aqua Triangle Up - High volume upbar closing on the high indicates strength (in short term down trend).
Deep Pink Square - Test for supply.
Turquoise Diamond - Effort to Rise. Bullish sign.
Yellow Diamond - Effort to Fall. Bearish sign.
Was looking at the Euro, it is messing up some of my volume analytics. This is telling me a chunk of the volume is being traded on another exchange. Any insight on this Cunparis? A different contract?, perhaps a different exchange altogether?
Euro futures is a derivative market and it follows the spot forex price. I have doubts about using volume long term. Short term I think it works well for identifying intraday turning points because in order to "make" the Euro futures follow the spot forex it takes volume. But I must say I haven't thought too much about it.
Good , I was going to tell you that if you look in the code there should be a url to the website / blog of the guy who put the indi together . His sites kinda trippy and you can get some links to some indian forums and if you look around there you can find some VSA forums that are really interesting .
