Volume Trend Trading Strategy For Beginners
I use this strategy DAILY. Volume is the 🐐
🧵👇
I use this strategy DAILY. Volume is the 🐐
🧵👇
Tomorrow (5/22/24) I will be opening some spots in my Trading Group @ 4pm eastern
It includes: Daily Live Trading, my trades, a library of education, other experienced traders, & no assholes who make you feel like crap
It's a special place. I recommend checking it out
It includes: Daily Live Trading, my trades, a library of education, other experienced traders, & no assholes who make you feel like crap
It's a special place. I recommend checking it out
Why Are Volume Trends Important??
If a move is occurring, we need to know if it is getting stronger or weakening. Volume trends solve that problem
They also set us up for 'Volume Trend Breaks' which is our main focus today
If a move is occurring, we need to know if it is getting stronger or weakening. Volume trends solve that problem
They also set us up for 'Volume Trend Breaks' which is our main focus today
Our Strategy
1) Look for decreasing volume trends
2) Wait for a volume surge to break that decreasing trend
3) Interpret that surge & determine which sentiment is in control
4) Look for an entry
1) Look for decreasing volume trends
2) Wait for a volume surge to break that decreasing trend
3) Interpret that surge & determine which sentiment is in control
4) Look for an entry
Finding Decreasing Volume Trends
Here are a couple good examples of decreasing volume trends
Make sure the volume peaks are declining at a steady rate
Here are a couple good examples of decreasing volume trends
Make sure the volume peaks are declining at a steady rate
The Volume Surge
Eventually the decreasing volume trend will have to break. I call this the 'volume surge' or 'volume trend break'
The price action that occurs on the volume trend break is VERY SIGNIFICANT
Eventually the decreasing volume trend will have to break. I call this the 'volume surge' or 'volume trend break'
The price action that occurs on the volume trend break is VERY SIGNIFICANT
The volume trend break needs to be higher than the black downtrend line
I prefer to to be more than double the last peak that formed the volume trendline
Just eyeball it guys. Much higher than the black line = good
I prefer to to be more than double the last peak that formed the volume trendline
Just eyeball it guys. Much higher than the black line = good
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You're allowed to bookmark it AFTER YOU'VE LIKED IT
Interpret The Surge
We need to use our VPA knowledge to interpret the candles that form during the volume surge
In this case the surge is paired with strong red candles, which show bears are stepping in and are stronger than bulls right now
We need to use our VPA knowledge to interpret the candles that form during the volume surge
In this case the surge is paired with strong red candles, which show bears are stepping in and are stronger than bulls right now
Look For Entry
The best case scenario is a lower volume pullback right after our surge forms
In this example we see a lower volume inside candle. This is a great entry spot & would have paid nicely
The best case scenario is a lower volume pullback right after our surge forms
In this example we see a lower volume inside candle. This is a great entry spot & would have paid nicely
Other Examples
Key Things To Remember
-Our surge needs to be SIGNIFICANTLY higher volume
-Our surge needs to be paired with a strong candle that shows a clear advantage for one sentiment
-Entry should be on a pullback
-This strategy is simple an edge, it won't work every single time
-Our surge needs to be SIGNIFICANTLY higher volume
-Our surge needs to be paired with a strong candle that shows a clear advantage for one sentiment
-Entry should be on a pullback
-This strategy is simple an edge, it won't work every single time
YOU MADE IT TO THE END OF THIS THREAD
Now set your reminder for tomorrow @ 4pm eastern so you can snag a spot in my room
THANK YOU FOR READING & I HOPE YOU LEARNED SOMETHING USEFUL
Now set your reminder for tomorrow @ 4pm eastern so you can snag a spot in my room
THANK YOU FOR READING & I HOPE YOU LEARNED SOMETHING USEFUL
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