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Volume has a helping tool to trade pullbacks


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  #1 (permalink)
 
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 trendisyourfriend 
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How do you use volume to trade a pullback?

For example, on a 5min chart, if price retraces to a 20 periods moving average, what would you look for in terms of volume to open a trade on the ES ? A delta > 1000 or 2000, anything else ?


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  #3 (permalink)
 
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 LukeGeniol 
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Usally I look for a reversal bar type, hammer, shooting star, outside bar, with volume > than prev bars and delta with the sign of volume.

Luke.


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Luke.
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 trendisyourfriend 
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LukeGeniol View Post
Usally I look for a reversal bar type, hammer, shooting star, outside bar, with volume > than prev bars and delta with the sign of volume.

Luke.

We get lots of volume bars that are > than prev bars. How much more do you need to take it seriously ? A delta > 1000 or > 2000 ? Can you define "delta with the sign of volume" ?


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 trendisyourfriend 
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Here is how i understand volume analysis using a very particular day, ie, today on the ES :

In short:
1) I wait for price to retrace to a plausible area of supply in the case of a downtrend or an area of demand in the case of an uptrend (in my case, i use three moving averages (21, 55, 89) as a likely area where price can retrace to and resume the trend.
2) Once the area is hit i wait for outside volume opposite to the trend to appear
3) i wait for a bar where outside volume is not present to open a trade


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 LukeGeniol 
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trendisyourfriend View Post
We get lots of volume bars that are > than prev bars. How much more do you need to take it seriously ? A delta > 1000 or > 2000 ? Can you define "delta with the sign of volume" ?

Do not know actually the delta value for ES, but u can confirm the reversal bars (or may we can call them the trend continuation bars) volume with up delta if trend is up or vise versa for down trend.
atacche is an example of 6E today, don not have delta now but u can see clear the bars with the volume that confirm the trend after a pulback.


Take your Pips, go out and Live.
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  #7 (permalink)
 jabeztrading 
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trendisyourfriend View Post
Here is how i understand volume analysis using a very particular day, ie, today on the ES :

In short:
1) I wait for price to retrace to a plausible area of supply in the case of a downtrend or an area of demand in the case of an uptrend (in my case, i use three moving averages (21, 55, 89) as a likely area where price can retrace to and resume the trend.
2) Once the area is hit i wait for outside volume opposite to the trend to appear
3) i wait for a bar where outside volume is not present to open a trade


Trendisyourfriend, I know your post was since last year but may I ask what volume indicator were you using on the 2nd panel? Thank you in advance.
jabeztrading


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  #8 (permalink)
 
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 horton 
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Ditto. And what is "Outside Volume"? Gracias.


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  #9 (permalink)
 
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 Braulio 
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I'm gonna take a wild guess here but it looks like the BUYSELLVOLUME from Zondor, available for elite members here:

https://nexusfi.com/free_downloads/vip_elite_circle/458-download.html?view


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  #10 (permalink)
 jabeztrading 
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Braulio View Post
I'm gonna take a wild guess here but it looks like the BUYSELLVOLUME from Zondor, available for elite members here:

https://nexusfi.com/free_downloads/vip_elite_circle/458-download.html?view



I was thinking that it could be the Trade Size Analyzer for NT7 found on the Elite downloads.

https://nexusfi.com/free_downloads/vip_elite_circle/920-download.html?view

Thanks


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