Applying volume could be considered the ultimate ingredient to any trading strategy.
Day traders and scalp traders that analyse volume are sure to have the edge over the rest of the market.
While volume provides strong confluence, how you read it will determine the success rate of your setups.
The strategies demonstrated in this tutorial will focus on volume charts and how you can use them to identify liquidity runs and buyback runs.
Such observations can be useful to highlight swing failure patterns (SFP).
Study this tutorial and decide whether this strategy will align with your trading routine.
Even if it doesn't, there are many principles in this strategy that will give you great oversight in the market.
Applying volume could be considered the ultimate ingredient to any trading strategy.
Day traders and scalp traders that analyse volume are sure to have the edge over the rest of the market.
While volume provides strong confluence, how you read it will determine the success rate of your setups.
The strategies demonstrated in this tutorial will focus on volume charts and how you can use them to identify liquidity runs and buyback runs.
Such observations can be useful to highlight swing failure patterns (SFP).
Study this tutorial and decide whether this strategy will align with your trading routine.
Even if it doesn't, there are many principles in this strategy that will give you great oversight in the market.
Key Points of the Lesson
UTILITY
Recognize high/low liquidity environments.
Adapt technical analysis and tools.
Make trading easier by following the volume.
1:03 IMPLEMENTATION
Use footprint statistics software ⇒ Exocharts, Atas.
Use a volume chart.
Activate high-low and trades count statistics.
Observe H-L volume candle size.
Large H-L represents low liquidity.
Many small H-L candles represent high liquidity.
Generally, look to fade low liquidity moves.
Use CVD divergences in high liquidity environments.
2:08 PRACTICAL EXAMPLE
5:48 TIPS & TRICKS
If price breaks through a key level but the H-L are larger than average ⇒ likely a fake-out, look to fade the move.
If price reaches a key level and the H-L are smaller than average, while CVD breaks up/down ⇒ larger traders absorbing the smaller market orders.
Price moves quickly on a low trade count ⇒ high volume trader is participating.
Follow the footprints of the larger traders ⇒ trade with the volume, join the move.
TAKE HOME MESSAGE
Volume Candle Size shows liquidity.
CVD divergences work best with high liquidity.
Fade low liquidity moves and follow the volume.