How to use volume in your trading - Traders Hideout | futures io social day trading
futures io futures trading


How to use volume in your trading
Updated: Views / Replies:174,575 / 677
Created: by cunparis Attachments:203

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 90,000 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
 203  
 
Thread Tools Search this Thread
 

How to use volume in your trading

  #341 (permalink)
Trade with the flow
Paris, France
 
Futures Experience: Advanced
Platform: Market Delta & Ninjatrader
Favorite Futures: ES
 
cunparis's Avatar
 
Posts: 2,563 since Jun 2009
Thanks: 1,157 given, 2,032 received


David_R View Post
I would say the LVPB is either non-professionals trying to take it lower or profit taking until the next swing up. From a price action perspective I would say there is a reversal taking place at the low of the pullback. If there was true selling volume should increase.

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.


Quoting 
As far as the earlier long trade, I would say that and earlier entry could be possible because if the prior HVC bars is professional buying, and I would say that it is, then the probability on a continued rise is good. Safer to wait on the breakout.

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.

Reply With Quote
 
  #342 (permalink)
Elite Member
San Jose, Ca
 
Futures Experience: Beginner
Platform: Ninja
Broker/Data: AMP/CQG
Favorite Futures: Something moving
 
David_R's Avatar
 
Posts: 1,510 since Nov 2009
Thanks: 2,267 given, 2,371 received


cunparis View Post
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.

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.

David

Reply With Quote
 
  #343 (permalink)
Trade with the flow
Paris, France
 
Futures Experience: Advanced
Platform: Market Delta & Ninjatrader
Favorite Futures: ES
 
cunparis's Avatar
 
Posts: 2,563 since Jun 2009
Thanks: 1,157 given, 2,032 received



David_R View Post
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.

Reply With Quote
 
  #344 (permalink)
Elite Member
San Jose, Ca
 
Futures Experience: Beginner
Platform: Ninja
Broker/Data: AMP/CQG
Favorite Futures: Something moving
 
David_R's Avatar
 
Posts: 1,510 since Nov 2009
Thanks: 2,267 given, 2,371 received

I don't recall if I've ever tried to read Brook's book, but I've seen some info on his work. I found it to be very complicated. Do you?

I will check out the cycles thread.

Reply With Quote
 
  #345 (permalink)
Trade with the flow
Paris, France
 
Futures Experience: Advanced
Platform: Market Delta & Ninjatrader
Favorite Futures: ES
 
cunparis's Avatar
 
Posts: 2,563 since Jun 2009
Thanks: 1,157 given, 2,032 received


David_R View Post
I don't recall if I've ever tried to read Brook's book, but I've seen some info on his work. I found it to be very complicated. Do you?

I will check out the cycles thread.

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.

Reply With Quote
 
  #346 (permalink)
Trade with the flow
Paris, France
 
Futures Experience: Advanced
Platform: Market Delta & Ninjatrader
Favorite Futures: ES
 
cunparis's Avatar
 
Posts: 2,563 since Jun 2009
Thanks: 1,157 given, 2,032 received


Eric j View Post
Hey Cunparis , nice trades this morning . I sent my 6E chart from today and how I marked it up , all based on volume . Missed a couple entries cause of no fills on limit orders . Its sim and the 3rd day ever looking at 6E - I like it so far . I forwarded an indicator I found on the NT forum and its a tradeguider ( almost ) replica . If anyone here wants to give it a try I found that it could be useful but is a resource hog and my computer is 2 g ram and feels a drag from it .

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.

Attached Thumbnails
How to use volume in your trading-6e-03-10-1_7_2010-5-min-.png  
Reply With Quote
 
  #347 (permalink)
Trade with the flow
Paris, France
 
Futures Experience: Advanced
Platform: Market Delta & Ninjatrader
Favorite Futures: ES
 
cunparis's Avatar
 
Posts: 2,563 since Jun 2009
Thanks: 1,157 given, 2,032 received

Found the legend on the ninjatrader site:

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.

Reply With Quote
 
  #348 (permalink)
Elite Member
Chicago
 
Futures Experience: Advanced
Platform: custom
Favorite Futures: ES
 
traderlars's Avatar
 
Posts: 96 since Dec 2009
Thanks: 1 given, 88 received

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?

Thanks


Reply With Quote
 
  #349 (permalink)
Trade with the flow
Paris, France
 
Futures Experience: Advanced
Platform: Market Delta & Ninjatrader
Favorite Futures: ES
 
cunparis's Avatar
 
Posts: 2,563 since Jun 2009
Thanks: 1,157 given, 2,032 received


traderlars View Post
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.

Reply With Quote
 
  #350 (permalink)
Big game hunter
NY
 
Futures Experience: Advanced
Platform: Esignal, MBT navigator
Favorite Futures: Currencies
 
Posts: 2,526 since Jun 2009
Thanks: 1,397 given, 2,570 received



cunparis View Post
Found the legend on the ninjatrader site:

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.

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 .

Reply With Quote

Reply



futures io > > > How to use volume in your trading

Thread Tools Search this Thread
Search this Thread:

Advanced Search



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

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Cumulative Delta Volume Trading Big Mike The Elite Circle 980 December 10th, 2017 07:17 AM
volume trading indicator tony2604 Traders Hideout 10 March 17th, 2011 03:34 PM
Volume trading - fictive scenario trendisyourfriend The Elite Circle 6 December 16th, 2010 05:16 PM
Price & Volume Trading Journal ZTR Trading Journals 117 February 21st, 2010 04:02 AM
Multi Volume/Time Frame Trading wh The Elite Circle 7 September 15th, 2009 05:55 PM


All times are GMT -4. The time now is 01:47 AM.

Copyright © 2017 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
Page generated 2017-12-16 in 0.17 seconds with 20 queries on phoenix via your IP 23.22.136.56