The volume peak (in white); prior to that there is a red volume bar that peaks, there is a crossing of a price level there (establishing a new price level on this chart), but the interest is not strong in the price climb. When the price turns down ...

Volume Price Level Trading

I'll start to spend more time on the practical side of trading and dcisions behind it. Closed candles or different time frames. Yes, you can miss moves in open candles, but my experience is that I make a lot of bad decisions trading open candles. ...

Volume Price Level Trading

What we are establishing are price levels. Then looking for where the interest is in those price levels. It isn't as simple as saying we get a high volume, followed by a low volume and we do..... Volume and price work together so when price at an ...

Volume Price Level Trading

The INTEREST simply remains at this price level one candle after vertical line 9 and then as price rises past our new price level again their is no INTEREST at this price level. Our "B" price level is once again verified as a no INTEREST price and ...

Volume Price Level Trading

Now, notice how the INTEREST changes at lines 8 and 9. Higher volumes and price going up. This is a market change and sets a brand new price level at horizontal line C which is 1.3250. This price level is crystal clear if you take a look back at ...

Volume Price Level Trading

Lines 5,6 and 7 are all peaks of volume (INTEREST) and where does the interest lay? Not in price going up, there is INTEREST in selling at this price level. And now things will get interesting.

Volume Price Level Trading

As we progress we can see where the vertical lines are drawn on the chart that volume is rising and we see the largest price movements are down. The first price movement simply reinforces that INTEREST in price level is still not above our ...

Volume Price Level Trading

Let me explain INTEREST. VOLUME = INTEREST The chart below on the left side seems pretty simple. Volume is rising and price is rising, which means buyers are bidding up to sellers in order to purchase (demand). Interest is high and somewhere along ...

Volume Price Level Trading

Let's go through what we see everyday in volume and price levels. First, let's forget the word volume as it is a technical term. Instead we will use the word INTEREST. Peaking volume means their is INTEREST and low volume means their is no INTEREST. ...

Volume Price Level Trading

I only trade and make the decisions after the candle closes. I never make or base a technical decision on an open candle. If I want an earlier peak or entry, I use a lower time frame like M5 and trade on the M5 closed candles. I'm big on multi-time ...

Volume Price Level Trading

Yes, the overall concept is correct. I might differ with you on price levels. I'd prefer at price level at trigger of 1.3260, just because we saw no volume for the price to drive below 1.3255 just previously (around 23:00). I'd like a stop at ...

Volume Price Level Trading

I promise I will summarize the rules and guidelines after I introduce the topic. Volumes and Price Levels are powerful when used together and consider the introduction the safety course. I want people to trade successfully and know why they are ...

Volume Price Level Trading

Now, let's look at the pitfall looming ahead. We just made a great short trade and we get another trigger on Dec 30 21:45, coincidentally the same candle our exit was hit on the previous trade. We can see that our price doesn't rise very high and ...

Volume Price Level Trading

Trading and Some Pitfalls There are definitely some pitfalls to watch out for and knowing these and measuring our risk/reward will go a long way in keeping us profitable. Let's look at the next chart and our "Volume Trigger", you can see the volume ...

Volume Price Level Trading

It certainly can happen and that's were some other tools come in handy, like my post on older Escalator to Pips forum that uses multi-time frame stochastics so we know where we are in the trend. Even at that, I'm fundamentally not a risk taker, so ...

Volume Price Level Trading

I will talk about it more but basically you just want to set your volume indicator level line to mentally block the volume that isn't of interest, i.e. it is too low and numerous to give any indication.

Volume Price Level Trading

Let's focus on 8:45 am. This is where we see a huge spike in volume, which means that price crossed a line that "triggered" a large amount long trades. This we will call the "Volume Trigger". The "Volume Trigger" is created at the close of the ...

Volume Price Level Trading

So let's read this chart from December 31, 2012. As you can see at around 8:45 am there was a huge spike in price upwards, a leveling off and then a sharp down turn at 10:45 am and then another climb right afetr that to the end of the chart. So, ...

Volume Price Level Trading

This is a MT4 chart with volume indicator added on the M15 time frame. You will notice I have made the volume chart one colour as I think seeing different colours for the rise and fall in volume only confuses matters. I've also added a level line on ...

Volume Price Level Trading