Volume Price Level Trading (1)

8/13/2019 Volume Price Level Trading (1)

1/83

Volume Price Level Trading

http://www.forexfactory.com/showthread.php?t=402865

Volume is a popular tool amo! traders" #ut most loo$ at %olume o%er time. &he you

plot %olume a!aist price scale" the a completely differet picture emer!es. 'here areprices that ha%e a lar!e amout of %olume ad prices that ha%e much less %olume.

Volume (rice )e%el 'radi! is ot ew" i fact it is as old as futures tradi! or e%e thestoc$ mar$et itself" lo! #efore computers existed ad the oly tic$er..well...was a tic$er

tape of price ad %olume. *ay ar!ue i +orex that %olume is a meai!less idicator

#ecause it oly idicates a #ro$er,s %olume. 'here are two pro#lems with that ar!umet.

'he first is that why idicators e%e wor$" is that they extrapolate historic price data adthe traders use this iformatio to ma$e trades which affect price actio. -ecod"

%olume is ot a idicator.

Volume typically leads price ad is the oly tool that does,t extrapolate historicalum#ers i.e. what the mar$et did to determiee a result. Volume is price actio. 'he

effect o price is that hi!h %olume teds to #e attracted or wor$ withi a price ra!earoud a price le%el. i!h %olume is hi!h mar$et iterest i a price le%el" low %olume is

low mar$et iterest i a price le%el.

'he mar$et mas that for e%ery #uyer there is a seller. +orex is ot radom price mo%es.

(rice mo%es #ecause someoe is selli! ad someoe is #uyi! at a price. 'he more

popular a price for #uyers ad sellers" the more %olume.

Volume i +orex is a #ro$er,s tic$ %olume data from it,s ow data#ase. 'his meas that

%olume is a record of e%ery trade" 1 trade" 1 %olume. Volume is ot the uatity traded.'he reality of +orex is that e%eryoe sees the same price" e%eryoe uses the sameidicators ad why %olume wor$s across #ro$ers is that the mar$et ma$es the same

decisios" re!ardless of which #ro$er they use. 'he ed result" is that at each price le%el

the %olume icrease or decrease is relati%ely the same at ay #ro$er #ecause the mar$etiterest is the same at each price le%el. 'his has #ee pro%e time ad time a!ai" #y

traders usi! multiple #ro$ers" compari! #ro$ers" #y usi! multiple #ro$er feeds" ad so

o. Volumes will ot #e exactly the same" #ut their relati%e mo%emet to price will #e the

same.

3 price le%el is li$e a ma!et" price cadles are iro #ars attracted to the ma!et" ad

%olume is the ma!et,s stre!th. 'he stro!er the price le%el" the more attracted price isto it. (rice will #ouce aroud a stro! price le%el ad #e difficult to mo%e off the price

le%el. 'ry to mo%e a iro #ar that is attached to a ma!et...%ery hard to mo%e" #ut oce

the iro #ar mo%es away from the ma!et" it is a lot easier to mo%e.

&he a price le%el is wea$" there is othi! to hold price at a fixed le%el ad prices ca

mo%e more a!!ressi%ely ad uic$er. ro #ars will easily pass #y wea$ ma!ets" #ut

whe they hit a stro! ma!et they will stic$.


2/83

'rades i the mar$et are lar!ely predetermied. 'here is a price le%el where #uyers ad

sellers will !ather. 'his meas that if you watch price ad %olume" you are ot loo$i! atwhat has happed i the past" you are loo$i! at where the mar$et is headed. ce you

fid a stro! price le%el" you ca trade to ad from that price le%el $owi! that price

will #e attracted #ac$ to that price le%el.

Volume (rice )e%el tradi! is ot a system i a traditioal sese. t is readi! the

mar$ets. owe%er" may mo%es with price/%olume are repetiti%e ad predicata#le. &hatca e%er #e for!otto is that we trade price le%els" we are loo$i! to where price is most

attracted too.


3/83

&he you loo$ at a +orex price chart you ca see that there is a costat oscillatio of

price" ad if you oly $ew where those pea$ prices were to tri!!er your trade ad ride a

tred well tradi! would #e so easy would,t it?

&ell" the first thi! to reali7e is that this $owled!e of pea$ price le%els is a%aila#le to

you e%ery day ad that the %ast maority of these pea$ price le%els are predetermied #ythe hu!e moey dealers. other words" these price le%els are ot radom #ut decided o

i ad%ace" #y miutes" hours or days i ad%ace.

'he %olume idicator shows us e%erythi!" the secret is iterpreti! that iformatio to

determie the price le%el" set your trade at that le%el ad the reap the rewards.

-o" let,s di%e ito %olume tradi! ad price le%els ad let me show you how to fid a ewle%el of tradi! success.

'his is a *'4 chart with %olume idicator added o the *15 time frame. 9ou will otice

ha%e made the %olume chart oe colour as thi$ seei! differet colours for the risead fall i %olume oly cofuses matters. ,%e also added a le%el lie o the %olume

idicator at 500. 'his is a ar#itray lie use ust for referece to i!ore the %olume oise#elow this lie. f tradi! o *0" use le%el ;50 ad o 1 it is le%el 1000" i case you

are woderi!.
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4/83

-o let,s read this chart from 5 we,ll e%er

#e exact ad it is !ood practice that we typically use the 5 ad 0 price le%els whe

setti! a price le%el.

-o at this poit we $ow ha%e esta#lished that there is a price le%el lie at 1.1>5 ad this

has tri!!ered a #uyi! spree i the mar$et.+rom >:00 to >:0 we ca see that %olumes ha%e declied ad the price has pretty much

maxed out at the top of the chart. -o after the >:0 cadle closes" put my sell order i at

the 1.222 ad waited for my order to !o throu!h" which it did. *y stop is at 1.20" alittle hi!her tha the hi!hest price reached sice the Volume 'ri!!er.


5/83

*y exit tar!et is simply at 1.1>5 where the (rice )e%el )ie at 'ri!!er is set. 'his is a

simple set the trade ad for!et with my #ro$er. owe%er" #etter strate!ies to maximi7ethe trade ad exit #y %olumes ad price do exist for i the momet tradi!.

f you paid attetio you ca see my error where set the (rice )e%el )ie at 'ri!!er. set it at 1.222 ad at 10:45/11:00 we ha%e proof #y the %olume spi$es that the real price

le%el is at 1.220. otice my error? should ha%e stuc$ to the 0 price le%el at 1.220

ad ot 1.222. this istace it did ot hurt me" #ut trade opportuities ca #e missed#y a simple mista$e li$e this small as it may seem.

3lso at 11:00 we ha%e a ew tri!!er ad price le%el lie to esta#lish for a lo! trade. 'he

safe le%el is at 1.185 or 1.1>0. ,ll let you poder that for ow ad see if you ca fi!ureout why that,s a safe etry poit for a lo! trade. 3d where would you exit?

t loo$s so ar#itrary ad simple does,t it? t is ad it is,t. #%iously esta#lishi! the

correct price le%el lie is the challe!e ad my hope i this forum is to show you how todetermie that price le%el lie@ ot ust #y istict #ut with some lo!ic ad aalysis so

there is o emotio or secod !uessi! i your tradi! ad that you are ma$i! pips allthe time...ad ot hitti! those dreaded stopsA

Trading and Some Pitfalls

'here are defiitely some pitfalls to watch out for ad $owi! these ad measuri! our

ris$/reward will !o a lo! way i $eepi! us profita#le.

)et,s loo$ at the ext chart ad our Volume 'ri!!er" you ca see the %olume #efore this

was almost oexistet ad relati%e to that o


6/83

ow" let,s loo$ at the pitfall loomi! ahead. &e ust made a !reat short trade ad we !etaother tri!!er o


7/83

hi spudfyre " tha$ you for this thread ad i ust wat to see if !ot it ri!ht here a exempleo eur/usd we had a %olume spi$e at 1:0 am so price le%el lie at tri!!er is 1.265 ad

price le%el lie after tri!!er is at 1.285 so we will short from 1.285 with stop at 1.2>5

tar!eti! price le%el lie at tri!!er

9es" the o%erall cocept is correct. mi!ht differ with you o price le%els. ,d prefer at

price le%el at tri!!er of 1.260" ust #ecause we saw o %olume for the price to dri%e

#elow 1.255 ust pre%iously aroud 2:00. ,d li$e a stop at 1.00" thi$ it is lessli$ely to !et hit...1.2>5 mi!ht !et tested or ust touched. li$e the 1.285 etry" ma$i!

the ris$ ratio !oodlose 15:!ai 25 the ris$ ratio allowed me to set the stop hi!her ad

a stro!er reaso !o with a hi!her stop.


8/83

Dust a poit ,d dou#le up my short order ri!ht after the :00 cadle...otice the spi$e i

%olume ad the lac$ of respose i price. 'hat,s aother tri!!er #ut our price le%els wouldot cha!e ad we,d #e loo$i! at the same trade etry/exit. t,s ust a #ous we should

ta$e ad%ata!e of.

oly trade ad ma$e the decisios after the cadle closes. e%er ma$e or #ase a

techical decisio o a ope cadle. f wat a earlier pea$ or etry" use a lower time

frame li$e *5 ad trade o the *5 closed cadles. ,m #i! o multitime frame techicalaalysis ad tradi!.


9/83

1.0>5 seems to hold ud!i! from the hi!h %olume o the dow #ars which are ua#le to

mo%e price lower. 'he close is well off the cadle lows which reflects #uyi! acti%ity.

)et,s !o throu!h what we see e%eryday i %olume ad price le%els.

+irst" let,s for!et the word %olume as it is a techical term. stead we will use the word'FGF-'. (ea$i! %olume meas their is 'FGF-' ad low %olume meas their is

o 'FGF-'. 'FGF-' i what? (rice le%el.

IMPORTANT:

Volume ad price le%els is ot a#out predicti! or forecasti! where the price is mo%i!

too.stead it is a#out $owi! where the price le%els are to eter a trade whe a price le%el is

reached" ad exiti! a trade whe a price le%el is reached.

&e order ad eter a trade whe price hits a price le%el" i the directio of iterest" ad

set a exit where iterest will fade.

will ow show you.

)et me explai 'FGF-'.

V)B*F = 'FGF-'

'he chart #elow o the left side seems pretty simple. Volume is risi! ad price is risi!"which meas #uyers are #iddi! up to sellers i order to purchase demad. terest is

hi!h ad somewhere alo! here we ha%e crossed a importat price le%el. ,%e set it atlie 3 o the chart 1.200.

&e ca see where 'FGF-' is lost i the price. -omewhere a#o%e lie C. &e do,t$ow exactly where #ut we ha%e a referece poit" used 1.2;5 as the price le%el sice

we ha%e a drop i %olume a#o%e this price le%el after a %olume pea$.


10/83

-o etry for a short would #e at 1.2;5. reality this is a #it of a !am#le" #ecause we

oly $ow from what we see that #uyers lo%ed the price at 1.200 ad lost 'FGF-'a#o%e 1.2;5. Cut our ris$ reward ratio is uite hi!h. ur stop would fall aroud 1.00"

our etry at 1.2;5" ad our exit at 1.225...that,s 2x eari!s %s a stop loss ris$.

3t this poit we ha%e hit a %olume pea$ 5 cadles from the left of the chart our

'GHHFG. +or 2 cadles after the pea$ we saw %olume drop ad price clim#. -o

'FGF-' i this price hi!her le%el has faded.

3t this poit we are pretedi! we ha%e o pre%ious price ad %olume history except

what is o this chart" so our trade etry here is the typical thi$ price is !oi! thata

way. &e ha%e disco%ered 2 price le%els from 'FGF-'" #ut that is far from really$owi! aythi! cocrete yet.

3ttached 'hum#ails

3s we pro!ress we ca see where the %ertical lies are draw o the chart that %olume is

risi! ad we see the lar!est price mo%emets are dow. 'he first price mo%emet simply

reiforces that 'FGF-' i price le%el is still ot a#o%e our hori7otal lie C. 'he pricemo%emet ad hi!her %olume meas that 'FGF-' is i price !oi! dow. Cuyers are

purchasi! as price drops.

Cetwee %ertical lie 2 ad %ertical lie price drops ad %olume falls ad as %olumecotiues to fall" price starts to rise. 3!ai o 'FGF-' i a hi!her price ad lies I

4 almost pe! our upper price le%el. 'he hi!h %olume 'FGF-' here is aticipatioad #uyi! that #ecause price is mo%i! to cross the upper price le%el or has crossed"

sice we do,t $ow exactly where it is that price may ump. 'his ust further reiforces

that our C price le%el lie is close to where it should #e.3ttached 'hum#ails


11/83

)ies 5"6 ad ; are all pea$s of %olume 'FGF-' ad where does the iterest lay?ot i price !oi! up" there is 'FGF-' i selli! at this price le%el.

3d ow thi!s will !et iteresti!.3ttached 'hum#ails

ow" otice how the 'FGF-' cha!es at lies 8 ad >. i!her %olumes ad price

!oi! up. 'his is a mar$et cha!e ad sets a #rad ew price le%el at hori7otal lie Ewhich is 1.250.

'his price le%el is crystal clear if you ta$e a loo$ #ac$ at where price stopped falli!#etwee lies 2 ad " as well as after lie 6. 'his price le%el is ot radom. )oo$ #ac$

further to the 4th cadle from the left side of the chart....remem#er there was iterest i
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12/83

price passi! a price le%el ad ow we foud it.

'he mar$et has cha!ed" so either their will #e 'FGF-' i the price !oi! hi!her" orthe price !oi! lower. &e simply ha%e o clue at his poit i time. 'he safe play here is

exit our trade" #ut it is still soud to stay i our short trade for ow as we are far away

from our stop.3ttached 'hum#ails

he 'FGF-' simply remais at this price le%el oe cadle after %ertical lie > ad theas price rises past our ew price le%el a!ai their is o 'FGF-' at this price le%el.

ur C price le%el is oce a!ai %erified as a o 'FGF-' price ad #uyers do,t watto #e #uyi! at this price.

ow" we ha%e our trade. 'his is the real deal" ad simply a ride from 1.250 to 1.200.&hy?

&e $ow that there is a#solutely o 'FGF-' from #uyers at either the 1.250 or

1.2;5 price le%els.&e $ow that the mar$et cha!ed ad our ori!ial C price le%el at 1.2;5 has dropped

to 1.250 at the E price le%el.

-ice there is o 'FGF-' i #uyi! at these le%els" there will #e a 'FGF-'

%olume pea$ comi! ad li$e pea$s 2" 6 ad ; it will #e sell #ecause our price le%el stillexists at 1.200.

Vertical lie 12 is ot a surprise" it is fully aticipated #ecause that is where the'FGF-' is.

3ttached 'hum#ails


13/83

Elosed cadles or differet time frames. 9es" you ca miss mo%es i ope cadles" #utmy experiece is that ma$e a lot of #ad decisios tradi! ope cadles. Elosed cadles

mea more to me" ad ha%e remaied costat i that.

'he way aroud ope cadles is to trade shorter time periods" or loo$ at shorter time

periods for a etry. -o" if you are usi! *15" #ut wat to trade part way throu!h a

ope cadle" drop dow to *5 ad see if it supports your deciso. wrote a lot a#out

multitime frames i *'+ -tochastics ad Fscalator to (ips i these forums. usestochastics routiely" #ut that,s ust my preferece whe usi! a oscillator idicator.

'he %olume pea$ i white@ prior to that there is a red %olume #ar that pea$s" there is acrossi! of a price le%el there esta#lishi! a ew price le%el o this chart" #ut the

iterest is ot stro! i the price clim#. &he the price turs dow ad %olume !oes up

ust #efore the white pea$" we cross the price le%el ad there is far more iterest i themar$et with price !o! dow.

&e would #e eteri! a short order at this ew/existi! hi!hest price le%el ad exiti! at

the ext lower price le%el.

,%e draw rou!h price le%els where the %olume 'FGF-' is #ei! supported.

3fter the #i! drop price le%els are esta#lished" follow the %olume %alleys closely ad

you should #e a#le to see how the price le%el iterest is #ei! esta#lished.

3t the ed of this chart their are 2 spi$e %olumes with clim#i! price. 3t uic$ !lacead loo$i! at price at a whole it loo$s li$e iterest is less o the fial price clim# #ut the

!ree lie is actually iterest i a hi!her price. t,s may #e hard to see ad put to!ether"

#ut remem#er it is where the 'FGF-' is" ad the iterest %olume pea$s aresupporti! a clim# ad that hi!her !ree le%el.


14/83

f that fial cadle is closed ad the %olume closed at that le%el" ,d #e putti! a lo!

order i where my !ree arrow is at the middle price le%el" loo$i! for price to rise #ac$

up to the hi!hest price le%el.

'his is a %ery tou!h trade ad reuires really payi! attetio to details i the

%olume/price mo%es.

'his is old stuff. ,%e always used it...ot as a system #ut to read the charts.

-i!le most powerful tradi! tool you will e%er ha%e i your arseal.

'his !oes way #ac$ to readi! tapes ad tradi! without home computers...ad ,m reallyot that oldA

t still as rele%at today.

,%e certaily modified it o%er the years from use ad experiece. ,%e had far more

success focusi! o fidi! mar$et price le%els" tha focusi! o more arrow price

actio. )ast years" ha%e #ee the most success usi! price le%els...pro#a#ly #ecause really put a focus ad dedicatio ito readi! the charts this way" had the time to

focus...ad mo%ed away from the more easy ad la7y? use of idicators. 'his causes far

less tradi! stresses ad ca eter ad wal$ away from trades" istead of li%i! i frot

of my computer.

ow" tryi! to write it dow ito somethi! meai!ful for others to use...this is a first

attempt at that challe!e.

(rice )e%el Gules 1;

Fsta#lishi! (rice )e%els

(rice le%els are what we trade too. ur first tas$" CF+GF we trade" is too esta#lish


15/83

some price le%els we ca use for tradi!. +irst we simply eed a starti! poit a little

ways #ac$. f you are a acti%e trader" oce you start you will simply maitai your chart

with the curret price le%els o it. 3 more casual trader will ha%e to !o #ac$ i recettime ad fid the curret price le%els. ere is how we do it.

Rule 1. Price and Volume are one thing.Never believe that price moves without volume or that volume moves without price. You

will never understand one without the other. The only thing your need on your chart are

price candles and the Volume indicator (I use MT4 Indicators, Volume, Volume.

Rule . Volume ! Interest.

Never call volume !volume!. This will only con"use you and means absolutely nothing.

!INT#$#%T! on the other hand means something...as in !INT#$#%T IN &$I'#!. I meanhow interested the maret is in price.

Rule ". Trade on #ur$%S& M1'.

This is the easiest currency to trade and usually costs you the least in spread. )e useM*+ because "or one it is the most a""ordable time period to trade "or the small investor

(i.e. reasonable stop losses, ris, earnings, etc. and the other reason is we can utilie M+and M- in more advanced topics to be even better traders to con"irm M*+./h ya, and

you thought this would be simple...and yes you don0t have to trade in multiple time

"rames to be a success 111 but it is more "un2

Rule (. It doesn)t matter *here *e start+ ,ut *e have to start some*here and not too

far ,ac- in histor *hen esta,lishing our first /rice level.

This is open to how much wor you want to do be"ore you enter your "irst trade o" theday. It is also sub3ective to how con"ident you are in the price levels you establish. I

recommend at least *14 hours bac and i" that doesn0t "eel right try 4145 hours. Too

"ar bac and you are 3ust wasting your time (i.e. 6 days is way too "ar bac. You wantsomething that gives you a good starting point as we discuss in $ule 6.

Rule '. The 0irst Price Level e #sta,lish ill 2e Our ea-est in 3onfidence+ the

Last Our Strongest

/ur "irst &rice 7evel will be determined with only * or sets o" data, our last should

have our "ull con"idence and have been derived "rom all relevant data available.

8eyword here is !relevant! 1 see $ule 4.

Rule 4. Price Level Price)s Al*as #nd in 5'5 or 565.

This is a !pshyco1logical! price level, well written about and e9plored. It0s real, it e9ists,why "ight it: I simply will never e9plain or 3usti"y this rule. It is what it is...pshyco but

logical.

Rule 7. 5Scanners On S/oc-85 9 &etect the 0irst Price Level

-ee chart #elow...please ote this is ot a trade set up

+id a !ood clear spi$e (ea$ 3 i %olume with a lar!e or lar!est price actio cadle.

-ee red %ertical lie 3.


16/83

Ho #ac$ a little i time ad fid aother spi$e (ea$ C with some decet price actio

that falls withi your first selectio this is to help arrow our price le%el ra!e. -ee

!ree %ertical lie C.Cy falls withi we mea that the price cadle is i the samera!e as our first cadle" the two should cross the same price le%el.

'he price le%el is hidi! #etwee the two hori7otal dashed lies E ad

supported over *.-*4, you need some sound reasons to pic a level.

'onsider this "irst price level a very well educated guess and trade accordingly "ullyaware o" the riss o" trading a very well educated guess. You can trade on it, 3ust don0t

get cocy2

'on"used: =s "or &rice 7evel another way: )hat price cuts through candles with the

highest volumes near each other: )hat is happening be"ore and between these two

candles with price and what is volume doing (i.e. lower between these candles:3ttached 'hum#ails

)here e9actly is the pea you are taling about here: (!be"ore the second pea at line

!

-ee chart (ea$ C


17/83

(rice ad %olume are oe. )ie < is the upper price le%el ra!e the hi!hest our price

le%el ca #e !i%e the %olume data. t is i this example" the hi!hest price of that cadle

foud i %ertical lie C.

opefully the (ea$ C la#el o the chart ow helps.


18/83

Gule ; -tep Cy -tep -tep 1

)et,s ust say wat to start tradi! toi!ht" ad e%er traded #efore. order to trade eed to fid some price le%els to trade too. 'hat way ca eter my

orders ad exits.

+irst" eed to esta#lish a fairly cofidet price le%el with little data a%aila#le to me. 'hisis a iitial referece poit that will start from ad #e a#le to watch how the

price/%olume (V mo%ed after this poit. &he" fially reach the curret mar$et time"

,ll ha%e price le%els set up" $ow how price is mo%i! ad #e ready to trade.

-o first" eed a clear iitial price le%el ad this is how fid it.

start #y loo$i! at the chart ad ot !oi! too far #ac$ i time to fid a ice clear

%olume spi$e pea$ that has a lar!e cadle with it price mo%emet. the chart #elow fid oe" call it (ea$ 3 ad draw a red %ertical lie 3 as a

referece o the chart.

ow let,s uderstad what is happei! o this cadle ad what has ta$e place earlier itime from this red referece lie o the chart.

(rior to the )ie 3 the %olume was low ad price fairly flat" whe price crossed someu$ow %alue the the floor fell out of the price ad the price too$ a #i! drop.

'his oe cadle at lie 3 crosses a price le%el. t,s a price le%el" ot 'F price le%el. 'his

is oe of hudreds of price le%els that exist at this poit i time" #ut we ca,t see ay ofthem so we eed to fid oe the mar$et is tradi! o.

3ll we $ow at this sta!e" is that their is a price le%el i the cadle we pic$ed. 'he cadle

is lar!e ad has may price le%els from 1.145 dow to 1.110. &e ca,t possi#ly

determie a price le%el to use with this may choices.-o" we foud a ice #i! cadle with the hi!hest %olume up to this poit i time ad ow

we eed to fid aother referece poit to arrow our price le%el ra!e.

3ttached 'hum#ails


19/83


3lri!ht" we,%e esta#lished a referece time i space to try ad fid a price le%el. 3t thissta!e we ha%e othi! #ut a price ra!e of the cadle it,s hi ad lo price ad that this

price ra!e had the most %olume for some time.

-o" we eed to !o #ac$ i time o the chart ad !ra# some more data. &e eed a poit i

time where the same rules applied to -tep 1. +id a hi!h %olume pea$ spi$e with some

lar!e price mo%emet. 'he oly catch is that this cadle,s hi/lo price must #e i the sameprice ra!e as our pre%iously chose cadle,s hi/lo price....ot all of it" ust some of it

the less the #etter.

Vertical lie C is draw at such a poit i time. &e ha%e a %olume spi$e ad we ha%e aprice cadle i our pre%iously chose cadle,s price ra!e. 'he closer i time to our first

step,s referece lie the more rele%at our data. owe%er" it is also helpful if we ha%e a

few cadles #etwee our two %olume pea$s as this will tell us much more iformatio"

the them #ei! side#yside.

-o" ow we ha%e a !ree ad red referece lie o our chart. 'hey simply poit to 2 lar!ecadles i time with pea$ %olumes.

&hat we ow $ow is that for some reaso the mar$et has a iterest i these to cadlesmore tha ay other for some time. t almost always poits to a price le%el lie draw i

the sad #y traders where #uy/sell orders exist ad where traders will lauch a trade. r"

you could e%e say all the idicator systems may ha%e used this price le%el for some

decisio.

&hat we do,t $ow is what that price le%el is yet. Cut we ow ha%e a price ra!e. ot

#ad from 2 cadles i time.3ttached 'hum#ails


20/83

Gule ; -tep Cy -tep -tep

ow remem#er" our 2d smaller cadle chose holds all the same results as the first

cadle we chose i that we ha%e a hilo price ra!e i a %olume pea$ that meas a pricele%el exists i the secod chose cadle somewhere.

'he ad%ata!e ow is that our 2d cadle has a much smaller ra!e.

-o we simply draw a hi ad lo price lie from this 2d cadle to esta#lish a hi price le%ellimit ad a lo price le%el limit. Eall them lies E ad


21/83


&e $ow that our price le%el *B-' ed i 5 or 0 as we except o other %alues.

ow we simply wat to fid the price le%el that fits our chart the #est" #ased o the pricecadles at lie 3 ad lie C ad falls withi the price hi/lo of lie E ad


22/83

our price le%els will ha%e eou!h data to #e extremely accurate.

-tic$ with it. 'his will !et ridiculously simple oce you follow alo! for a while.3ttached 'hum#ails

(rice )e%el Gules 8>

Fsta#lishi! (rice )e%els

ce we ha%e our first price le%el esta#lished we the wat to mo%e forward from that

poit i time ad esta#lish a few more price le%els.

Rule :. Locate Price Levels To O/en Mar-et'his is a lesso i readi! the price ad %olume chart.


23/83

+rom the chart icluded with Gule >:

Vertical )ie 3 is the %olume pea$ ad price mo%emet we started with to fid our first

price le%el usi! Gule ;.(rice )e%el 1 at 1.140 is the first price le%el we foud i our Gule ; example.

Vertical )ie C is the ext lo!ical %olume pea$ with a lar!e price mo%emet. (ea$ 3

ad (ea$ C are relati%ely close to each other ad at (ea$ C our cadle is somewhat lar!ertha the rest #etwee lie 3 ad C.

*ore importat our ext price le%el stic$s out li$e a !old fili!.

-tic$ a price le%el lie throu!h the cadle at %ertical lie C it must ed i 0 or 5.

chose 1.100. ow loo$ at how the cadles #etwee Vertical )ie 3 ad Vertical )ie

C cross this price le%el & )J 3' 'F V)B*F- for these cadlesA


24/83

*o%i! forward o the same chart.Vertical )ie E at %olume (F3J E is simply a cofirmatio of our (rice )e%el at

1.100. 'here is othi! here to idicate ay ew price le%el.

-o added cofidece that 1.100 is a solid price le%el.3ttached 'hum#ails

ow $eep followi! the chart alo! ad thi$ it is extremely easy to see how the ext

fall i price occurred ad how easily it is to read it comi!" e%e if we $ow a#out it.

'he chart #elow shows the ext (F3J < with maor price mo%emet at Vertical )ie


25/83

'he price has #ee ho%eri! a#o%e 1.100 ad the iterest shri$i! #etwee %ertical

)ie E ad


26/83

)oo$ at lies a" # ad c #etwee (ea$ < ad (F3J F lies.

'he cadle at lie a is the first lowest %olume iterest price ra!e we cross after

(F3J


27/83

e cadle forward ad we see our (F3J F remais" ad our price le%el stays at 1.045.ow our last cadle was lo!" tryi! to mo%e price #ac$ up from #elow 1.045 to

1.045. terest %olume is less for price to mo%e #ac$ up to 1.045" so this is where we

would wat to eter short at 1.045.,m usi! 1.045 as a short etry for ease of clarity" #ut you may fid it more #eeficial

to actually ope ad close trades o the 4"6"> or 1 price. 9ou eed to watch how

your #ro$er respods" or if you trade li%e" you do,t ha%e to sit there for the etry to #e

exactly 1.045.'he poit is we are eteri! a trade short somewhere close to 1.045.

this mode" where ha%e o defiiti%e lower price le%el #elow my trade" ,m tradi! for200 pips. ,m tradi! li%e" ad if do fid a lower price le%el that,s my exit" or 200

pips. *y stop the must #e lower tha 200 pips ad if you remem#er we had a

ima!iary price le%el #etwee 1.050 ad 1.060" ,m opti! for 1.060 as my stop...15pips. do,t li$e my stops too ti!ht.

3ttached 'hum#ails


28/83

Dump ahead a couple of cadles ad ,m feeli! really !ood a#out this short etry. 'hecadle has hit clim#ed to our price le%el of 1.040 ad the %olume iterest is ot i the

mar$et to !o up pass this price le%el.

*y short trade is oA3ttached 'hum#ails

)et,s $eep !oi!...

J" so price is ow dippi!" %olume is up ad we may ha%e aother %olume pea$

formi!. ere it is o !uts" o !lory.9ou could pull out of this trade ad ma$e 1520 pips. 'hat is a safe moey ma$i!

optio" ad ayoe who $ows me would $ow that ,d #e yelli! at you to !et out of the

trade" #ecause if you ca ma$e 20 pips a day e%eryday" you are i commad of your


29/83

+orex fiacial future.

owe%er" $ow the odds are hu!ely i my fa%our that price will $eep !oi! dow" if !et a pea$ here or %ery soo ad %olume dimiishes if price rises.

'he oly thi! ,m ow ris$i! is a 5 pip loss as drop my stop dow to 5 pips a#o%e

etry.

9ou ca see we ha%e a possi#le price le%el here #ecause we may ha%e a pea$. Gi!ht ow

this price le%el is ust a referece" #ut put it o the chsrt for you to see.


30/83

(ro#a#ly should recat that ad say the price ad %olume wor$i! to!ether shows use%erythi!. was assumi! the price part with the ori!ial words whe writte.

t really does,t matter what the %olume idicator shows. t,s relati%e. 3s lo! as it stayscosistet with price mo%emet" that is what matters a#out the %olume idicator.

3d the pro#a#ly o oe li$es that aswer who read it. $" let,s assume the for a

miute that e%ery trader" #uyer ad seller of +orex is !eerally wor$i! towards eteri!their trades o the same relati%e price actios. f that is true" which fid it is" the as

lo! as you treat %olume ad price actio as oe si!le idicator" the it all wor$s.

'here is a %ery fie lie to cross ideed to start usi! the %olume idicator aloe" withoutloo$i! at what price is doi!.

*y lo!ic #ehid the %olume ad price to!ether is to fid price le%els ad %erify wherethey are. suppose " or ayoe could use ay um#er of other idicators to do the same

#ut fid sice it is so easy with %olume/price to!ether" why use aythi! else?

Bltimately we are tradi! price le%els" ot %olume.

f %olume is ot wor$i! with price it shows up fairly uic$ #ecuase the price le%els will

ot" or will %olume/price show you ay price le%els that wor$. ,%e e%er see the

pro#lem arise" ad it is cosistet. -o ultimately as lo! as ha%e cosistecy" ,m happy.

Volume is pro#a#ly a #ro$er,s tic$s" li$e said does,t really matter. (rice/%olume are

!oi! to mo%e o mar$et iterest #ut %olume will mo%e relati%e to itself with price...soe%e if it is associated with less moey %olume" that less moey %olume will #e relati%e

to price. 'hat is why the life spa of price le%els is short ad they are costatly dyamic.

Volume pea$s with price mo%emets will mar$ a price le%el...ad that relati%ity #eforead after is cosistetly curret with price actio...re!ardless of what %olume really

measures.


31/83

'echically" somethi! li$e the stochastics or ay oscillator idicator has the same

issue. 'he mo%emet of a oscillator is relati%e to the curret price actio #e that 5 pipsor 100 pips...the oscillator does,t care how may pips" ust how price mo%es relati%e to

itself ad where the oscillator is. 9ou ca set price le%els with a oscillator" !et the same

results as you would with the %olume idicator #ut oh" is it paiful to do compared tousi! price/%olume.

Volume (rice )e%els is de%eloped from the old read the tape process we traders usedlo! #efore home computers were at our disposal. date myself" #ut i the old days the

most efficiet way to trade was with price ad %olume.

V()' is !row out of that ad a !reat deal of time ,%e spet with stochastics. 'hemethodolo!y you see here is the %olume/price side of a more defied stochastics tool ,%e

#ee de%elopi! o%er the years. owe%er V()' is a %ery stro! tool as ha%e reali7ed

o it,s ow" whether that is simply #y accidet i applyi! stochastics thou!ht to it" or

,%e su#cosciously ha%e doe what wated to do ad ust do,t eed the stochasticportio to #e as %isi#le as a separate idicator as pre%iously thou!ht.

3yways" ,%e #ee extremely happy with the results.

do,t trade to wi" trade to ear. f you apply this ri!ht" the you should #e a#le totrade with cofidece ad ear moey cosistetly from your trades. ow may trades

you wi" wo,t matter as much as how well you ca trade ad maa!e your #a$ roll.

V()' ears me moey cosistetoy" so does stochastics tradi!. 'o me that is all thatmatters. Eosistet pips.

Dust a word of cautio ha%e ot explaied e%erythi! yet.f you are tradi! this for real" su!!est ot yet. (ractice o fidi! price le%els ad trade

etry/directio" #ut ot li%e trades yet.

)et me !et throu!h this. t,s a le!thy su#ect #ut we are !etti! there.

e thi! you wat to esta#lish are price le%els for the mar$et at least 1224 hours i

ad%ace of where you trade i.e. !o #ac$ i the chart a #it. 'he more dili!ece you put

ito examii! what the mar$et is doi! prior to tradi! ad uderstadi! it" the easier itwill #e to set yourself up for trades successful mo%i! forward ito your trade day.

ext roud of examples ,ll start as a ormal trade day ad !o throu!h some trades as did them. ,ll start as if ha%e o prior $owled!e of the mar$et coditios.

3fter that" ,ll #e !lad to loo$ at your trades ad #e !lad to help. do,t wat to start yet"as may aswer your uestios with the upcomi! ifo.

f you wat to try ad set price le%els for the ;th" ,ll #e !lad to re%iew them if you are

stuc$ or ot cofidet. t mi!ht #e iteresti! to see how much %ariace we !et with


32/83

se%eral people setti! price le%els for a day. 'rust me oce you do this for a few days"

you ca pop price le%els up i ust a few mis....it is super easy" ust watch the de%il i

the details.

V()' 'G3


33/83

V()' 'G3


34/83

FBG/B-< *15 Volume dicator *'4

4. &e $ow the price le%el must itersect #oth cadles at %ertical lie E ad %ertical lie


35/83

V()' 'G3


36/83

V()' 'G3


37/83

'he !ree price le%el lie for ow is ust a referece lie to examie the price/%olume mo%emet after

%ertical lie +. 3s price mo%es away from clim#s" our %olume !oes dow" ad whe price mo%es #ac$

dow towards 1.020 the %olume !oes dow?


38/83

V()' 'G3


39/83

V()' 'G3


40/83

V()' 'G3


41/83

V()' 'G3


42/83


43/83

(rice le%els. thi$ you will see the mo%e a lot #etter with a price le%el. t,s a pretty easy

oe to see at 1.120. ow the price/%olume mo%es should ma$e more sese. 'here,s less

iterest i price a#o%e 1.120...#ut. apolo!i7e if ha%e the price %alue wro!" hard to

see it o my filthy laptop scree


44/83

3 )i%e 'rade FxampleFBG/B-< Da 8 ;pm F-'

t is a#out 6:45pm F-' ad ,m ust setti! up for a trade. ,%e esta#lished my price le%els

hori7otal !ree lies usi! the %olume pea$s/price cadles at the %ertical red lies.

3t this time ,m cofidet i eteri! a short trade either off the 1.080 price le%el" ad if

price clim#s ,ll !ra# aother short trade at 1.085. 'he 1.085 is ust extra pips. put a

exit at the #ottom price le%el 1.065@ ad a -'( at 1:1 ris$/eari!s so 1.105. 'hatstop is really way too hi!h" #ut ,m really ot worried will hit it.

&hat is happei! with price/%olume here is that mar$et iterest is aroud the 1.080.'here is some additioal iterest i price crossi! 1.085" #ut after that le%el iterest i

price !oi! hi!her is much less. (rice mo%i! dow throu!h 1.080 is !etti! the most

iterest. -o" ideally price will rise a#o%e 1.085 ad the fall.

*y orders are placed at close of 6:45 pm cadle so ;pm

3ttached 'hum#ails


45/83

3 )i%e 'rade FxampleFBG/B-< Da 8 ;:00;:15 pm F-'

*y 1.080 short order is missed #ut my 1.085 is short order is opeed whe price

mo%ed up throu!h 1.085. ,m a little surprised #y the stre!th of the price mo%e up past

1.085 #ut ot worried. 'he iterest %olume rise as price mo%ed a#o%e 1.085 isexpected. f was !reedy" mi!ht sa! aother short order here" #ut with 2 ope orders

ad !etti! my #ous order at 1.085 ope" ,m cotet.

3ttached 'hum#ails

3 )i%e 'rade FxampleFBG/B-< Da 8 ;:15;:0 pm F-'


46/83

t,s pretty o#%ious from the momet the cadle opes ad 5 mis ito the cadle that

price has pretty well had it for !oi! up. ,m ust relaxi! ow" waiti! for the dow play.3ttached 'hum#ails

3 )i%e 'rade FxampleFBG/B-< Da 8 ;:0 ;:8ish pm F-'

'he cadle opeed with a #a!" price too$ a uic$ drop. *y 1.080 order is ow ope

ad as the cadle crossed the 1.080 price le%el %olume started risi!. mo%ed my stopdow" o poit of it #ei! way up there aymore" ad decided with #oth ope short

orders ,d mo%e my exit to 1.0;0 this is a easy 25 pip !ai 10 K 15 pips i 2 ordersso !ra# my pips ad !o. 1.0;0 is a ice safe le%el" ot #rea$i! ay ew territory ad it

loo$ed li$e ,d !et out i this cadle so could !o write a#out this trade i ++

+ial -yopsis a fairly typical uexciti! trade. did,t expect the price to mo%e that

uic$ly dow ad !i%e the speed at which it was mo%i!" ust decided to !ra# myeari!s. t would #e #etter to reassess the price le%els ad price/%olume after this lo!

dow cadle ad determie the ext mo%es. 9ou should #e a#le to see how mar$et

iterest was lost chasi! a price a#o%e 1.085 ad that the mar$et iterest was i adowward price falli! from 1.080. this case 1.085 was ust a added

#ous....cau!ht it" so why ot profit from it.

'he 1.080 price le%el was determied from the 2 cadles that the last 2 %ertical red lies

ru throu!h. purposely loo$ed at 6:45 to defie ad ustify a price le%el at 1.080" sice

a price le%el o#%iously fit li$e le!o here. ,%e !ot my 2 %olume pea$s ad the cadles

itersect at oly oe price that eds i 0 or 5

'he 1.085 price le%el was determied much further #ac$ i the chart at the 4th/5th

%ertical red lies from the ri!ht of the chart. 3!ai 2 pea$s" oe choice for price le%el.


47/83

foud 1.085 earlier today aroud >:0 F-' ad had traded that short it was %ery

similar to this last trade documeted" i fact almost a exact duplicate except with oly

the oe etry.

-o that,s how made 40 pips today usi! V()'" hope you ca see it is a pretty strai!ht

forward ad calm process.

'he secret is i those price le%els" price/%olume mo%emet to!ether aroud those price

le%els ad most importat the de%ils i the details.

opefully" you ca see price le%els are ot a sciece. 'hey ust ha%e to #e ustified" ad

they fit li$e le!o. ...sap ri!ht i.

3ttached 'hum#ails

t does,t matter what %olume measures i tems of #ro$er tic$s" trades" dollars" etc aslo! as it remais cosistet with price. &he" say cosistet" mea that the #ro$er is

always usi!" say trade %olume" ad does,t switch it up half way throu!h your day. -o"

ot li$ely that the #ro$er is !oi! to cha!e what they measure i %olume ay time soo.

(rice ad %olume mo%es to!ether do mea somethi!. Volume is a relati%e measuremet"

o differet tha ay oscillator idicator. Volume le%els do ot tell you how much

price mo%es" price mo%es tell you how much price mo%es.

'he reaso this is called Volume (rice )e%el 'radi! is #ecause whe price mo%es

towards/away from a price le%el" %olume iterest i that price le%el will icrease ordecrease.

f you do,t li$e %olume" you ca use ay relati%e idicator to do the same thi!.owe%er" use %olume #ecause it is so simple ad uic$...ad most of all" it wor$s

relia#ly ad cosistetly...ad i tradi! for a li%i%i!" that is what you wat the most.


48/83

ha%e o dou#t people will see %olume ad poopoo all o%er %olume. Cecause all they

see is %olume ad e%er loo$ at the relatioship #etwee %olume ad price to!ether adhow it wor$s whe crossi! differet price le%els.

-o yes" you are correct %olume #y itself is useless. owe%er" this forum is ot a#out%olume #y itself.


49/83

&evil In The &etails < #=/ert Info

ha%e discussed oe way to set price le%els. &hat ,m a#out to discuss here is how toread price/%olume. ,%e explaied %olume = iterest.

(rice is our compass. -o price/%olume as a com#iatio poit at mar$et iterest.

ow" let,s cosider e%erythi! pre%ious to this as the #asics. ow as experts i V()'

we will ope the chart up ad read it li$e a #oo$. 3s such" our focus ow is to read

price/%olume as it mo%es aroud a price le%el.

Cest way is to ump ri!ht i ad start. ,ll start with a 20 cadle seuece i recet

history.... ust pic$ed it #ecause it is the most recet.

-o" fresh chart FBG/B-< *15. 'his is a li%e chart so the chart picture may cha!e a #it

as we pro!ress. ,m 7oomed way i.

3ttached 'hum#ails

+irst thi! eed is a price le%el. 'he price le%el is ust a referece lie that price/%olume

mo%es aroud ad reacts too. ce the price le%el is esta#lished we ca start readi! the

price/%olume.

-o" to fid my first price le%el" pic$ed out pea$s ear the left side of the chart. wat

to read the cadles from left to ri!ht" ad wat to focus o fidi! a price le%el that fits

the cadles o the ri!ht side of the chart.

drew strai!ht %ertical red lies from %olume pea$s spi$es throu!h there

correspodi! price cadles.


50/83

the drew a hori7otal price le%el at the oly price that eds i 5 or 0 that !oes

throu!h all cadles. +9: if the price le%el arrowly misses a cadle" o #i! deal.

3ttached 'hum#ails

3lri!htA ow the fu part. )et,s start readi! the chart from the first price cadle to the

ri!ht of our ri!ht most %ertical red lie where the !ree up arrow is" ad pro!ress cadle

#y cadle. 1>:15 cadle Da >

3t the %olume pea$" price came up throu!h our price le%el" this mo%emet across a price

le%el typically !eerates more iterest %olume hece this is why pea$s !eerally slice

throu!h a cadle. *ore iterest %olume #ecause !eerally the most orders will #eexecuted o at the 5 or 0 price ad i this case 1.055.

Eadle 1 1>:15: :45:


51/83

throu!h the upper price limit we saw i cadle 2 of 1.060. &e,ll eed to adust our chart

with a ew price le%el at 1.060.

3ttached 'hum#ails

&e,%e had to add a ew price le%el at 1.060. 'he %olume pea$ is small" #ut what is

really defii! this price le%el is that we,%e had cadles ust pass throu!h this le%el" #ut

othi! else.

Eadle 6 20:0:


52/83

Eadle 11 21:45: Bp. (rice has #ee droppi! for the last cadles ad iterest

%olume has pic$ed up. (rice touches the 1.060 le%el ad %olume pea$s" so that is as

expected. 'he price le%el is at 1.060 ad this is where the iterest is at. Hoi! dow.

Eadle 12 22:00:


53/83

Eadle 16 2:00:


54/83

Eadle 21 00:15:


55/83

Eadle 28 02:00: Bp. 'here we !o. Hood solid price mo%e up" assume it is a pea$. -et a

price le%el at 1.040. *ar$et iterest way up" o woder" we are headed #ac$ to wherethe mar$et lo%es it at 1.050.

3ttached 'hum#ails

Eadle 2> 2:15: Bp. (rice is up ad iterest slippi! as we ear 1.050. 'his slippa!ecould #e the result of pulli! away from 1.040 price le%el. othi! so far to assume that

we wo,t cross 1.050" could #ail from lo! trades if s$ittish. Gis$ ta$ers throw a stop i

at 1.05 ad stay i lo!.

Eadle 0 2:0: Bp. -till ca,t cross 1.050. terest would ha%e pea$ed if we crossed

1.050" so it seems mar$et iterest is fadi! as price mo%es away from 1.040 price

le%el.3ttached 'hum#ails


56/83

,ll stop here as do,t wat to start to si!al trades.

&ell that was 0 cadles ad that is how read the charts with price/%olume mo%i!

aroud price le%els. 'his example was,t !reat #ecause our ra!e was fairly small adprice le%els were poppi! up close to!ether. F%e so" we had %ery clear pip opportuities

to sei7e o.

f you read throu!h those 0 cadles" you ca see how am traslati!/ustifyi! the

price/%olume mo%es relati%e to the price le%el. Geally" oly 1 cadle i the 0 that was

tric$y #ut #y stic$i! to o%erall mar$et iterest ust stayed the course. therwise" thereis,t a whole lot of room to iterpret the price/%olume mo%es ay differetly.

9ou ca also see as we !et ear the ed" how price le%els ta$e shape ad form aroud

price/%olume mo%es...ad or do,t exist. 9ou ca see as we eared 1.040 there was oprice le%el o the way dow" if iterest i price was to $eep !oi! dow there would ha%e

#ee a icrease i iterest %olume" especially if o the way dow we crossed 1.040.

Cy that ot #ei! there" price had to start !oi! up. 'here was o other way ad thecadles ust #efore were idicati! the mar$et had o iterest dow here aroud 1.040.

-o" a!ai the upward mo%e was loud ad clear.

'hi!s are setti! up. Hi%e it a shot o a demo accout.

1. )i$e this" with price le%els@ years. t comes from 20 years of refiemet for me i

uderstadi! how to use it properly. 'his system is as old as the tic$er tape. *yrefiemet has come with the use of price le%els" uderstadi! mar$et iterest aroud

those price le%els" ad wrappi! it aroud my head.

2. ma$e 20 pips a day that,s my pedestal ad preach to ayoe who will liste ad


57/83

wats to ma$e cosistet moey i +orex. put %alue i my 20 pips" ot i how may

pips ca !et. ca ma$e 20 pips a day with *'+ -tochastics" #ut usi! V()' is oh my

!awd less stressful ad way more cosistet. -ome days ma$e a lot more tha 20 pips"ust #ecause the mar$et pulls me alo!.

)i$e last i!ht whe was writi! a#out 0 cadles" did,t aticipate ,d lead ri!ht ito a

mar$et that was !eari! up for a ta$e off. f the mar$et is !oi! to had me a to of pips,m !oi! to ta$e it. V()' ma$es it easy to see it. 9esterday ito today was pipatasticA

. 9es" could" #ut wo,t. 3t least ot at this sta!e. ha%e a lot of reasos for this" oeof which are to pro%e how succesful this is for me. ,d much rather disect trades or show

you how !ot there" so you ca trade succesfully. Dust for fu" may#e later" mi!ht ust

for lau!hs do it" cu7 thi$ it is eat. +or ow" my missio ad time is to show people

they ca successfully trade.

'he simple aswer" you ust $ow whe they are rele%at ad whe they are ot.

'here,s o fixed life spa o price le%els ad o rules li$e the older the price le%el is the

more irrele%at it is.

9ou ust ha%e to let the mar$et tell you what price le%els are rele%at.

'he ice thi! a#out V()'" is that you ca wipe the chart clea of price le%els ad start

a!ai" #ecause the mar$et will always $eep telli! you where they are.

ted to wipe out the close to!ether oes where price is ow ad ust $eep the most

rele%at i the mar$et to where am ow. ,m a 20 pip/day trader so do,t eed to $ow

a lot of (),s.

9ou could come up with a lot of differet strate!ies with this. ,d ust say" if you are

!etti! cofused" do,t #e afraid to wipe the slate clea ad !i%e yourself a fresh start. t,s

e%er a #ad idea to chec$ your wor$ ayways

(rice/Volume as it relates to price le%el.


58/83

to !o up. 'he mar$et is testi! 1.060" so a price hi!her tha 1.060 seems reasoa#le"

#cause if the test succeeds it will cross that le%el.

ca,t emphasi7e eou!h how price/%olume is tied to price le%els. t is,t cadle si7e. 3

small cadle ca !eerate #i!!er %olume crossi! a price le%el see cadle 20" ad

li$ewise a #i! cadle ca !eerate small %olume whe it is owhere ear a price le%elsee cadle 12.

L Dust remem#er all are relati%e to each other price/%olume ad price le%els.

)et me $ow if that ma$es sese" #ecause it is a importat o#ser%atio you #rou!ht up.


59/83

'hree firs cadles wit red arows formed price le%el at 1.250

Eadles 1" 4" 10 formed price le%el at 1.2;0

Eadle 2 up shows that mar$et li$es to #e uder that le%el 1. 2;0.Eadle 11 M


60/83

Ehart update3ttached 'hum#ails


61/83


62/83

clim#i!. Eadles 11"12 all this is sayi! o #rea$out" still stuc$ o 1.2;0 as a limit.

+rom cadle 6" >" 1" all clim# #ac$s i price to 1.2;0....#ut ca you see that each oe isdecreasi! i %olume to the oe pre%ious. Volume wise cadle 6 is less tha 5@ > is less

tha 10" ad 1 is less tha 10"11"12. -o there is o #rea$ out up that will happe.

,d ust #e watchi! this thi! for ow.

FO' E3G'....3 little after this chart i the ext chart you should #e a#le to catch the 1.250 to 1.2;0

mo%e. t,s a simple trade #etwee our price le%els. 'he %olume tal$" that pea$ whe price

drops li$e a #om# cadle 5 ad hits 1.250" what is it cofirmi!? ur price le%el at

1.250. (ea$s exist at price le%els.

6 &he price clim#s ad %olume rises" cofirmatio of the price le%el ad the iterest

up ad away from from 1.250 !o lo!.

; &he price drops ad %olume drops" swift $ic$ to your #utt to !o lo!.> 3d loo$ where your cadle crosses o the ext %olume pea$...1.2;0.

+irst o# as always is to fid a price le%el. ext %olume pea$ alo! ad we ed up with a

price le%el at 1.>000. ot the #est for accuracy" #ut it !i%es us a starti! poit" we ca

uic$ly fid where the mar$et was at o this chart.

'he price le%el was foud #y putti! !ree %ertical lies throu!h 2 %olume pea$s. 3

clear %olume pea$ is oe where the %olume is less o #oth sides of the %olume #ar i

the cetre. deally we wat 2 pea$s that will oly !i%e us 1 choice for a price le%el. (ricele%els always ed i 0 or 5. this example" the price le%el ca oly #e 1.>000.

deally the price le%el lie will pass throu!h #oth price cadles where our %olume pea$s

are" #ut sometimes li$e i this example" we ha%e to ta$e a #est fit approach.3ttached 'hum#ails

Poom i o the chart.

&e ha%e oe loosy price le%el set up for a referece poit. 'he de%il is i the details" so


63/83

lets examie some price/%olume mo%emet.

1 Eadle 1 mar$ed o chart. -o" we do,t $ow aythi! a#out mar$et iterest a#outthe price" so let,s start ma$i! otes o what we do see. (ri%e is dow" %olume is dow

from pea$. 'his is a ormal mar$et reactio %olume dow after a pea$ ad setti! a

price le%el. terest after all is at the price le%el. ote that price mo%ed dow towards theprice le%el ad %olume dropped. we ca,t iterpret aythi! more from that. )ot,s of

assumptios a%aila#le" #ut let,s i!ore those.

2 'he secod price cadle mo%es dow ad the %olume !oes dow. -o price is mo%i!

away from our 1.>000 price le%el ad iterest is less. -o" is price !oi! up" away from the

price le%el ha%e less iterest tha price mo%i! dow towards price le%el? oted.

(rice up ad %olume up hi!her tha 1 ad 2" could #e a pea$" we would,t $ow

yet if this was real time" so we,ll preted we are assumi! it is a pea$ as we would if it

were real time. -o the %olume rise ma$es sese #ecause we eed to draw a ew price

le%el. &e $ow the price le%el must #e a#o%e 2" otherwise our %olume pea$ would ha%e#ee at 2. 3d the price le%el !oes throu!h . 'hat puts it either at 1.215 or 1.220.

3t this sta!e where we oly see " we ust ha%e to pic$ oe ad wait for 4 to tell us.3ttached 'hum#ails

'he cadle ad %olume idetified o the chart #y arrows are off. 'he actual %olume to

match the cadle is the oe to the left. Eout from the ri!ht side of the chart 6 i from

ri!ht. -hould ma$e sese ow. 'hat,s why always draw lies #etwee my cadles ad%olumes....easy mista$e to do.

4 'he %olume of 4 is less tha so ow we coformed is a pea$. 4,s price ismo%i! up ad %olume dow" which meas that the iterest is !etti! wea$er as it should

after a price le%el as the price mo%es away from the price le%el. 'his meas the price

le%el must #e #elow 4 so at 1.215. (rice le%el esta#lished.

3''F':


64/83

price ad drops i %olume we would expect that if price dropped towards the price

le%el" %olume would rise. -o" is iterest starti! to mo%e away from price le%el? 6

cofirms it.

)H F'G9 'EF

; is cofirmatio of 5 ad 6. (rice is up ad %olume is up. ow we ha%e our #estcofirmatio that price wats to mo%e away from this price le%el. -tic$ a lo! trade i as

close to the close of ; or ri!ht at ope of 8.

)o! o 1.220 or a#o%e-top o 1.1>0 we,ll mo%e up after" oly for etry

Fxit tar!et 0 pips 1:1 for etry/stop 1.250

3ttached 'hum#ails

8 ad > are price up" %olume up. 9ou could exit at > ear 1.250 as that,s a !ood

trade or ha! o. &e ha%e to assume > could #e a %olume pea$" so should treat itaccordi!ly that 1.245 or 1.250 may #e our ext price le%el.

*o%e the stop to 1.210.

10 Fxit trade" price up" %olume pea$. ew price le%el cofirmed o 11. 0 pips" that,s

!ood to me. 9ou could ride this trade to 11" #ut the for sure you eed to exit whe theew price le%el is cofirmed at 10 after 11 closes.

'hat eds this trade.

3ttached 'hum#ails


65/83

'he Ci! (icture V()'

&at to $ow how to ma$e pips i a ra!i! mar$et?&at to $ow which way to trade for a #rea$ out?&ell here you !o:

'a$e a loo$ at the #i! picture. 'he chart #elow has price le%els@ #lue low" redmiddle" !ree top. Fach pea$ %olume has #ee idetified with oe of coloured

%ertical lies. 'hese %ertical coloured pea$s" correspod to the price le%el they affect. -o

a %olume pea$ where a price cadle itersects a #lue price le%el lie will ha%e a #lue%ertical lie.

&hite %ertical lies price cadles cross 2 price le%els" so i!ore those for this example.

3ll price/%olume mo%es are relati%e to each other. 3lways remem#er thisAVolume is ot idepedet from price mo%emet always to!ether.

-o from this" the rest is easy:!ori! the white %ertical lies....ad mo%i! from left to ri!ht

2 red %ertical lie %olume pea$s are lower tha the ext 2 !ree %ertical lie %olume

pea$s mar$et iterest lo!'he 2 red lower tha !ree mar$et iterest lo!

'he 2 #lue lower tha red ad !ree mar$et iterest lo!

-o ideally" you would #uy lo! o price cadles at or #elow our #lue price le%el. Cut at

red ad !ree price le%els you ca still #y lo!" as that is where mar$et iterest is. -o"ow we ca ra$ our price le%els:

Clue lo!s reuire lowest stop low ris$" optimum lo!

Ged lo!s

Hree lo!s we trade to #rea$ out reuire hi!hest stop hi!hest ris$" poorest lo! returs

-o you ca $eep followi! this patter alo! the ra!e" where the !ree price le%el has


66/83

the hi!hest %olume iterest ad the #lue le%el has the lowest %olume iterest. 'his is a

lo! mar$et iterest. Jeep tradi! lo! from the #lue ad you ust wal$ the %olume up

throu!h the #rea$ out at the ri!ht of the chart.

Volume" (rice ad (rice )e%els...V()'. t,s all relati%e.

3ttached 'hum#ails

ere,s a #i! picture V()' with a mar$et swi!.

ur hi!hest price le%el !ree has the lowest %olume" so mar$et direct is short.'his flows throu!h red" #lue ad purple" with purple price le%el ha%i! the hi!hest

%olume

'he mar$et swi!s" where the ext purple pea$ %olume is the lowest" so time to !o lo!.

&he we hit the !ree price le%el" %olume is hi!hest....lo!.f we ca #uy lower tha !ree price le%el" say at the red price le%el lo!" so much the

#etter.

deally we are #uyi! lo! at the lowest price le%el" #ut if we are i a lo! mar$et ad

price is risi! ad mar$et iterest is still lo!" the $eep #uyi! lo! at each price le%el.

9ou may miss the optimum lo! price le%el #uy" #ut do,t miss the rest.

-tops are always 1mi or 2 max price le%els away....tar!et pips at least 1:1 to stop.

'his is at etry" you ca exit at ay time with a pip !ai. 3 pip !ai is always a wi. 9ou

should always mo%e stops to !et pip !ais...e%e if you miss the #i! oe.


67/83

,m %ery happy with ;20 pip trades. tar!et 20 pips a day ad it ets me a#out ;500 pipsa year. 'hat,s my salary portio of tradi! which trade with hu!e disciplie.

ow the other side of the dow time i#etwee" scalp. will discuss this with V()'shortly as scalpi! is ust plai fu ad if you ca #e cosistet with it ad V()'" will

ma$e you cra7y pips...ad e%ery i!ht scalpi! you will fall ito a cadle that will ust

shoot off ad !ra# you 20"0"50"etc pips.

+or example" scalped for a#out hours o FBG/B-< *15 !ra##i! 2 pips" simply #ywaiti! for a cadle to rise a#o%e or #elow a price le%el. t was a %ery ti!ht ra!e" ad 2

pips is all that was #ei! offered. made 15 trades" some were dou#les or triples o thesame cadle" ad oe cadle slid dow 25 pips with 2 shorts o it. -o i that #rief time"

made close to 60 pips ad oly lost oe trade with 0.2 pips.

&hat" ,m tryi! to say i a roud a#out maer" is far prefer to !ra# small !lo#s of

positi%e pips #ecause they ed up #ei! lar!e pip totals...ad you are always wii!.

trade ay time...scalpi! also let,s you do that. prefer to trade whe wat to trade

rather tha stayi! up til 4 am. fid tradi! !et,s to #e a real !rid if you are forced to

do the i!ht shift....especially if you $eep your day o#A

-afer to side step the first opei! day for a few hours after the wee$ed or holiday" ust

to let the mar$et !et !oi!.

Eleai! V()' su#ecti%e. will typically wipe my chart clea whe start a trade

roud usually trade for 25 hours ad the ta$e a lo! #rea$ i#etwee. 'here are

times ,ll tur o my *'4 ad the etire mar$et lies up with my price le%els from


68/83

#efore...so these lea%e o.

f a price le%el is i my way ad/or does,t ma$e sese to my curret trade roud... wipe

it. 'he mar$et will put #ac$ our price le%els" so ha%i! more tha say 5 acti%e i a traderoud is a#out all you eed. &he you eed price le%els o a ru up or dow...ust add

them.

VPLT Live Trade #=am/le

FBG/B-< *15

1 3fter a %olume pea$ there is always a drop i %olume iterest. ere price !oes up

ad away from our price le%el of 1.2>50. terest is sli!htly less" #ut at this poit there is

o way to $ow where the mar$et is headed. &hat we eed to wait for is for the mar$et

to tell us how it will mo%e aroud our curret price le%el" or where the ext price le%el is.3ttached 'hum#ails

2 (rice rose ad iterest rose. 'his meas that the mar$et has more iterest up i the

1.10 le%el. t is possi#le that this is a ew %olume pea$ ad that could ma$e 1.10 a

ew price le%el. &e will ha%e to wait for our cadle to close ad the we should #ea#le to ma$e some decisios if we !et a ew price le%el.

3ttached 'hum#ails


69/83

&e ha%e esta#lished a %olume pea$ at 2. ur ew price le%el is 1.10. -o mar$etiterest seems to #e far less at this ew price le%el.

'a$e a step #ac$ ad loo$ at 1 to to!ether...price up" iterest dow. 'he o%erall

mar$et less iterested i 1.10.'a$e a short positio as hi!h a#o%e 1.10 as we ca" i the ope 4 cadle is fie. o

matter what" ta$e a short at 1.10.

9ou ca ha%e a lot of fu scalpi! #y ta$i! short positios whe the price le%el risesa#o%e 1.10 ad exiti! #elow 1.10....ad ma$e some extra pips as price mo%es

throu!h the ope cadle. Jeep to the o%erall short mar$et" so o lo! trades.3ttached 'hum#ails


70/83

4 Casically o cha!e i mar$et iterest or price. )oo$i! at all 4 cadles ad %olumeto!ether" still a short mar$et. -o e%erythi! holds true from .

deally" we will see some rise i price ad less mar$et iterest. 'his will allow us to add

#etter short positios. owe%er" 1 short positio is fie if that is all you wat to trade" aslo! as it is at 1.10 or hi!her.

3ttached 'hum#ails

5 (rice up" iterest lower. t is ust pips i the poc$et. 9ou should ha%e at least 1 short

etry at 1.10 #y ow. &he price drops" we wat %olume up. &he price rises" we


71/83

wat %olume dow. Fxit....10 pips is !rad. &atch the price %olume...#eware of a

possi#le %olume pea$" that may ed our dowward mo%e.

3ttached 'hum#ails

6 3d there we ha%e it. Fasy 10 pips. had 2 scalps ope ad a third with a 1.00short tar!et...i all it was 28 pips after spreads...ad that is my day of tradi! doe 20

pips. *y scalps wet a lot #etter tha expected.

3ttached 'hum#ails


72/83

hope rui! throu!h a li%e trade sessio li$e that was a lot easier to follow. ,ll do

plety more i days to come.

9ou ca see how #y focusi! o #oth idi%idual price/%olume mo%es ad the collecti%e

mo%e up/%olume dow" this was a easy short mar$et mo%e to fall ito..ad literally that

is all we do" fid the price le%els ad follow price/%olume.

VPLT Live Trade #=am/le

FBG/B-< *15

1 )oo$ #ac$ 2 cadles from 1.


73/83

'he mar$ets are #ei! ice ad easy toi!ht. (rice dow" %olume up...shortA Cetter to#e i a#o%e 1.00. f #ecomes a %olume pea$" it will simply cofirm our 1.00

price le%el.

3ttached 'hum#ails

4 o surprises. *ar$et did exactly what it told us it would do. exited at 1.2>0 with 2

short trades. li$e to play it a little safe.3ttached 'hum#ails


74/83

Dust pea$ed at the chart....we could ha%e $ept !oi! short...here,s a pic. ope you eoyedthese 2 trade sessios. ow !o practice some V()'.

3ttached 'hum#ails


75/83

'here are a lot of mo%es i price/%olume that #ecome reco!i7ea#le.... do,t wat to say

patters #ecause the people #lidly trade patters ad that ca #e da!erous. owe%er"

these reco!i7ea#le mo%es will !i%e you a starti! poit" or ma$e you dou#le chec$ yourpositio. 'he most commo of these reco!i7ea#le mo%es is the %olume drop #efore ad

after a %olume pea$...i li%e tradi! it ca !i%e you a defiite ad%ata!e to either #ei!

i/out of a trade. $ow that is li$e sayi! the s$y is #lue" #ut whe i a li%e trade"you,ll #e ama7ed how helpful that $owled!e is.

,m ot usi! aythi! other tha *15. 9ou could use multiple time frames" #ut at thissta!e thi$ it would add a layer of complexity we really do,t eed. ,m a *'+

ad%ocate" ust so you $ow.

'he li%e trade examples pu#lished" foud %olume spi$es ad a price le%el or two.ot e%e 6 hours #ac$. recommeded 1224" to !et you practici!" #ut whe you !et

!ood at esta#lishi! price le%els" you ust eed a starti! poit esta#lished ad !o. )oo$

at my last two li%e trades ad ,m really starti! those trades from the last %olume pea$

cadle 0. ta$e a loo$ #ac$ a#out 45 cadles for a #i!!er picture" #ut ,m starti! toplot the mar$et from 1. ow far you !o #ac$ is really a#out !etti! a feel for the

mar$et....,d certaily recommed whe starti! out you !o #ac$ the 1224 hours for!ood practice....especially if moey is o the lie.....a little extra wor$ reaps the rewards.

V()' +aili! (rice Elim#

Bsi! the chart #elow the !ree tred lies o price show risi! price. 'he !ree tred

lies o %olume show risi! %olume. 'he areas mar$ed 'ail is where the %olume

drops off. 'his is a sure si! that clim#i! price is faili!. 'hat is oe way to loo$ at thischart.

the price" the tred lies follow a price up. the %olume" the tred lies seem tosupport a clim#i! price ad %olume seems to !et wea$er whe price drops.

3ttached 'hum#ails


76/83

%ame chart as be"ore only this time I put in - red price and volume trend lines.@ocumented re"erence

The "irst priceAvolume seems to support an upward price move, since volume is gettingless as price goes down. You could de"initely get triced here into going into a long

trade, as low as you could below *.--6+, you would recover later as you would see the

maret turn to short "rom both the volume "alling o"" the priceAvolume climb that "ollows(shown in previous chart, or with what happens ne9t.

The second price trend line is relatively "lat, you could give it a little up trend, but

certainly no down trend. Meanwhile volume slides down. This is the maret notinterested in this higher price...a small ceiling around the *.--5 price. ;ere is a de"inite

short entry at *.--5 or anywhere above our price level o" *.--6+.

The -rd priceAvolume trend lines seal the short deal. #ven i" you ignore the price drop

and "ocus solely on the last - candles climbing, volume is not there to support the price

climb. I" the maret had any interest in going up, the volume would have increased withprice, at best volume stays "lat.

%o, taing all - groups together>The "irst priceAvolume group is the end o" the previous long climb. %till some maretmomentum trying to move the price higher.

The nd priceAvolume group sets the ceiling o" upward price movement and gives all in

the maret notice...!that0s it!.The -rd priceAvolume group is the gathering o" short orders at *.--6+ and then the price

will drop.


77/83

Now don0t go e9pecting the maret is going to drop +1* pips every time the maret

wants the price to drop. Not on this chart but soon a"ter, the price drops *1*+ pips and

then the priceAvolume turns again and goes into a steady climb. You grab your pips andtrade with the maret....not what you "orecast the maret will do...what the maret is

doing.

=ttached Thumbnails

V&7T 1 = Tough /ne

;ere0s a tough one to catch, but the maret does tell you....so long as you don0t createbias "or one direction and listen to the maret. It even "ooled me while I was writing this2

There loos to be a lot o" support "or a price climb on this chart. $ising price, rising

volumes.

=ttached Thumbnails


78/83

There is no doubt support "or a climbing price to *.--B.

'andle (* is o" interest, i" only because volume is so low at *.--B. 'ertainly the "all in

price ne9t to it should be e9pected. 'andle (* is at the end o" a typical !tail! that I spoewrote about earlier where price is climbing and volume "alls o"" at the end o" the price

climb.

'andle ( crosses *.--B with a volume pea. This price level seems strong as there is

growing volume to this pea, but what "ollows the pea is a drop in price. ;ere youmight enter a long trade and liely get stopped out by candle (- i" you didn0t bail at the

previous candle be"ore (-.

'andle ( to (- is a maret supporting the *.-55 price level. =t the very least you

should be scratching your head at the volume spie o" candle (- being so high when itdoesn0t touch *.--B. Instead it, "ell climbed through *.--5+ and "ell through *.--5. Co

bac to candles (* and ( and this seems to mae a little more sense.

%o candle (4 loos lie a breathrough up. =nd it is, this priceAvolume is supporting a

maret to go "rom *.--5 to *.--B. This is where you need to "ocus on what the maret

interest has been on *.--B...not very strong. 7ie candle (* and lie candle (....candle (4 should be "ollowed with a price drop....and it is (not on chart.

This is one that will liely "ool you because so much bias will be seen on the price climb.

;owever, i" you thin about this long enough, you can see the top price weaness.

3ttached 'hum#ails


79/83

Dust wat to ma$e a few commets studyi! this system.

1. f the #ar mo%es ad %olume low" it is a si! of traders ta$i! profits. -tro! si! of

re%ersi! tred.e possi#le explaatio of this pheomeo is that traders close trades ad do,t ope

ew cotract.

2. Car small ad %olume hi!h meas that mar$et is !oi! to mo%e. t is li$e race car o

the race trac$ !assi! up for the si!al to start ad thrust.

. -pud has metioed that V()' is relati%e. Cy that he pro#a#ly meas the %olume adprice are relati%e ad you should also read the %olume ad price i a #loc$ of few #ars.

9ou ha%e to refer to other surroudi! #ars ad see what the mar$eti! is tryi! to do.

4. +or 100 pips depedi! o mar$et sessio" it will ta$e you 2 hours of tradi! i

a%era!e. +rom my statistical studies" if you aim for 50 pips or more" you will eed to

trade 2 times" oe etry for 20 pips ad the other oe etry for 0 pips. r" etries of15" 15" 20. t all depeds o the mar$et sessios you are tradi! i.

5. &he the mar$et is i tredi! mood" it will ta$e 12 hours to settle. 'he you caread the chart ad do your aalysis to determie the ew ().

6. Volume is the mar$et,s terest" it is also the mar$et,s tetio. )ear to read it ad

you ca !et ito the mid of the mar$et. e%er !oes a!aist its terest ad tetio or itwill draw moey from your accout.

ope this summary helps some oe ad loo$ at this V()' from aother achor.


80/83

,%e edited the first post" to hopefully pro%ide a clearer focus of what Volume (rice )e%el

'radi! is ad meas. fear that some people readi! this forum may miss theimportace of the price le%el i the title" ad ust as true may ha%e ot clearly

icluded i my explaatios the importace of price le%els ad their relatio with

%olumes.

ow %olumes ad price react to a price le%el is the $ey to succesful tradi!. Volume

mar$et iterest will #e hi!hest at a specific price le%el ad ted to ra!e aroud thisprice le%el sustaii! hi!h %olumes. &ea$er price le%els" will ha%e less %olume mar$et

iterest ad price will ted to #e more %olatile" #ouci! all o%er ad mo%e throu!h

these wea$er price le%els. 'he simple way to ma$e pips is sei7e the opportuity of tradi!

to ad from the stro!er price le%els.

3 price le%el itself is ot exact. t is ar#itrary" a ra!e. 'hou!h there is si!ificatly more

iterest aroud the 0 ad 5 prices 1.00" 1.05" 1.10" etc" so it is prudet to

focus our price le%els o these prices. 'he secod tas$ is to dtermie where the pricele%els are ad the which price le%el teh price is attracted to the most #y loo$i! at

price/%olume iteractio.

*y future explaatios ad examples will focus more o explaii! this iteractio" as

#elie%e this is where some cofusio lays. 'here are also some %ery specificprice/mo%emets to price le%els that are extremely cosistet e%e patter li$e" that

may help traders who prefer a more systematic approach to tradi!.

'here is a systematic approach you ca ta$e to esta#lishi! price le%els. 'he ice thi!

a#out doi! it this way" is that you almost always fid the perfect price le%el for a trade

etry. Garely is the ta$edow !reater tha 5 pips ad will rarely !o #eyod 1015 pips" ifyou ha%e the price directio ri!ht from the price le%el.

&e $ow that at e%ery %olume pea$" the %olume after the pea$ is always dow this is a!i%e truth ad must.

'his price cadle after the %olume pea$ actually carries a lot of meai! to (rice )e%el

call it the


81/83


82/83

'he writi! i the chart should allow you to see how all this iteracts.

3ttached 'hum#ails

'he iteractio is this:

Volume mo%es hi!her or lower.

(rice mo%es hi!her or lower.

Volume is lower the futher price is away from a price le%el util price is attracted to aew price le%el" the %olume will icrease ad price mo%es towards this ew price

le%el

)oo$ at the chart posted i (ost R4:

+rom 8:00 to 11:0 %olume declies" so %olume mo%es lower

3s %olume mo%es lower" price mo%es away from 1.00 our price le%el o the chart

+rom 11:0 to 12:45" %olume mo%es hi!her.....so price is attracted to 1.00? " ahi!her price le%el? 9es

-o you trade lo!" loo$i! for a ew %olume pea$" which will form a ew price le%el"

that will #e hi!her tha the curret price.

f the %olume !oes dow ad price !oes dow?


83/83

you ha%e room to play. f you ca,t fid a price le%el dow here" or it is way dow... the

you loo$ to #ail at the #est opportue time...do,t !o #eyod 20 pips loss.

'ips:

Volume does ot determie directio of mar$et price aloe

(rice le%els ad %olume stre!th is where price will mo%e tooF%e thou!h price le%els cha!e ad price mo%es" loo$ for where price is attracted too

ie. what is %olume doi! do,t loo$ at e%ery price mo%e as this is it" mar$et is !oi!

to !o way dow....ust loo$ at each small mo%e as it happes ad e%aluate...lots of smallmo%es = #i! mo%e.

'he thi! a#out V()' is that it tells you what is !oi! to happe ext...ot 2 hours from

ow.....ext. f you !et ahead of yourself ad start forecasti! ad !uessi!" the you areo lo!er V()' tradi!....you are forecasti! ad !uessi!. V()' is ow tradi!. ot

historical" ot forecasti!. V()' will" if you are payi! attetio" ad read it ri!ht" tell

you exactly what the mar$et is !oi! to do to the ext price le%el.

Volume

(rice&here is price? &hat price le%el is it ear? &hat is %olume doi! whe price is ear/at

this price le%el?

Ho #ac$ to the chart at (ost R4. Dust loo$ at the !eeral price mo%es #etwee price

le%els ad what the %olume is doi!. (rice #rea$s away from oe price le%el ad !oes to

the ext...what does %olume do? ,%e porposely spaced out the price le%els i the chart

for %isual clarity" price le%els do exist i#etwee

Volume is relati%e. -o you ca actually trade these #i! price le%el !aps as they are o the

chart ad focus oly o the hi!hest %olume pea$s. Cut the de%il will always remai i thedetail i#etwee" to $ow here price is headed.

1020 pip swi!s are fie. 9ou ha%e to !i%e your trade some room to mo%e...price casteer li$e a #i! #oat" the tur is made #ut the #oat wo,t ma$e a cha!e i directio ri!ht

away. ere is where you !lue your face to %olumes. ,ll !et hit with 1020 pip swi!s ad

ca usually reco%er from a #ad trade with less tha 10 pip loss as price swi!s i a

cadle. ,ll stop out at 20 pips a#out 140/50 rades. ,ll stop out a#out 10Q of the timeuder 10 pips. ,ll oly see swi!s !reater tha 5; pips ...may#e 1015Q of the time.

Date post:	03-Jun-2018
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Volume Price Level Trading (1)

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