Knowing at which price the most people bought and sold is key to profitabel trading, using the peak volume price indicator (green line on the charts) its pretty easy to spot this price.
It can be used
- to define which market to trade
- get a good re-entry price
- get almost perfect profit targets (see fdax chart)
On the Euro Futures then trend has already started when I start trading (2 to 3 am) using the peak volume line, a valid re-entry can be made on pullbacks to that line and then using a simple breakout of the 10 min bar.
After 9.30 am often time one market is clearly more bullish than the other, if the nasdaq for example as you can see on the screenshots goes through the support line its clear not to trade this market long. S&P moved sideways, only the DOW established a good long trend.
No comments:
Post a Comment