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

  #441 (permalink)
Trade with the flow
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tony2604 View Post
Hello,
what I donīt understand with better volume indicator is as follows:
  • Volume Climax Down – high volume, high range, down bars
  • High Volume Churn – high volume, low range bars
  • Volume Climax plus High Volume Churn – both the above conditions
How can be "both the above conditions" when Climax are high range bars and Churn are low range bars?? (text taken from The Better Volume Indicator – My Secret to Analyzing Volume

Best
Tony

I don't really know the answer to your question. When I was using Better Volume I was only using the HVC & LV bars, I turned the climax up & down off. Now I'm not using better volume, he has a new volume indicator which has replaced it called "Pro Am" and I have made my own paintbar which is very similar. There are better ways to detect professional activity than just the HVC. Sometimes but not always there is HVC at a turn, but almost always there are other signs of professionals fading the move before the turn. An example from yesterday's chart:

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  #442 (permalink)
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tony2604 View Post
Hello,
what I donīt understand with better volume indicator is as follows:
  • Volume Climax Down – high volume, high range, down bars
  • High Volume Churn – high volume, low range bars
  • Volume Climax plus High Volume Churn – both the above conditions
How can be "both the above conditions" when Climax are high range bars and Churn are low range bars?? (text taken from The Better Volume Indicator – My Secret to Analyzing Volume

Best
Tony

A churn bar is not necessarily a low range bar. The criterion for churning is range per volume. So even a wide ranging bar can become a churn bar, if the volume is excessively high. So if you have a wide ranging high volume bar it can comply with both the necessary conditions volume x range > average (volume x range) and volume per range > average volume per range.

What does a volume churn bar mean?

Imagine on a 5 minute chart that you have a bullish move with a climax bar followed by a churn bar. The climax bar stands for the end of a parabolic move. The churn bar that follows shows that there is resistance as sellers are stepping in. This is called stopping volume. The sellers are passive and sell at the ask, but they are strong enough to stop the move. The selling is the start of a distribution pattern. Often price will stay in a trading range then the bulls will regain force and you will see a final flag or bull trap.

Now how does this display on a 10 min chart. The 5 min expansion bar (wide range, high volume) and the 5 min churn bar (narrow range, high volume) will combine to form a 10 min climax churn bar.

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How to use volume in your trading-climax.jpg  

Last edited by Fat Tails; August 5th, 2010 at 03:55 AM. Reason: chart added
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  #443 (permalink)
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cunparis View Post
I don't really know the answer to your question. When I was using Better Volume I was only using the HVC & LV bars, I turned the climax up & down off. Now I'm not using better volume, he has a new volume indicator which has replaced it called "Pro Am" and I have made my own paintbar which is very similar. There are better ways to detect professional activity than just the HVC. Sometimes but not always there is HVC at a turn, but almost always there are other signs of professionals fading the move before the turn. An example from yesterday's chart:

Do you have a definition of the various patterns of the Pro Am indicator? For example

- Profit Taking
- Stopping Volume
- No Demand / No Supply
- Ramble (Reversal)
- Professional Volume
- Amateur Volume

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  #444 (permalink)
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Fat Tails View Post
Do you have a definition of the various patterns of the Pro Am indicator? For example

- Profit Taking
- Stopping Volume
- No Demand / No Supply
- Ramble (Reversal)
- Professional Volume
- Amateur Volume

PT, St, ND & NS = He has talked about these individually in the past. I had already coded some of them up. If you search his blog there are posts about them and he gave away the code.

Rambo is a new one and from what I see it's just an amateur bar making a new high. Usually this occurs from amateur breakout traders (I'm one of them on the dax hehe).

The pro & amateur is a bit more complicated. In my version I use 3 algorithms to determine professional & amateur activity in 5 levels. My results are therefore different than Barry's Pro Am paintbar. I made mine because I wanted it for Ninjatrader and wanted to be able to use the logic in strategies.

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  #445 (permalink)
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Not a reply, more a cry for help! New to volume and price analysis and currently have a provider (ToS) that doesn't offer range bar charts. Downloaded the VSA indicator and been looking at that. Get the Kruger weekly vid too.

On a day like today when trading (in the ES) was relatively constrained-both in price movement and volume I was wondering whether range bars might have helped negate some of the chop.

Be grateful if somebody could kindly post an ES range bar chart-(ideally candlesticks) so i can compare and contrast.

I'm guessing, but say 8 ticks?

Many thanks

The Gnome

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  #446 (permalink)
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GardenGnome01 View Post
Not a reply, more a cry for help! New to volume and price analysis and currently have a provider (ToS) that doesn't offer range bar charts. Downloaded the VSA indicator and been looking at that. Get the Kruger weekly vid too.

On a day like today when trading (in the ES) was relatively constrained-both in price movement and volume I was wondering whether range bars might have helped negate some of the chop.

Be grateful if somebody could kindly post an ES range bar chart-(ideally candlesticks) so i can compare and contrast.

I'm guessing, but say 8 ticks?

Many thanks

The Gnome


Here is a 4 range and and an 8 range (right)

d

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How to use volume in your trading-es4r8r.png  
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  #447 (permalink)
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Many thanks: bang on the money!!

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  #448 (permalink)
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Ping Pong


GardenGnome01 View Post
Not a reply, more a cry for help! New to volume and price analysis and currently have a provider (ToS) that doesn't offer range bar charts. Downloaded the VSA indicator and been looking at that. Get the Kruger weekly vid too.

On a day like today when trading (in the ES) was relatively constrained-both in price movement and volume I was wondering whether range bars might have helped negate some of the chop.

Be grateful if somebody could kindly post an ES range bar chart-(ideally candlesticks) so i can compare and contrast.

I'm guessing, but say 8 ticks?

Many thanks

The Gnome

If you are a gnome that was your day today, was it? The forth consecutive gnome range. I think today range bars would not have changed very much. And 8 ticks seems a lot for the price action of today.

There was a sell off after the news release. Expectation for tomoorow remains low, so there was little hope that price would recover. Only thing to do: Watch the opening range and the pivot range. Buy at the RTH open, sell or buy the main pivot, sell the upper border of the pivot range. A bit of playing ping pong.

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  #449 (permalink)
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Thank you FT- a work of art in itself!!

-maybe I'll give up the 5 min candles!

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  #450 (permalink)
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GardenGnome01 View Post
Thank you FT- a work of art in itself!!

-maybe I'll give up the 5 min candles!

I use 5 min candles as well, just use 15 min for the daily picture. Always afraid not to see the wood for the trees.

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