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Trading forex and futures. Easy system using volumes

Posted by VolumeTrader • 12/27/08 • Subscribe to this Discussion [RSS] • Report This Topic
Topics: forex, futures, profit, Trading, trading system

There are 3 types of volumes on the market:

Volumes by tick - shows dynamic of price changing for selected period
Volumes by amount - shows number of performed operations (buy/sell) for selected period
Clear volumes - shows number of contracts/lots bought/sold for selected period for selected one price

The last one is more interesting for us, as only he show us fixed marked interest regarding some prices or price ranges. This means that price movements are absolutely related to amount of lots/contracts that was moved inside market. Or to make it easyer: volume ---> price.

Thanks to volume analysis we can make a decision where movement will start, and where it will ends, as price cycle goes from one volume to another.

Intraday volumes makes daily, daily volumes makes weekly, weekly makes monthly.

Well, it will be better to show how it works. Took volumes for JPY/USD for the date 2008.10.16:

volume - price
4906 - 099810
4694 - 099800
4648 - 099820
4562 - 099780
4412 - 099790

All lines are gouing all together, so we got massive line of resistence, and take a look what happens at 2008.10.17 - the price touched our lines and move back. Check the picture on this link: 3.bp.blogspot.com/_Ez8kBneKUMs/SQYWBUmxfoI/AAAAAAAAAGU/Mu6rioHmuvM/s1600-h/...

Here is finished flash applet to view volume at price data. It required Flash Player Version 9 : trading-evolution.com/

How we should know the drown line is line of resistance or support? Hmm, the best way is to watch what price is doing near our line, let's discuss the previous picture.

Price is going up from some lower value, it touched the line, and move several pips higher, but revert back to it, and here we should sell JPY/USD . If the price will not revert back, but moves higher and higher - just ignore it.

The stop loss should be placed not far from our lines - I think 20 pips willbe enough, but it depends from drown lines, if they form the area of support/resistance - SL should be placed 20 pips after the last line.

And that's all about rules.

User Comments

12/27/08

VolumeTrader

And here is the full list of products the volumes can be shown by eVOLution.

Indicies:
E-Mini S&P 500
E-Mini Nasdaq
E-Mini Dow Jones

Currencies:
EUR/USD (6E)
GBP/USD (6B)
JPY/USD (6J)

Commodities:
Corn
Wheet
Soybeans

The volumes are taken from CME site, actually here is the link to the report: www.cmegroup.com/tools-information/build-a-report.html?report=priceByVolume

After report generated you can copy data to excell and sort by volume - the top 10 prices are the same as shown in eVOLution. And actually this is the way how it works.

[reply]
12/27/08

jackpayne

I like the volumes system.

[reply]
12/27/08

VolumeTrader

Yes, it's really easy to use.

And here is maybe the best trade from last week on GBPUSD (6B futures): www.forexfactory.com/attachment.php?attachmentid=185230&d=1229960838

Green lines are the one from previous day and the perfect area of resistance, totally the 250 pips could be taken. On the picture screen is divided to 2 esction, the left one (19 december) is where volume was generated, and the right one (22 december) where the lines made resistance.

Good luck!

[reply]
1/03/09

VolumeTrader

The result of my agressive trading using eVOLution.

The short history is that I am a member of contest that lasts 3 month, 2 month I traded with no profit - almost all loses. From 10 december I started trading with volume but in some agressive way - without stop loss, with a risk and with a large lots. The result is impressive - 82% in 3 weeks (from $8300 to $15111). Here is the link to html statement: somebody.pp.net.ua/_ld/0/4_DetailedStateme.htm

I will not trade with such risk on a live account, but some conclusions should be made and I will do that later - after rethinking what happened.

[reply]
1/03/09

lettershome

Old rule of thumb: if it seems to easy to be true, it probably is.

Another old rule of thumb: never invest in anything you don't understand.

[reply]
1/03/09

jeremylong

i am still learning....very hard !
i do agree with lettershome "never invest in anything you don't understand"

cheers!

[reply]
1/03/09

VolumeTrader

Hmm, I agree completely, but understood "never invest in anything you don't understand" as someone should invest to me. This is incorrect, I am not advertising my trade, but share the method. The resources I provided are free.

Good luck.

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