How to Trade Volume (Forex) — Transcript

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1. 0:00so you're a day trader right and you
2. 0:01want to chase the volume
3. 0:03of transactions with whatever currency
4. 0:06pair your trade most people are under
5. 0:07the impression
6. 0:08that when you get into the high volume
7. 0:11areas
8. 0:12that's when you're going to make the
9. 0:13most money but in this video i'm going
10. 0:15to show you how to use the volume
11. 0:17indicator to actually show you a
12. 0:19reversal
13. 0:21[Music]
14. 0:23welcome back to the channel everybody my
15. 0:24name is artie and this is the moving
16. 0:26average a show where we discuss
17. 0:28everything day trading to keep you
18. 0:29profitable on a consistent basis
19. 0:31so when trading forex or
20. 0:33cryptocurrencies or whatever like forex
21. 0:35for example
22. 0:36is the highest volume highest
23. 0:38transaction
24. 0:39market in the world like it is the
25. 0:42biggest there's
26. 0:42trillions of dollars every single month
27. 0:45being swapped in forex
28. 0:47so let's just jump right into the charts
29. 0:49and i'm going to show you exactly what
30. 0:50i'm talking about when you first log
31. 0:52into your trading view account and jump
32. 0:53into a chart
33. 0:55the first indicator the only indicator
34. 0:57that they put up on the screen for you
35. 0:59is a volume indicator you can see it
36. 1:00right here on the bottom we have big red
37. 1:03candles we have big green candles and it
38. 1:05shows
39. 1:06high volume in correlation with this you
40. 1:08can see
41. 1:09large spikes in a direction when there's
42. 1:11a lot of red candles
43. 1:12there's probably 57 000 different volume
44. 1:15indicators but this is the built-in one
45. 1:17and this is pretty much all you need
46. 1:19you don't really need to know the amount
47. 1:22of volume that's going in you just need
48. 1:23to see
49. 1:24a clear growth in volume for example you
50. 1:27do not want to get
51. 1:28into a consolidating market whatsoever
52. 1:32when the price is doing this you could
53. 1:34sit in this trade for five
54. 1:35hours while it doesn't move and it's
55. 1:37extremely frustrating and you might even
56. 1:39get
57. 1:40that trade into the next day and have to
58. 1:41pay swap fees
59. 1:43it's not fun so to avoid consolidating
60. 1:46markets to avoid
61. 1:47being trapped in here for hours on end
62. 1:50just take a glance at the volume
63. 1:52indicator
64. 1:52if you see extremely low volume do not
65. 1:55get into that pair whatsoever
66. 1:56then when it's done consolidating you
67. 1:58can see right here we started to get
68. 2:00some spikes in volume
69. 2:02and the price subsequently did likewise
70. 2:05but you want to use the volume indicator
71. 2:07to actually find
72. 2:08entries for your trades right you want
73. 2:09to find directions of your trades
74. 2:12and you want to use this to say hey
75. 2:14that's the direction it's going
76. 2:15the cool thing about the volume
77. 2:17indicator if you really know the markets
78. 2:20and you've been trading for quite a
79. 2:21while you can actually
80. 2:23see what's going on here just strictly
81. 2:26from the volume
82. 2:27let me show you an example okay i've
83. 2:29made this as big as i can so you guys
84. 2:31can see exactly what i'm talking about
85. 2:33so we have this right this consolidation
86. 2:37area
87. 2:38it's also clearly represented in the
88. 2:40volume
89. 2:41by extremely low volume on this currency
90. 2:44pair at this time
91. 2:45the average trader is looking at
92. 2:48consolidation
93. 2:49and waiting for a breakout because they
94. 2:51know that once it breaks out of that
95. 2:53consolidation it's just gonna run
96. 2:55in that direction look at this area
97. 2:57right here
98. 2:58you can see it's basically just not
99. 3:01doing
100. 3:02anything then we get a taller
101. 3:05red candle right here and a taller
102. 3:08red candle right here people are seeing
103. 3:10these two
104. 3:12volume indicators and saying oh you know
105. 3:14the price might move to the downside
106. 3:17and that's exactly the trap that you
107. 3:18should be keeping an eye out for
108. 3:20i talk about it in a lot of my videos
109. 3:23there are always traps laid out for the
110. 3:25retail trader because the retail trader
111. 3:27funds all of the billionaires if you
112. 3:29were patient
113. 3:30and waited for the trap waited for the
114. 3:33trap to be
115. 3:34set and then a high high high volume
116. 3:37long engulfing wick in the opposite
117. 3:40direction
118. 3:41and that's exactly what happened here we
119. 3:42started to have some higher volume
120. 3:44than we did in this consolidation range
121. 3:47people got
122. 3:48overly excited they jumped the gun they
123. 3:50went in on a short position
124. 3:52and then boom we got this big fat
125. 3:55bullish engulfing candle
126. 3:56and the volume showed likewise and we
127. 3:59maintained that trend up even if you
128. 4:01just waited for this
129. 4:02one candle to close on this one move you
130. 4:05could have gotten 31 pips
131. 4:06now that's how to use the volume
132. 4:08indicator to actually kind of get an
133. 4:10idea
134. 4:10of where the traps are the second way
135. 4:13that i like to use the volume indicator
136. 4:15is to help me find where people
137. 4:19are being stop hunted the stop-loss
138. 4:22hunt is insane sometimes on some of
139. 4:25these currency pairs
140. 4:26you will see one candle go 100 pips in
141. 4:29five minutes now i'm going to show you
142. 4:31this happens all the time
143. 4:33you can see these massive massive spikes
144. 4:36on the volume
145. 4:37and those are literally just stop hunts
146. 4:40for example this one
147. 4:41the price started going down it started
148. 4:43curving up like crazy
149. 4:45and then we got this massive volume
150. 4:46spike down trying to hit everybody's
151. 4:49stop loss and then the price continued
152. 4:50up this right here
153. 4:52quick stop hunt this is an even bigger
154. 4:54example we were consolidating the price
155. 4:56started to go down
156. 4:58we get this massive volume up like this
157. 5:00is absurd amounts of volume
158. 5:02compared to the rest of everything like
159. 5:04you can see how huge this candle spike
160. 5:06is on the volume
161. 5:07stop loss hunt consolidate and then
162. 5:10reverse back down so if you think that
163. 5:12you're being stop hunted
164. 5:14look for these massive spiked candles on
165. 5:17the volume indicator
166. 5:18and you'll know for sure at that point
167. 5:20if you're in a position
168. 5:22you can easily get out of it take the
169. 5:24loss
170. 5:25but then reverse your position and go
171. 5:27with that stop hunt because you don't
172. 5:28know when it's going to stop i've seen
173. 5:30stop hunts go
174. 5:31150 170 pips in one day and again like i
175. 5:35said at the beginning of my video
176. 5:36you can actually use this as an
177. 5:38indication of price reversal
178. 5:40so after this huge huge spike in the
179. 5:43volume meter
180. 5:44you know that the price is going to
181. 5:46correct down a little bit it's not going
182. 5:47to reverse
183. 5:48fully but you will get a nice fat
184. 5:50correction of about 50
185. 5:52of that spike so you can scalp that 50
186. 5:55call it quits using the volume indicator
187. 5:58is
188. 5:59it's a nice tool but i wouldn't rely on
189. 6:02it solely it just gives you
190. 6:03a visual representation of how much
191. 6:06liquidity is in the market at any given
192. 6:08time what you want to do is stick to
193. 6:10your strategy
194. 6:12and use the volume indicator as like the
195. 6:14reassuring click so if you've got all
196. 6:16your analysis
197. 6:17done and then you pop up the volume
198. 6:20indicator you can see
199. 6:21okay yeah i'm right yeah there's high
200. 6:24volume here or oh i'm not going to get
201. 6:26in on this trade
202. 6:27because it's just consolidating the
203. 6:28volume is not there so i only recommend
204. 6:30this for
205. 6:31experienced traders like you need to
206. 6:33have strategies that you've just
207. 6:35mastered and use the volume indicator as
208. 6:38a supplement
209. 6:39in your day trading don't rely solely
210. 6:42on the volume indicator so if you guys
211. 6:44are still watching this video
212. 6:46guess what that means that you like the
213. 6:47video so if you wouldn't mind smash the
214. 6:49like button
215. 6:50below my face i really appreciate it it
216. 6:52makes me feel good about myself
217. 6:54consider subscribing to the channel if
218. 6:55you haven't already and we will see you
219. 6:58in the next video