Learn to read between the lines - page 3
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Downmove did`t have continuation,just the opposite since price went to retest previous highs...there is nothing significant with the volume...only thing worth mentioning is that the last closed bar shows a positive test for supply,so,there is still supply in the market and that needs to be cleared if prices are going to move up due to stop loss triggering...and that prices had broken previous supply line and closed on a trendline.
Some indicators
Ok - I must admit that I don't know anything how to use volume and so find this information very interesting indeed.
I started playing a bit today - and created some indicators to try get the ball rolling.
A small description of each:
V_Spread - Number of pips between high-low on period.
V_ClsPers - Percentage where the close happened.
V_Float - Float measured according to the zig zag.
Hope this may be of some help.
More indicators
It also occured to me that (maybe??) ticks are not born all the same.
Reasoning is that (maybe??) ticks at the top/bottom - support/resistance are more important because this is where we'd expect to find the major players waiting.
As such I devided volume by range (of the period) and created another indicator.
There seems to be some logic as the float line becomes more strait - but, what the meaning may be I'll leave up to the more clever people here.
Indicators
Can somebody out there please tell me - is the test for
1.) Buy/Sell Climax
2.) Buy/Sell Reversal
correct in this code/indicator?
Also - I do not understand how to test for low/high supply/demand.
Adding this, perhaps we'll have some start towards this VSA thing.
Thanks for the help.
Can somebody out there please tell me - is the test for
1.) Buy/Sell Climax
2.) Buy/Sell Reversal
correct in this code/indicator?
Also - I do not understand how to test for low/high supply/demand.
Adding this, perhaps we'll have some start towards this VSA thing.
Thanks for the help.Hi jdpnz,
1-Thanks a lot for your indicators,give me a few hours to test them and I will give you my opinion,the concepts behind them look sound,and they look promising.
2-For VSA context is everything,if we are at lows or highs ,support or resistance gives the context to then understand the "moves".
3-Test for demand is done at lows/consolidation areas when you have a long tailed bar with close in the higher section and higher volume than previous 2 bars...you can have a very similar bar,with low volume which is a failed test for supply/fake downthrust..basically,before smart money starts pushing prices back up they test the market to see if either there is enough demand below them(so that they have a "net" for a low risk trade) or there is still supply(big money willing to SELL at lower prices or weak hands willing to close their longs when stopped out)...usually,either demand or failed supply(no supply) means the road is clearer for higher prices.
4-Test for supply is done at highs/resistance of a top or a consolidation area,when you have a long tailed bar with close in the lower sections on high volume(higher than previous 2 bars)...this means there is strong supply...same bar with low volume(lower than previous 2 bars) usually means a failed test for demand /fake upthrust that confirms big money is not interested to buy at higher levels and clears the stops of weak hands allowing the smart money to accumulate shorts at even better average price...usually either strong supply or failed demand means the road is clearer for lower prices.
VSA is very difficult to understand without contextual cues,and definitions may be fuzzy at times..sometimes you see volume is higher than previous 2 bars but within the context of the last bars at S/R it is small ...and what means lower/higher section?50% of bar length?40%,60%?..so,I am glad that you try to code it but I have to tell you that this is going to be tough
Ok,give me afew hours and will check your indicators and revert.
Thanks again.
Update
GBPUSD is still in the consolidation area 1.7300/1.7650 in round numbers,no clear signal given either way,though we will probably get one soon,since this is the third day of consolidation.
I haven`t forgotten about this thread
..just that price keeps breaking up or down previous resistance and support levels but there is no qualification by low volume whatsoever...and,indeed price keeps trending down..so,at least....This looks like a safe system...If tomorrow we don`t have any setup I will switch timeframes up and down and see if we can catch some signal and test the system`s reliability.
Thanks for your patience.
Hi,
This thread still active?
active?
Hi, This thread still active?
Hi jdpnz..Good question..;)...frankly ,having to calculate all the swing volumes manually,for all timeframes, doesn`t specifically enhance the probabilities to make this a lively thread....I still haven`t found a valid setup,and ,probably,we had a few ones that I missed.
You have been very kind to make several indicators for the thread,I am testing them and I will revert to you either here or by PM and tell you my opinion...some of them certainly look like they can be useful....others might need a slight tweaking.
If you have any specific question that I can help you in finding an answer,please be so kind to post it here...the problems with these kind of set ups are 3 :1-how to scan efficiently?...2-How to combine timeframes?...3-What are the limits..ie ..author posts 50% for stocks..but for indexes and Forex,for sure they are lower?
Scripts for Ord Volume and force
Hi Simba,
saw your thread and thought I will post a few of the scripts I use for calculating ord volume in metatrader. I also use the concept of force which is basically how much volume was used to move price a certain distance. To suse these scripts you will need to create 2 vertical bars on your chart using the vertical line and name them ov1 and ov2, ov1 will be the vertical line on the recent bar and ov2 will be on the earlier bar, this way you pick your swing high/low and then run these 2 scripts. I have assigned hotkeys for them both. The scripts will calculated ord volume and force for the bars between the vertical lines ov1 and ov2. It works well, I think you will enjoy it.
Remember the attachments are scripts so put it in the scripts folder.
Regards