Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Here's how I use Time Histogram to confirm Volume Stop. Time Histogram works on the inverse. A spike in volume is confirmed by little-no histogram bar showing for Time Histogram.
BTW I have run the other indicators in the TL thread. The ones mentioned above by Deanz work well, except the only work real time and don't save once you change chart. Apparently you can do something with replay, it's all in the TL thread.
Here's what I was referring to using S/R- a swing low, tick divergence, and both "time histogram" tools. These trades work best when one can identify a range bound market condition as you may get killed when the market is directional. The only thing this trade set up had against it was on the top left chart you see a thin purple line that's the VWAP so you are trading into S/R in that aspect.
Thanks for sharing your chart, lots of good information & ideas in there. The tick indicator gives very similar signals to the way I use the tick so I'm sure that it works well. I also use it on a 1m chart. I also use it on a 5m chart to catch larger divergence patterns.
For the time histogram.. This is the 3rd time I've looked at it. My conclusion is that it doesn't work very well during the market peak times (9:30 - noon, 2-4pm). It seems to work better during lunch and overnight. I was checking it out and I found a case where it worked and it was between 1&2. Then I went back and looked at your chart and your example is between 1&2. Have you found it to work between say 9:30 - noon?
My problem with volume stop is it gives false signals (like everything else). The key to using indicators is to learn when they give false signals and why. So far I haven't found it reliable enough to work by itself so I'm working on a way to confirm it like you're doing with the time histogram.
You know I haven't found the optimized settings for Time Histogram. You have to play around with them. If you go over to about page 7-9 on the Trade Intensity thread on TL you will see Blowfish's settings on a 20 volume FESX chart. He is using very small settings 1,3,5, 7, 9 and it works well. So that got me thinking. If the market is less liquid than ES, say 6A, 6B or so drop down to a 100 volume chart and use lower settings on TH.
I am actually thinking of contacting the inventor, Gumphrie himself since I have some ideas to improve upon but can't do it myself.
The other thing I would suggest is to use the indicator Deanz on TL was nice enough to share to filter volume stop. it works well.