Volume Price Level Trading http://www.forexfactory.com/showthread.php?t=402865 Volume is a popular tool amo !

traders" #ut most loo$ at %olume o%er time. &he you plot %olume a!ai st price scale" the a completely differe t picture emer!es. 'here are prices that ha%e a lar!e amou t of %olume a d prices that ha%e much less %olume. Volume (rice )e%el 'radi ! is ot ew" i fact it is as old as futures tradi ! or e%e the stoc$ mar$et itself" lo ! #efore computers existed a d the o ly tic$er..well...was a tic$er tape of price a d %olume. *a y ar!ue i +orex that %olume is a mea i !less i dicator #ecause it o ly i dicates a #ro$er,s %olume. 'here are two pro#lems with that ar!ume t. 'he first is that why i dicators e%e wor$" is that they extrapolate historic price data a d the traders use this i formatio to ma$e trades which affect price actio . -eco d" %olume is ot a i dicator. Volume typically leads price a d is the o ly tool that does ,t extrapolate historical um#ers .i.e. what the mar$et did/ to determie e a result. Volume is price actio . 'he effect o price is that hi!h %olume te ds to #e attracted or wor$ withi a price ra !e arou d a price le%el. 0i!h %olume is hi!h mar$et i terest i a price le%el" low %olume is low mar$et i terest i a price le%el. 'he mar$et ma s that for e%ery #uyer there is a seller. +orex is ot ra dom price mo%es. (rice mo%es #ecause someo e is selli ! a d someo e is #uyi ! at a price. 'he more popular a price for #uyers a d sellers" the more %olume. Volume i +orex is a #ro$er,s tic$ %olume data from it,s ow data#ase. 'his mea s that %olume is a record of e%ery trade" 1 trade" 1 %olume. Volume is ot the 2ua tity traded. 'he reality of +orex is that e%eryo e sees the same price" e%eryo e uses the same i dicators a d why %olume wor$s across #ro$ers is that the mar$et ma$es the same decisio s" re!ardless of which #ro$er they use. 'he e d result" is that at each price le%el the %olume i crease or decrease is relati%ely the same at a y #ro$er #ecause the mar$et i terest is the same at each price le%el. 'his has #ee pro%e time a d time a!ai " #y traders usi ! multiple #ro$ers" compari ! #ro$ers" #y usi ! multiple #ro$er feeds" a d so o . Volumes will ot #e exactly the same" #ut their relati%e mo%eme t to price will #e the same. 3 price le%el is li$e a ma! et" price ca dles are iro #ars attracted to the ma! et" a d %olume is the ma! et,s stre !th. 'he stro !er the price le%el" the more attracted price is to it. (rice will #ou ce arou d a stro ! price le%el a d #e difficult to mo%e off the price le%el. 'ry to mo%e a iro #ar that is attached to a ma! et...%ery hard to mo%e" #ut o ce the iro #ar mo%es away from the ma! et" it is a lot easier to mo%e. &he a price le%el is wea$" there is othi ! to hold price at a fixed le%el a d prices ca mo%e more a!!ressi%ely a d 2uic$er. 4ro #ars will easily pass #y wea$ ma! ets" #ut whe they hit a stro ! ma! et they will stic$.

'rades i the mar$et are lar!ely pre5determi ed. 'here is a price le%el where #uyers a d sellers will !ather. 'his mea s that if you watch price a d %olume" you are ot loo$i ! at what has happe d i the past" you are loo$i ! at where the mar$et is headed. 6 ce you fi d a stro ! price le%el" you ca trade to a d from that price le%el $ owi ! that price will #e attracted #ac$ to that price le%el. Volume (rice )e%el tradi ! is ot a system i a traditio al se se. 4t is readi ! the mar$ets. 0owe%er" ma y mo%es with price/%olume are repetiti%e a d predicata#le. &hat ca e%er #e for!otto is that we trade price le%els" we are loo$i ! to where price is most attracted too.

&he you loo$ at a +orex price chart you ca see that there is a co sta t oscillatio of price" a d if you o ly $ ew where those pea$ prices were to tri!!er your trade a d ride a tre d 555 well tradi ! would #e so easy would ,t it? &ell" the first thi ! to reali7e is that this $ owled!e of pea$ price le%els is a%aila#le to you e%ery day a d that the %ast ma8ority of these pea$ price le%els are predetermi ed #y the hu!e mo ey dealers. 4 other words" these price le%els are ot ra dom #ut decided o i ad%a ce" #y mi utes" hours or days i ad%a ce. 'he %olume i dicator shows us e%erythi !" the secret is i terpreti ! that i formatio to determi e the price le%el" set your trade at that le%el a d the reap the rewards. -o" let,s di%e i to %olume tradi ! a d price le%els a d let me show you how to fi d a ew le%el of tradi ! success. 'his is a *'4 chart with %olume i dicator added o the *15 time frame. 9ou will otice 4 ha%e made the %olume chart o e colour as 4 thi $ seei ! differe t colours for the rise a d fall i %olume o ly co fuses matters. 4,%e also added a le%el li e o the %olume i dicator at 500. 'his is a ar#itray li e 4 use 8ust for refere ce to i! ore the %olume oise #elow this li e. 4f tradi ! o *:0" 4 use le%el ;50 a d o 01 it is le%el 1000" i case you are wo deri !.

-o let,s read this chart from <ecem#er :1" 2012. 3s you ca see at arou d 8:45 am there was a hu!e spi$e i price upwards" a le%eli ! off a d the a sharp dow tur at 10:45 am a d the a other clim# ri!ht afetr that to the e d of the chart. -o" from this chart we could ha%e easily ta$e ad%a ta!e of the dow tur a d the followi ! rise simply #y esta#lishi ! price le%el li es from the data stari ! at us. 3ttached 'hum# ails

)et,s focus o 8:45 am. 'his is where we see a hu!e spi$e i %olume" which mea s that price crossed a li e that =tri!!ered= a lar!e amou t lo ! trades. 'his we will call the =Volume 'ri!!er=. 'he =Volume 'ri!!er= is created at the close of the ca dle" we e%er ma$e decisio s midway throu!h a ca dle. <etermi i ! the price that caused this =Volume 'ri!!er= is the tric$y part. Volumes are fairly le%el prior to this =Volume 'ri!!er= at 8:45 am a d as such 4 put the price li e a#o%e the ope s a d closes of ca dles pre%ious. 4 loo$ed #ac$ to ::15 am where the %olume made a small pea$. &e ca see where 4 drew the =(rice )e%el )i e at 'ri!!er= a d we ca see how the %olume from ::15 to 8:45 reacts to this li e. 4 will write more a#out this later as it is %ery i tuiti%e for me to see the =(rice )e%el )i e at 'ri!!er= #ut there is a %ery a alytical approach to this that ca #e used to esta#lish this li e. 4 also loo$ for simple prices that are e di ! o =5= or =0=" i this case at 1.:1>5 55 we,ll e%er #e exact a d it is !ood practice that we typically use the =5= a d =0= price le%els whe setti ! a price le%el. -o at this poi t we $ ow ha%e esta#lished that there is a price le%el li e at 1.:1>5 a d this has tri!!ered a #uyi ! spree i the mar$et. +rom >:00 to >::0 we ca see that %olumes ha%e decli ed a d the price has pretty much maxed out at the top of the chart. -o after the >::0 ca dle closes" 4 put my sell order i at the 1.:222 a d waited for my order to !o throu!h" which it did. *y stop is at 1.:2:0" a little hi!her tha the hi!hest price reached si ce the =Volume 'ri!!er=.

*y exit tar!et is simply at 1.:1>5 where the =(rice )e%el )i e at 'ri!!er= is set. 'his is a simple set the trade a d for!et with my #ro$er. 0owe%er" #etter strate!ies to maximi7e the trade a d exit #y %olumes a d price do exist for i the mome t tradi !. 4f you paid atte tio you ca see my error where 4 set the =(rice )e%el )i e at 'ri!!er=. 4 set it at 1.:222 a d at 10:45/11:00 we ha%e proof #y the %olume spi$es that the real price le%el is at 1.:220. ?otice my error? 4 should ha%e stuc$ to the =0= price le%el at 1.:220 a d ot 1.:222. 4 this i sta ce it did ot hurt me" #ut trade opportu ities ca #e missed #y a simple mista$e li$e this 5 small as it may seem. 3lso at 11:00 we ha%e a ew tri!!er a d price le%el li e to esta#lish for a lo ! trade. 'he safe le%el is at 1.:185 or 1.:1>0. 4,ll let you po der that for ow a d see if you ca fi!ure out why that,s a safe e try poi t for a lo ! trade. 3 d where would you exit? 4t loo$s so ar#itrary a d simple does ,t it? 4t is a d it is ,t. 6#%iously esta#lishi ! the correct price le%el li e is the challe !e a d my hope i this forum is to show you how to determi e that price le%el li e@ ot 8ust #y i sti ct #ut with some lo!ic a d a alysis so there is o emotio or seco d !uessi ! i your tradi ! a d that you are ma$i ! pips all the time...a d ot hitti ! those dreaded stopsA Trading and Some Pitfalls 'here are defi itely some pitfalls to watch out for a d $ owi ! these a d measuri ! our ris$/reward will !o a lo ! way i $eepi ! us profita#le. )et,s loo$ at the ext chart a d our =Volume 'ri!!er=" you ca see the %olume #efore this was almost o 5existe t a d relati%e to that o <ec :0 18:00 we see a pea$. 'his is defi itely a cautio ary trade with %olumes this low o%erall for a exte ded period a d our pea$ 8ust risi ! a#o%e 500" #ut it,s a !ood lead i to a pitfall so we,ll use it. 9ou ca see if we set our price le%el at the tri!!er at 1.:205 .remem#er the =5= a d =0= rule/ that 1.:205 seems too low a d out of place...really stretchi ! the low limit of price. Bsi ! a =(rice )e%el )i e at 'ri!!er= of 1.:210 match are %olume chart a d price history much #etter. (rice 8umps up a d we see %olume die off : ca dle periods after our tri!!er. -o ow we set our sell order at 1.:2:0 a d our stop at 1.:2:5. 9ou ca see how we came to the determi e the stop li e? 1.:2:0 is a#o%e all the pre%ious hi!h prices o this chart .except o e ca dle/" it e ds i a =5= .5"0 rule/ a d it is close e ou!h to our sell order that if we hit our stop we really wo ,t !et hurt. -o ris$ to profit ratio loo$s pretty !ood with our exit #ei ! 1.:210. 3ttached 'hum# ails

?ow" let,s loo$ at the pitfall loomi ! ahead. &e 8ust made a !reat short trade a d we !et a other tri!!er o <ec :0 21:45" coi cide tally the same ca dle our exit was hit o the pre%ious trade. &e ca see that our price does ,t rise %ery hi!h a d the %olume drops after the tri!!er. 6ur =(rice )e%el )i e 3fter 'ri!!er= will #e the same as our =(rice )e%el )i e at 'ri!!er= of 1.:210. &hy? &e ca see the %olumes ha%e dropped : ca dles after the tri!!er a d we ha%e see o si! ifica t lo ! price mo%e. 4f we put the price le%el after the tri!!er at 1.:215 there is o pre%ious price le%el reached i pre%ious ca dles that support it. ?ow the pitfall. 4f we set our short order at 1.:210 this we $ ow is a tri!!er %alue for lo !s" so extremely ris$y. 6ur stop could fi d a place at 1.:220" (erso ally" 4 do ,t li$e it #ut a case could #e made for it" certai ly o lower. 6ur exit i this case will ru purely o a %olume tri!!er. 'hat,s : red fla!s for a ris$y trade a d we should a%oid it. Cetter to sit a d watch a d wait u til o%erall %olumes are #etter. 3 ris$ier trader mi!ht ta$e their ear i !s from the pre%ious trade a d set their stop at that le%el...so at worse they #rea$ e%e . -hort order at 1.:210 a d exit o the %olume tri!!er that e%e tually comes at 2::45...it,s a !reat trade i the e d. 0owe%er" that %olume tri!!er could ha%e #ee to mo%e the price i the opposite directio ...so watch out for this pitfall. &e,ll defi itely re%isit ma y trades similar to this a d as a holistic tradi ! strate!y exami e the pros/co s of e teri ! these type of trades a d how to stac$ the odds i our fa%our #etter. 3ttached 'hum# ails

hi spudfyre " tha $ you for this thread a d i 8ust wa t to see if !ot it ri!ht here a exemple o eur/usd we had a %olume spi$e at 1::0 am so price le%el li e at tri!!er is 1.:265 a d price le%el li e after tri!!er is at 1.:285 so we will short from 1.:285 with stop at 1.:2>5 tar!eti ! price le%el li e at tri!!er

9es" the o%erall co cept is correct. 4 mi!ht differ with you o price le%els. 4,d prefer at price le%el at tri!!er of 1.:260" 8ust #ecause we saw o %olume for the price to dri%e #elow 1.:255 8ust pre%iously .arou d 2::00/. 4,d li$e a stop at 1.::00" 4 thi $ it is less li$ely to !et hit...1.:2>5 mi!ht !et tested or 8ust touched. 4 li$e the 1.:285 e try" ma$i ! the ris$ ratio !ood.lose 15:!ai 25/ 55 the ris$ ratio allowed me to set the stop hi!her a d a stro !er reaso !o with a hi!her stop.

Dust a poi t 5 4,d dou#le up my short order ri!ht after the ::00 ca dle... otice the spi$e i %olume a d the lac$ of respo se i price. 'hat,s a other tri!!er #ut our price le%els would ot cha !e a d we,d #e loo$i ! at the same trade e try/exit. 4t,s 8ust a #o us we should ta$e ad%a ta!e of. 4 o ly trade a d ma$e the decisio s after the ca dle closes. 4 e%er ma$e or #ase a tech ical decisio o a ope ca dle. 4f 4 wa t a earlier pea$ or e try" 4 use a lower time frame li$e *5 a d trade o the *5 closed ca dles. 4,m #i! o multi5time frame tech ical a alysis a d tradi !. <id 4 say e%er...o$ 4 cheat o ce i a while..a d usually pay the price. 9es" there ca /will #e seco d wa%es" which is why our stop ratio is always lower tha our ear i !s ratio. 4t is u li$ely . ot impossi#le/" we will e%er e cou ter a successio of seco d wa%es. 4 other words" we are tradi !" expecti ! to lose a few" #ut always !ai o%erall.

Eurre t situatio o FB. 3 lo ! set up. F try would #e at 1.:100. Fxit 1.:1:0... applyi ! the 00/05 rule.

1.:0>5 seems to hold 8ud!i ! from the hi!h %olume o the dow #ars which are u a#le to mo%e price lower. 'he close is well off the ca dle lows which reflects #uyi ! acti%ity. )et,s !o throu!h what we see e%eryday i %olume a d price le%els. +irst" let,s for!et the word %olume as it is a tech ical term. 4 stead we will use the word 4?'FGF-'. (ea$i ! %olume mea s their is 4?'FGF-' a d low %olume mea s their is o 4?'FGF-'. 4?'FGF-' i what? (rice le%el. IMPORTANT: Volume a d price le%els is ot a#out predicti ! or forecasti ! where the price is mo%i ! too. 4 stead it is a#out $ owi ! where the price le%els are to e ter a trade whe a price le%el is reached" a d exiti ! a trade whe a price le%el is reached. &e order a d e ter a trade whe price hits a price le%el" i the directio of i terest" a d set a exit where i terest will fade. 4 will ow show you. )et me explai 4?'FGF-'. V6)B*F = 4?'FGF-' 'he chart #elow o the left side seems pretty simple. Volume is risi ! a d price is risi !" which mea s #uyers are #iddi ! up to sellers i order to purchase .dema d/. 4 terest is hi!h a d somewhere alo ! here we ha%e crossed a importa t price le%el. 4,%e set it at li e =3= o the chart .1.:200/. &e ca see where 4?'FGF-' is lost i the price. -omewhere a#o%e li e =C=. &e do ,t $ ow exactly where #ut we ha%e a refere ce poi t" 4 used 1.:2;5 as the price le%el si ce we ha%e a drop i %olume a#o%e this price le%el after a %olume pea$.

-o e try for a short would #e at 1.:2;5. 4 reality this is a #it of a !am#le" #ecause we o ly $ ow from what we see that #uyers lo%ed the price at 1.:200 a d lost 4?'FGF-' a#o%e 1.:2;5. Cut our ris$ reward ratio is 2uite hi!h. 6ur stop would fall arou d 1.::00" our e try at 1.:2;5" a d our exit at 1.:225...that,s 2x ear i !s %s a stop loss ris$. 3t this poi t we ha%e hit a %olume pea$ 5 ca dles from the left of the chart .our 'G4HHFG/. +or 2 ca dles after the pea$ we saw %olume drop a d price clim#. -o 4?'FGF-' i this price hi!her le%el has faded. 3t this poi t we are prete di ! we ha%e o pre%ious price a d %olume history except what is o this chart" so our trade e try here is the typical =4 thi $ price is !oi ! that5a5 way=. &e ha%e disco%ered 2 price le%els from 4?'FGF-'" #ut that is far from really $ owi ! a ythi ! co crete yet. 3ttached 'hum# ails

3s we pro!ress we ca see where the %ertical li es are draw o the chart that %olume is risi ! a d we see the lar!est price mo%eme ts are dow . 'he first price mo%eme t simply rei forces that 4?'FGF-' i price le%el is still ot a#o%e our hori7o tal li e C. 'he price mo%eme t a d hi!her %olume mea s that 4?'FGF-' is i price !oi ! dow . Cuyers are purchasi ! as price drops. Cetwee %ertical li e =2= a d %ertical li e =:= price drops a d %olume falls a d as %olume co ti ues to fall" price starts to rise. 3!ai o 4?'FGF-' i a hi!her price a d li es : I 4 almost pe! our upper price le%el. 'he hi!h %olume .4?'FGF-'/ here is a ticipatio a d #uyi ! that #ecause price is mo%i ! to cross the upper price le%el .or has crossed" si ce we do ,t $ ow exactly where it is/ that price may 8ump. 'his 8ust further rei forces that our =C= price le%el li e is close to where it should #e. 3ttached 'hum# ails

)i es 5"6 a d ; are all pea$s of %olume .4?'FGF-'/ a d where does the i terest lay? ?ot i price !oi ! up" there is 4?'FGF-' i selli ! at this price le%el. 3 d ow thi !s will !et i teresti !. 3ttached 'hum# ails

?ow" otice how the 4?'FGF-' cha !es at li es 8 a d >. 0i!her %olumes a d price !oi ! up. 'his is a mar$et cha !e a d sets a #ra d ew price le%el at hori7o tal li e E which is 1.:250. 'his price le%el is crystal clear if you ta$e a loo$ #ac$ at where price stopped falli ! #etwee li es 2 a d :" as well as after li e 6. 'his price le%el is ot ra dom. )oo$ #ac$ further to the 4th ca dle from the left side of the chart....remem#er there was i terest i

price passi ! a price le%el a d ow we fou d it. 'he mar$et has cha !ed" so either their will #e 4?'FGF-' i the price !oi ! hi!her" or the price !oi ! lower. &e simply ha%e o clue at his poi t i time. 'he safe play here is exit our trade" #ut it is still sou d to stay i our short trade for ow as we are far away from our stop. 3ttached 'hum# ails

he 4?'FGF-' simply remai s at this price le%el o e ca dle after %ertical li e > a d the as price rises past our ew price le%el a!ai their is o 4?'FGF-' at this price le%el. 6ur =C= price le%el is o ce a!ai %erified as a o 4?'FGF-' price a d #uyers do ,t wa t to #e #uyi ! at this price. ?ow" we ha%e our trade. 'his is the real deal" a d simply a ride from 1.:250 to 1.:200. &hy? &e $ ow that there is a#solutely o 4?'FGF-' from #uyers at either the 1.:250 or 1.:2;5 price le%els. &e $ ow that the mar$et cha !ed a d our ori!i al =C= price le%el at 1.:2;5 has dropped to 1.:250 at the =E= price le%el. -i ce there is o 4?'FGF-' i #uyi ! at these le%els" there will #e a 4?'FGF-' .%olume/ pea$ comi ! a d li$e pea$s 2" 6 a d ; it will #e sell #ecause our price le%el still exists at 1.:200. Vertical li e 12 is ot a surprise" it is fully a ticipated #ecause that is where the 4?'FGF-' is. 3ttached 'hum# ails

Elosed ca dles or differe t time frames. 9es" you ca miss mo%es i ope ca dles" #ut my experie ce is that 4 ma$e a lot of #ad decisio s tradi ! ope ca dles. Elosed ca dles mea more to me" a d 4 ha%e remai ed co sta t i that. 'he way arou d ope ca dles is to trade shorter time periods" or loo$ at shorter time periods for a e try. -o" if you are usi ! *15" #ut wa t to trade part way throu!h a ope ca dle" drop dow to *5 a d see if it supports your deciso . 4 wrote a lot a#out multi5time frames i *'+ -tochastics a d Fscalator to (ips i these forums. 4 use stochastics routi ely" #ut that,s 8ust my prefere ce whe usi ! a oscillator i dicator. 'he %olume pea$ .i white/@ prior to that there is a red %olume #ar that pea$s" there is a crossi ! of a price le%el there .esta#lishi ! a ew price le%el o this chart/" #ut the i terest is ot stro ! i the price clim#. &he the price tur s dow a d %olume !oes up 8ust #efore the white pea$" we cross the price le%el a d there is far more i terest i the mar$et with price !o ! dow . &e would #e e teri ! a short order at this ew/existi ! hi!hest price le%el a d exiti ! at the ext lower price le%el. 4,%e draw =rou!h= price le%els where the %olume .4?'FGF-'/ is #ei ! supported. 3fter the #i! drop : price le%els are esta#lished" follow the %olume %alleys closely a d you should #e a#le to see how the price le%el i terest is #ei ! esta#lished. 3t the e d of this chart their are 2 spi$e %olumes with clim#i ! price. 3t 2uic$ !la ce a d loo$i ! at price at a whole it loo$s li$e i terest is less o the fi al price clim# #ut the !ree li e is actually i terest i a hi!her price. 4t,s may #e hard to see a d put to!ether" #ut remem#er it is where the 4?'FGF-' is" a d the i terest .%olume pea$s are supporti ! a clim#/ a d that hi!her !ree le%el.

4f that fi al ca dle is closed a d the %olume closed at that le%el" 4,d #e putti ! a lo ! order i where my !ree arrow is at the middle price le%el" loo$i ! for price to rise #ac$ up to the hi!hest price le%el. 'his is a %ery tou!h trade a d re2uires really payi ! atte tio to details i the %olume/price mo%es.

'his is old stuff. 4,%e always used it... ot as a system #ut to read the charts. -i !le most powerful tradi ! tool you will e%er ha%e i your arse al. 'his !oes way #ac$ to readi ! tapes a d tradi ! without home computers...a d 4,m really ot that oldA 4t still as rele%a t today. 4,%e certai ly modified it o%er the years from use a d experie ce. 4,%e had far more success focusi ! o fi di ! mar$et price le%els" tha focusi ! o more arrow price actio . )ast : years" ha%e #ee the most success usi ! price le%els...pro#a#ly #ecause 4 really put a focus a d dedicatio i to readi ! the charts this way" had the time to focus...a d mo%ed away from the more .easy a d la7y?/ use of i dicators. 'his causes far less tradi ! stresses a d 4 ca e ter a d wal$ away from trades" i stead of li%i ! i fro t of my computer. ?ow" tryi ! to write it dow i to somethi ! mea i !ful for others to use...this is a first attempt at that challe !e.

(rice )e%el Gules 15; Fsta#lishi ! (rice )e%els

(rice le%els are what we trade too. 6ur first tas$" CF+6GF we trade" is too esta#lish

some price le%els we ca use for tradi !. +irst we simply eed a starti ! poi t a little ways #ac$. 4f you are a acti%e trader" o ce you start you will simply mai tai your chart with the curre t price le%els o it. 3 more casual trader will ha%e to !o #ac$ i rece t time a d fi d the curre t price le%els. 0ere is how we do it. Rule 1. Price and Volume are one thing. Never believe that price moves without volume or that volume moves without price. You will never understand one without the other. The only thing your need on your chart are price candles and the Volume indicator (I use MT4 Indicators, Volume, Volume . Rule . Volume ! Interest. Never call volume !volume!. This will only con"use you and means absolutely nothing. !INT#$#%T! on the other hand means something...as in !INT#$#%T IN &$I'#!. I mean how interested the mar(et is in price. Rule ". Trade on #ur$%S& M1'. This is the easiest currency to trade and usually costs you the least in spread. )e use M*+ because "or one it is the most a""ordable time period to trade "or the small investor (i.e. reasonable stop losses, ris(, earnings, etc. and the other reason is we can utili,e M+ and M-. in more advanced topics to be even better traders to con"irm M*+. /h ya, and you thought this would be simple...and yes you don0t have to trade in multiple time "rames to be a success 111 but it is more "un2 Rule (. It doesn)t matter *here *e start+ ,ut *e have to start some*here and not too far ,ac- in histor. *hen esta,lishing our first /rice level. This is open to how much wor( you want to do be"ore you enter your "irst trade o" the day. It is also sub3ective to how con"ident you are in the price levels you establish. I recommend at least *4144 hours bac( and i" that doesn0t "eel right try 44145 hours. Too "ar bac( and you are 3ust wasting your time (i.e. 6 days is way too "ar bac( . You want something that gives you a good starting point as we discuss in $ule 6. Rule '. The 0irst Price Level 1e #sta,lish 1ill 2e Our 1ea-est in 3onfidence+ the Last Our Strongest /ur "irst &rice 7evel will be determined with only * or 4 sets o" data, our last should have our "ull con"idence and have been derived "rom all relevant data available. 8eyword here is !relevant! 1 see $ule 4. Rule 4. Price Level Price)s Al*a.s #nd in 5'5 or 565. This is a !pshyco1logical! price level, well written about and e9plored. It0s real, it e9ists, why "ight it: I simply will never e9plain or 3usti"y this rule. It is what it is...pshyco but logical. Rule 7. 5Scanners On S/oc-85 9 &etect the 0irst Price Level -ee chart #elow...please ote this is ot a trade set up +i d a !ood clear spi$e .(ea$ 3/ i %olume with a lar!e .or lar!est/ price actio .ca dle/. -ee red %ertical li e =3=.

Ho #ac$ a little i time a d fi d a other spi$e .(ea$ C/ with some dece t price actio that falls withi your first selectio 5 this is to help arrow our price le%el ra !e. -ee !ree %ertical li e =C=. Cy =falls withi = we mea that the price ca dle is i the same ra !e as our first ca dle" the two should cross the same price le%el. 'he price le%el is hidi ! #etwee the two hori7o tal dashed li es =E= a d =<=. 4 this example" the hi!h price of the seco d ca dle at %ertical li e =C= is is the top ra !e of our price le%el .li e =E=/ a d li e =<= is the low price of that ca dle. 'hat,s easy to see #y the ra !e of %olume earlier a d the price le%el set #efore (ea$ =C=. 55 9F-A (ic$ data that is easy to read to start your tradi ! day with. =6ur first (rice )e%el has #ee detected at 1.:145 captai A= ;ow did we pic( *.-*4+: Three simple reasons 1 /ur price level0s price must end in !.! or !+! and i" you loo( care"ully at the rising interest (volume be"ore the second pea( at line !<!, we (now this price is much pre"erred over *.-*4. by the price candle activity. Thirdly, between line !=! and !<! our price climbed above *.-*4+ and then when it pea(ed at line !=! it "ell through *.-*4+. You can develop other reasons why *.-*4+ is supported over *.-*4., you need some sound reasons to pic( a level. 'onsider this "irst price level a very well educated guess and trade accordingly "ully aware o" the ris(s o" trading a very well educated guess. You can trade on it, 3ust don0t get coc(y2 'on"used: =s( "or &rice 7evel another way: )hat price cuts through 4 candles with the highest volumes near each other: )hat is happening be"ore and between these two candles with price and what is volume doing (i.e. lower between these 4 candles: 3ttached 'hum# ails

)here e9actly is the pea( you are tal(ing about here: (!be"ore the second pea( at line !<! ! I can0t seen to pinpoint a 4nd pea(, what pea(: -ee chart (ea$ C

(rice a d %olume are o e. )i e < is the upper price le%el ra !e .the hi!hest our price le%el ca #e/ !i%e the %olume data. 4t is i this example" the hi!hest price of that ca dle fou d i %ertical li e =C=. 0opefully the =(ea$ C= la#el o the chart ow helps.

Gule ; -tep Cy -tep 5 -tep 1 )et,s 8ust say 4 wa t to start tradi ! to i!ht" a d e%er traded #efore. 4 order to trade 4 eed to fi d some price le%els to trade too. 'hat way 4 ca e ter my orders a d exits. +irst" 4 eed to esta#lish a fairly co fide t price le%el with little data a%aila#le to me. 'his is a i itial refere ce poi t that 4 will start from a d #e a#le to watch how the price/%olume .(V/ mo%ed after this poi t. &he " 4 fi ally reach the curre t mar$et time" 4,ll ha%e price le%els set up" $ ow how price is mo%i ! a d #e ready to trade. -o first" 4 eed a clear i itial price le%el a d this is how 4 fi d it. 4 start #y loo$i ! at the chart a d ot !oi ! too far #ac$ i time to fi d a ice clear %olume spi$e .pea$/ that has a lar!e ca dle with it .price mo%eme t/. 4 the chart #elow 4 fi d o e" call it (ea$ 3 a d draw a red %ertical li e .=3=/ as a refere ce o the chart. ?ow let,s u dersta d what is happe i ! o this ca dle a d what has ta$e place earlier i time from this red refere ce li e o the chart. (rior to the )i e =3= the %olume was low a d price fairly flat" whe price crossed some u $ ow %alue the the floor fell out of the price a d the price too$ a #i! drop. 'his o e ca dle at li e 3 crosses a price le%el. 4t,s a price le%el" ot '0F price le%el. 'his is o e of hu dreds of price le%els that exist at this poi t i time" #ut we ca ,t see a y of them so we eed to fi d o e the mar$et is tradi ! o . 3ll we $ ow at this sta!e" is that their is a price le%el i the ca dle we pic$ed. 'he ca dle is lar!e a d has ma y price le%els from 1.:145 dow to 1.:110. &e ca ,t possi#ly determi e a price le%el to use with this ma y choices. -o" we fou d a ice #i! ca dle with the hi!hest %olume up to this poi t i time a d ow we eed to fi d a other refere ce poi t to arrow our price le%el ra !e. 3ttached 'hum# ails

Gule ; -tep Cy -tep 5 -tep 2 3lri!ht" we,%e esta#lished a refere ce time i space to try a d fi d a price le%el. 3t this sta!e we ha%e othi ! #ut a price ra !e of the ca dle .it,s hi a d lo price/ a d that this price ra !e had the most %olume for some time. -o" we eed to !o #ac$ i time o the chart a d !ra# some more data. &e eed a poi t i time where the same rules applied to -tep 1. +i d a hi!h %olume pea$ .spi$e/ with some lar!e price mo%eme t. 'he o ly catch is that this ca dle,s hi/lo price must #e i the same price ra !e as our pre%iously chose ca dle,s hi/lo price.... ot all of it" 8ust some of it 55 the less the #etter. Vertical li e =C= is draw at such a poi t i time. &e ha%e a %olume spi$e a d we ha%e a price ca dle i our pre%iously chose ca dle,s price ra !e. 'he closer i time to our first step,s refere ce li e the more rele%a t our data. 0owe%er" it is also helpful if we ha%e a few ca dles #etwee our two %olume pea$s as this will tell us much more i formatio " the them #ei ! side5#y5side. -o" ow we ha%e a !ree a d red refere ce li e o our chart. 'hey simply poi t to 2 lar!e ca dles i time with pea$ %olumes. &hat we ow $ ow is that for some reaso the mar$et has a i terest i these to ca dles more tha a y other for some time. 4t almost always poi ts to a price le%el .li e/ draw i the sa d #y traders where #uy/sell orders exist a d where traders will lau ch a trade. 6r" you could e%e say all the i dicator systems may ha%e used this price le%el for some decisio . &hat we do ,t $ ow is what that price le%el is yet. Cut we ow ha%e a price ra !e. ?ot #ad from 2 ca dles i time. 3ttached 'hum# ails

Gule ; -tep Cy -tep 5 -tep : ?ow remem#er" our 2 d smaller ca dle chose holds all the same results as the first ca dle we chose i that we ha%e a hilo price ra !e i a %olume pea$ that mea s a price le%el exists i the seco d chose ca dle somewhere. 'he ad%a ta!e ow is that our 2 d ca dle has a much smaller ra !e. -o we simply draw a hi a d lo price li e from this 2 d ca dle to esta#lish a hi price le%el limit a d a lo price le%el limit. Eall them li es =E= a d =<=. 'he o ly rele%a t of this hi/lo price ra !e is the portio of li es =E= a d =<= that cut throu!h our first ca dle. Note> I have simpli"ied the price level range selection "or the second candle to simpli"y the e9planation. )e could complicate the 4nd candle0s data range by reading the volumes prior to vertical 7ine !<! with much greater detail. ?or now, it is unnecessary. 6$" at this poi t i time we ha%e esta#lished a price le%el hi/lo ra !e where the price le%el ca #e fou d. -o let,s fi d the price le%el. 3ttached 'hum# ails

Gule ; -tep Cy -tep 5 -tep 4 &e $ ow that our price le%el *B-' e d i =5= or =0= as we except o other %alues. ?ow we simply wa t to fi d the price le%el that fits our chart the #est" #ased o the price ca dles at li e =3= a d li e =C= a d falls withi the price hi/lo of li e =E= a d =<=. &e could simply ar#itrarily put the price le%el li e as close to the middle of the price ra !e meeti ! our price e d rules of =5= or =0=. 6G &e could study the price/%olumes closely" especially #etwee our two ca dles to determi e how those prices were affected #y our yet to #e esta#lished price le%el li e. 6G &e could use a y um#er of our fa%ourite i dicators or systems to help esta#lish our price le%el li e. Geally" it does ,t matter too much as lo ! as our price e ds i with =5= or =0=. 4 chose 1.:415 #ecause it made the most se se #ased o price/%olumes #etwee my 2 ca dles. Gemem#er we ha%e 8ust esta#lished a price le%el" ot '0F price le%el. 6ur price le%el is ,t a !uess. 4 fact" with ama7i ! ease a d simplicity .if you ha%e u derstood this so far/ has #ee to esta#lish a price le%el that is %ery real a d mea i !ful. 4t,s ot '0F pri7e le%el" #ut of the hu dreds that existed i this historical period at this price le%el" ours had some of the most i terest i the mar$et. 'he chart #elow shows our %ery first price le%el li e placed o the chart. 'his price le%el is a refere ce tool to start with. &e are !oi ! to trace this price le%el a d fi d more ew price le%els as we pro!ress closer a d closer to our first li%e trade for the day .remem#er we started from othi !/. Cy the time we !et to our first trade for the day"

our price le%els will ha%e e ou!h data to #e extremely accurate. -tic$ with it. 'his will !et ridiculously simple o ce you follow alo ! for a while. 3ttached 'hum# ails

(rice )e%el Gules 85> Fsta#lishi ! (rice )e%els

6 ce we ha%e our first price le%el esta#lished we the wa t to mo%e forward from that poi t i time a d esta#lish a few more price le%els. Rule :. Locate Price Levels To O/en Mar-et 'his is a lesso i readi ! the price a d %olume chart. <e%il is i the details. Gemem#er we are esta#lishi ! price le%els #ased o sou d reaso i ! of the price/%olume relatio ship. Rule ;. Price Levels 0it Li-e Lego 'he price/%olume relatio ship esta#lishes a price le%el" so it is atural that the price le%el we add to our chart will fit. 'he chart #elow is the locatio of the ext price le%el that we fou d i the Gule ; example. 'he de%il is i the details. 3ttached 'hum# ails

+rom the chart i cluded with Gule >: Vertical )i e =3= is the %olume pea$ a d price mo%eme t we started with to fi d our first price le%el usi ! Gule ;. (rice )e%el 1 at 1.:140 is the first price le%el we fou d i our Gule ; example. Vertical )i e =C= is the ext lo!ical %olume pea$ with a lar!e price mo%eme t. (ea$ 3 a d (ea$ C are relati%ely close to each other a d at (ea$ C our ca dle is somewhat lar!er tha the rest #etwee li e =3= a d =C=. *ore importa t our ext price le%el stic$s out li$e a !old fili !. -tic$ a price le%el li e throu!h the ca dle at %ertical li e =C= .it must e d i =0= or =5=/. 4 chose 1.:100. ?ow loo$ at how the ca dles #etwee Vertical )i e =3= a d Vertical )i e =C= cross this price le%el 555 ?6& )66J 3' '0F V6)B*F- for these ca dlesA <o you see e%ery time the ca dle crosses our 1.:100 price le%el there was %olume mo%eme t. <etails 5 it is ot hu!e %olume differe tial" it is thou!h oticea#le for the co siste t raise i %olume across 1.:100. &here the ca dles mo%e off this 1.:100 price le%el #etwee %ertical li es =3= a d =C= the %olume drops. -o" simply put there is i terest at 1.:100 a d less i terest off this price le%el. ?ow" we ha%e 2 price le%els esta#lished 55 a d we still 3GF ?6' usi ! these to set up a tradeA 3ttached 'hum# ails

*o%i ! forward o the same chart. Vertical )i e =E= at %olume (F3J E is simply a co firmatio of our (rice )e%el at 1.:100. 'here is othi ! here to i dicate a y ew price le%el. -o added co fide ce that 1.:100 is a solid price le%el. 3ttached 'hum# ails

?ow $eep followi ! the chart alo ! a d 4 thi $ it is extremely easy to see how the ext fall i price occurred a d how easily it is to read it comi !" e%e if we $ ow a#out it. 'he chart #elow shows the ext (F3J < with ma8or price mo%eme t at Vertical )i e =<= 4*(6G'3?' (64?' 5 we ha%e esta#lished earlier that 1.:100 is our price le%el li e that the mar$et is i terested i .

'he price has #ee ho%eri ! a#o%e 1.:100 a d the i terest shri $i ! #etwee %ertical )i e =E= a d =<=. -o" this ca mea that price actio will occur whe the price crosses 1.:100 a d our #ets are the price will drop. &09? <e%il i the details. )oo$ at the ca dles that cross the price le%el at 1.:100 #etwee li es =E= a d =<=. ?6& )66J 3' '0F V6)B*F-A 3ll of the i terest is at 1.:100 a d there is o i terest a#o%e this price le%el. 4 practice whe we see this occurri ! li%e we would ha%e a ope short order prior to %ertical li e =<=. &e fou d the 1.:100 price le%el a d whe it crossed the mar$ets made a mo%e a d that,s we wa t to #e a part of. 4,m hopi ! this loo$s li$e a ridiculous simple a d easy way to ma$e some dollars #ecause it is. Dust read the charts. -o" lets $eep !oi ! so we ca catch up to the ope mar$et a d put this i to practice. 3ttached 'hum# ails

)et,s 8ump a little closer to what it is li$e to use Volume (rice )e%el 'radi ! .V()'/ i real tradi !. Bsi ! the chart #elow a d a few that follow" we,ll prete d the ca dlestic$ o the far ri!ht is the last closed" this way you ca see how V()' decisio s are made o the ru i acti%e tradi ! a d we should come up to the real time mar$et %ery soo . -o i pre%ious examples" 4,%e show you how we ha%e chose %ertical li es =3= throu!h =<=. -o after %ertical li e =<= we are loo$i ! for a ew price le%el to set to capture the lower e d price of tradi !.

)oo$ at li es =a=" =#= a d =c= #etwee (ea$ < a d (F3J F li es. 'he ca dle at li e =a= is the first lowest %olume .i terest/ price ra !e we cross after (F3J <. -o at this poi t i our head o ly . ot i the chart/ we will draw a price le%el li e at 1.:060 to act 8ust as a refere ce poi t i our mi d that we ha%e crossed some price threshold. 'he ca dle at li e =#= co ti ues to fall a d %olume .i terest/ has i creased" so we ow $ ow that mar$et i terest is still towards a lower price after our refere ce of 1.:060 a d pic$i ! up as we draw away from this price le%el. 'he ca dle at li e =c= is the lowest %olume ow to this poi t i time. 'his pretty well co forms we ha%e a price le%el somewhere #etwee 1.:050 a d 1.:060 a d at this %ery poi t we,d li$ely pic$ either 1.:050 or 1.:055. &e choose 1.:050 if we wa t to use the roc$ #ottom %olume price to this poi t" a d we use 1.:055 if we 8ust wa t to pic$ the a%era!e price le%el #etwee 50 a d 60. ?ow we are at (F3J F .the red %ertical li e/" the last closed ca dle we see. 4t is a pea$ at this poi t to us. 'he %olume has started to i crease after the price crossed 1.:050 so our ew price le%el will #e put o the chart at 1.:045 . ot yet see /. &he li%e tradi ! V()'" our locati ! of a ew price le%el will #e dy amic from ca dle to ca dle u til we approach a pea$ that loc$s a d co firms the price le%el. <o ,t pa ic alo ! the way that you are missi ! some !reat opportu ity for a trade" 8ust #ecause price passed a price le%el a d you had o e try. &ith V()' you will ha%e oodles of opportu ity for trades" so do ,t rush to e ter a y trade tryi ! to =catch up=. Dust pay atte tio to the de%il i the details a d follow alo !. 3ttached 'hum# ails

6 e ca dle forward a d we see our (F3J F remai s" a d our price le%el stays at 1.:045. ?ow our last ca dle was lo !" tryi ! to mo%e price #ac$ up from #elow 1.:045 to 1.:045. 4 terest .%olume/ is less for price to mo%e #ac$ up to 1.:045" so this is where we would wa t to e ter short at 1.:045. 4,m usi ! 1.:045 as a short e try for ease of clarity" #ut you may fi d it more #e eficial to actually ope a d close trades o the =4="=6="=>= or =1= price. 9ou eed to watch how your #ro$er respo ds" or if you trade li%e" you do ,t ha%e to sit there for the e try to #e exactly 1.:045. 'he poi t is we are e teri ! a trade short somewhere close to 1.:045. 4 this mode" where 4 ha%e o defi iti%e lower price le%el #elow my trade" 4,m tradi ! for 205:0 pips. 4,m tradi ! li%e" a d if 4 do fi d a lower price le%el that,s my exit" or 205:0 pips. *y stop the must #e lower tha 205:0 pips a d if you remem#er we had a =ima!i ary= price le%el #etwee 1.:050 a d 1.:060" 4,m opti ! for 1.:060 as my stop...15 pips. 4 do ,t li$e my stops too ti!ht. 3ttached 'hum# ails

Dump ahead a couple of ca dles a d 4,m feeli ! really !ood a#out this short e try. 'he ca dle has hit .clim#ed to/ our price le%el of 1.:040 a d the %olume .i terest/ is ot i the mar$et to !o up pass this price le%el. *y short trade is o A 3ttached 'hum# ails

)et,s $eep !oi !... 6J" so price is ow dippi !" %olume is up a d we may ha%e a other %olume pea$ formi !. 0ere it is = o !uts" o !lory=. 9ou could pull out of this trade a d ma$e 15520 pips. 'hat is a safe mo ey ma$i ! optio " a d a yo e who $ ows me would $ ow that 4,d #e yelli ! at you to !et out of the trade" #ecause if you ca ma$e 20 pips a day e%eryday" you are i comma d of your

+orex fi a cial future. 0owe%er" 4 $ ow the odds are hu!ely i my fa%our that price will $eep !oi ! dow " if 4 !et a pea$ here or %ery soo a d %olume dimi ishes if price rises. 'he o ly thi ! 4,m ow ris$i ! is a 5 pip loss as 4 drop my stop dow to 5 pips a#o%e e try. 9ou ca see we ha%e a possi#le price le%el here #ecause we may ha%e a pea$. Gi!ht ow this price le%el is 8ust a refere ce" #ut 4 put it o the chsrt for you to see. <o you see how this price le%el may #e formed? &ell first this ca dle a d %olume will eed to #ecome a pea$ for it to #e a true price le%el. &e $ ow whe price came dow to this le%el %olume .i terest/ i creased" a d whe it mo%ed up away from this le%el %olume .i terest/ we t dow . -o ri!ht ow this price le%el at 1.:0:0 has some mar$et i terest. 4t is 8ust as plausi#le that the price le%el may #e 1.:025" 4,%e 8ust chose 1.:0:0 #ecause it seems to fit #etter i my mi d. 4t is ar#itrary what you choose....sorry we 8ust ca ,t #e exact a d e d of day" 5 pips really is the fud!e factor a d trust me" really does ,t come i to play that ofte . 3ttached 'hum# ails

3 couple of more ca dles forward" price !oes up" %olume !oes dow " we ha%e a ew pea$ =+= so our price le%el stic$s a d 4 put it at 1.:0:0. &e $ ow exactly what will happe you a ythi !....short trade....hi t. 3ttached 'hum# ails ow do we ot? &ell 4,m still i my trade if that tells

(ro#a#ly 4 should reca t that a d say the price a d %olume wor$i ! to!ether shows us e%erythi !. 4 was assumi ! the price part with the ori!i al words whe writte . 4t really does ,t matter what the %olume i dicator shows. 4t,s relati%e. 3s lo ! as it stays co siste t with price mo%eme t" that is what matters a#out the %olume i dicator. 3 d the pro#a#ly o o e li$es that a swer who read it. 6$" let,s assume the for a mi ute that e%ery trader" #uyer a d seller of +orex is !e erally wor$i ! towards e teri ! their trades o the same relati%e price actio s. 4f that is true" which 4 fi d it is" the as lo ! as you treat %olume a d price actio as o e si !le i dicator" the it all wor$s. 'here is a %ery fi e li e to cross i deed to start usi ! the %olume i dicator alo e" without loo$i ! at what price is doi !. *y lo!ic #ehi d the %olume a d price to!ether is to fi d price le%els a d %erify where they are. 4 suppose 4" or a yo e could use a y um#er of other i dicators to do the same #ut 4 fi d si ce it is so easy with %olume/price to!ether" why use a ythi ! else? Bltimately we are tradi ! price le%els" ot %olume. 4f %olume is ot wor$i ! with price it shows up fairly 2uic$ #ecuase the price le%els will ot" or will %olume/price show you a y price le%els that wor$. 4,%e e%er see the pro#lem arise" a d it is co siste t. -o ultimately as lo ! as 4 ha%e co siste cy" 4,m happy. Volume is pro#a#ly a #ro$er,s tic$s" li$e 4 said does ,t really matter. (rice/%olume are !oi ! to mo%e o mar$et i terest #ut %olume will mo%e relati%e to itself with price...so e%e if it is associated with less mo ey %olume" that less mo ey %olume will #e relati%e to price. 'hat is why the life spa of price le%els is short a d they are co sta tly dy amic. Volume pea$s with price mo%eme ts will mar$ a price le%el...a d that relati%ity #efore a d after is co siste tly curre t with price actio ...re!ardless of what %olume really measures.

'ech ically" somethi ! li$e the stochastics .or a y oscillator/ i dicator has the same issue. 'he mo%eme t of a oscillator is relati%e to the curre t price actio #e that 5 pips or 100 pips...the oscillator does ,t care how ma y pips" 8ust how price mo%es relati%e to itself a d where the oscillator is. 9ou ca set price le%els with a oscillator" !et the same results as you would with the %olume i dicator 55 #ut oh" is it pai ful to do compared to usi ! price/%olume. Volume (rice )e%els is de%eloped from the old =read the tape= process we traders used lo ! #efore home computers were at our disposal. 4 date myself" #ut i the =old= days the most efficie t way to trade was with price a d %olume. V()' is !row out of that a d a !reat deal of time 4,%e spe t with stochastics. 'he methodolo!y you see here is the %olume/price side of a more defi ed stochastics tool 4,%e #ee de%elopi ! o%er the years. 0owe%er V()' is a %ery stro ! tool as 4 ha%e reali7ed o it,s ow " whether that is simply #y accide t i applyi ! stochastics thou!ht to it" or 4,%e su#co sciously ha%e do e what 4 wa ted to do a d 8ust do ,t eed the stochastic portio to #e as %isi#le as a separate i dicator as 4 pre%iously thou!ht. 3 yways" 4,%e #ee extremely happy with the results. 4 do ,t trade to wi " 4 trade to ear . 4f you apply this ri!ht" the you should #e a#le to trade with co fide ce a d ear mo ey co siste tly from your trades. 0ow ma y trades you wi " wo ,t matter as much as how well you ca trade a d ma a!e your #a $ roll. V()' ear s me mo ey co siste toy" so does stochastics tradi !. 'o me that is all that matters. Eo siste t pips. Dust a word of cautio 5 4 ha%e ot explai ed e%erythi ! yet. 4f you are tradi ! this for real" 4 su!!est ot yet. (ractice o fi di ! price le%els a d trade e try/directio " #ut ot li%e trades yet. )et me !et throu!h this. 4t,s a le !thy su#8ect #ut we are !etti ! there. 6 e thi ! you wa t to esta#lish are price le%els for the mar$et at least 12524 hours i ad%a ce of where you trade .i.e. !o #ac$ i the chart a #it/. 'he more dili!e ce you put i to exami i ! what the mar$et is doi ! prior to tradi ! a d u dersta di ! it" the easier it will #e to set yourself up for trades .successful/ mo%i ! forward i to your trade day. ?ext rou d of examples 4,ll start as a ormal trade day a d !o throu!h some trades as 4 did them. 4,ll start as if 4 ha%e o prior $ owled!e of the mar$et co ditio s. 3fter that" 4,ll #e !lad to loo$ at your trades a d #e !lad to help. .4 do ,t wa t to start yet" as 4 may a swer your 2uestio s with the upcomi ! i fo/. 4f you wa t to try a d set price le%els for the ;th" 4,ll #e !lad to re%iew them if you are stuc$ or ot co fide t. 4t mi!ht #e i teresti ! to see how much %aria ce we !et with

se%eral people setti ! price le%els for a day. 'rust me o ce you do this for a few days" you ca pop price le%els up i 8ust a few mi s....it is super easy" 8ust watch the de%il i the details.

V()' 'G3<F &3)J '0G6BH0 D3? ;th5+4G-' 'G3<F -F'B(

FBG/B-< *15 Volume 4 dicator *'4 1. Ho #ac$ i the chart a d fi d 2 clear %olume pea$s i the %olume i dicator. 4 ha%e mar$ed them o the chart #elow as (ea$ 3 a d (ea$ C. 'he red %ertical li es =3= a d =C= ru throu!h 2 ca dles. 6ur first price le%el ru s throu!h these ca dles.

3ttached 'hum# ails

V()' 'G3<F &3)J '0G6BH0 D3? ;th5+4G-' 'G3<F -F'B(

FBG/B-< *15 Volume 4 dicator *'4 2. 6ur price le%el must e d i =5= or =0=. 'he ra !e of the first ca dle o %ertical li e =3= is #etwee 1.:066> a d 1.:0;1>. 'here is o ly o e possi#le price le%el that cuts throu!h this ca dle at 1.:0;0. 'he first price le%el is fou d. <raw o chart. 'he ca dle at (ea$ C .%ertical li e =C=/ also cuts throu!h our first price le%el. 'his price le%el is co firmed. 'hi !s to otice: 3fter (ea$ 3" the price 8umps up to 1.:085" #ut there is o i terest .%olume/ at this price le%el. 3s the price starts to desce d towards (ea$ C .%ertical li e =C=/" the %olume pic$s up" u til price crosses our price le%el at %ertical li e =C=. 'his is a %ery co firmed price le%el. ?ote i your mi d that i terest .%olume/ pic$ed up as price desce ded across our price le%el. Dust ote it" it does ,t mea a ythi ! yet.

3ttached 'hum# ails

V()' 'G3<F &3)J '0G6BH0 D3? ;th5+4G-' 'G3<F -F'B(

FBG/B-< *15 Volume 4 dicator *'4 :. (ea$ E a d (ea$ < are our ext 2 clearest i terest .%olume/ pea$s. &e are pic$i ! clear defi ed pea$s to esta#lish price le%els #efore we e ter a trade. &e ca #e choosy a#out how clearly defi ed our pea$s are at this sta!e. +i di ! the price that cuts throu!h the ca dles at %ertical li e =E= a d %ertical li e =<= re2uires readi ! the i terest i price .throu!h the %olume/price relatio ship/. 'he de%il is i the details.

3ttached 'hum# ails

V()' 'G3<F &3)J '0G6BH0 D3? ;th5+4G-' 'G3<F -F'B(

FBG/B-< *15 Volume 4 dicator *'4 4. &e $ ow the price le%el must i tersect #oth ca dles at %ertical li e =E= a d %ertical li e =<=. 4 ha%e ma$ed where the price le%el will fall #etwee #y 2 !ree dashed li es o the chart. -i e price le%els e d i =5= or =0=" we o ly ha%e 2 possi#ilities for our ew price le%el@ 1.:045 a d 1.:050. 'hese are the o ly price le%els that fit our price le%el rules.

3ttached 'hum# ails

V()' 'G3<F &3)J '0G6BH0 D3? ;th5+4G-' 'G3<F -F'B(

FBG/B-< *15 Volume 4 dicator *'4

5. Gead the price/%olume relatio ship #etwee %ertical li es =E= a d =<=. Fach time our price mo%es away
.up/ from 1.:050" i terest .%olume/ decreases. Fach time our price mo%es closer towards .dow / to 1.:050" i terest .%olume/ i creases. 'herefore 1.:050 is clearly a ew price le%el. &he the price crosses 1.:050" the price drops a d creates (F3J < at %ertical li e =<=

3ttached 'hum# ails

V()' 'G3<F &3)J '0G6BH0 D3? ;th5+4G-' 'G3<F -F'B(

FBG/B-< *15 Volume 4 dicator *'4 6. Very importa t co cept here. 3t (ea$ F" %ertical li e =F= we will yet a!ai esta#lish a other price le%el at 1.:0:5. 9ou ca see how 4 !ot that #y readi ! the price/%olume mo%eme t away/towards this price li e. 4t should #e clear as day. (rice away .up/ %olume wea$e s" towards dow %oluem stre !the s. )oo$ at the details. <6 ?6' read each ca dle i di%idually. Gead the price mo%eme t/%olume to!ether. -ee it? ?ow loo$ at all our pea$s a d loo$ at what price did at each of them. 3t each pea$ price has falle throu!h our price le%els.

3ttached 'hum# ails

V()' 'G3<F &3)J '0G6BH0 D3? ;th5+4G-' 'G3<F -F'B(

FBG/B-< *15 Volume 4 dicator *'4 ;. &he price clim#s from %ertical li e =F= we are watchi ! the i terest %olume clim# to the price le%el we fou d at 1.:050. &he price clim#s across .or ears we do ,t ha%e to #e exact/ we are e teri ! out trade short at 1.:050 a d our stop at the ext hi!her price le%el 1.:0;0. &hy? &hy am 4 ot !oi ! lo !? &ell we ca a ticipate that our i terest .%olume/ is pea$i ! a d si ce e%ery other pea$ so far has resulted i price crossi ! dow it would seem the most lo!ical play to !o short. 4t is possi#le the mar$et cha !es directio a d !oes up a d the we simply hit our stop a d lose 20 pips. 4t is ours to decide" a d 4,ll !o with what the mar$et has #ee telli ! me. 4 terest i the dow price. 'here is also o e other si! al to !o dow . +rom our %ertical li e =3= to our trade e try you ca see : disti ct price le%el drops a d with each drop there the collecti%e i terest .%olume/ is i creasi !. 'hat would i dicate that th e mar$et is far more i terested i the 1.:0:5 price tha the 1.:0;0 price. 'hat,s the trade e try. +or exit we ha%e 2 choices. 'a$e our pips whe we reach 1.:0:5 .safe/. Ho with mar$er se time t a d expect a other price le%el #elow 1.:0:5. 9ou mi!ht tar!et 1.:020" 1.:010 or 1.:000" 8ust remem#er the further you tar!et away from our #ottom price le%el the more ris$ you are ta$i !. 4deally" si ce our stop is 20 pips away" our ear i !s should #e at least 20 pips to ma$e the ris$/rewards at least e%e " so i that re!ard a exit at 1.:0:0 is a !ood trade tar!et as it is o ly 5 pips #elow our #ottom price le%el.

3ttached 'hum# ails

V()' 'G3<F &3)J '0G6BH0 D3? ;th5+4G-' 'G3<F -F'B(

FBG/B-< *15 Volume 4 dicator *'4 8. +irst trade is do e if you exited at or a#o%e 1.:020. ?ow price/%olume made a ew (ea$ + at %ertical li e =+=. 3t %ertical li e =+= we eed to #e loo$i ! for a ew lower price le%el. Gemem#er whe we ope ed the trade o e optio was to follow the price dow to a ew lower price le%el tha 1.:0:5. 'he price o#%iously hit this ew lower le%el a d ow from the price/%olume mo%eme t we eed to fi!ure out where this ew lower price le%el is.

'he !ree price le%el li e for ow is 8ust a refere ce li e to exami e the price/%olume mo%eme t after %ertical li e =+=. 3s price mo%es away from .clim#s/" our %olume !oes dow " a d whe price mo%es #ac$ dow towards 1.:020 the %olume !oes dow ? <id the price mo%e dow ? ?o" the ca dles..all three the price mo%ed up a d away from 1.020 a d %olume we t dow . 'his ca #e a hard o e to see a d easily missed.

3ttached 'hum# ails

V()' 'G3<F &3)J '0G6BH0 D3? ;th5+4G-' 'G3<F -F'B(

FBG/B-< *15 Volume 4 dicator *'4 >. )et,s say we miss this price/%olume mo%e a d i stead try a price le%el at 1.:0:0. 9ou ca see that does ,t wor$. 3s price !oes up towards this 1.:0:0 le%el the %olume should !o up. 4t does ,t. -o" ow we,%e #ee a#le to catch our error. 6ur ew price le%el should #e at 1.:020 .if it was at 1.:025 the our %olume would ha%e !o e up whe price clim#ed to it/.

3ttached 'hum# ails

V()' 'G3<F &3)J '0G6BH0 D3? ;th5+4G-' 'G3<F -F'B(

FBG/B-< *15 Volume 4 dicator *'4 10. 6ur ew price le%el is set at 1.:020. ?ow we $ ow that if price !oes up towards 1.:0:5" %olume will !o dow . &e also $ ow that if price !oes dow towards 1.:020" %olume will rise. -o where is the trade e try? Gead the a#o%e se te ces a!ai . 'he o#%ious choice is a lo ! e try at 1.:020. 4f the price !oes up %olume will !o dow so i order for %olume to pea$ a!ai or start to rise our price will ha%e to reach 1.:020. 3s well" if price !oes dow a d touches 1.:020 tha %olume will !o up" so o matter how you slice it the trade is at 1.:020. )o !? Gemem#er our decisio to !o short i our last trade at 1.:050 was #ecause i terest .%olume/ was risi ! as price rose to this le%el. 6ur decisio to !o short was to follow the pre%ious mar$et mo%es where price we t dow across each price le%el at the pea$s. -o ow we would !et a other pea$ if price ow crossed dow #elow 1.:020. 0owe%er" we ca ,t for!et that %olume rose as price rose to 1.:050 a d the after reachi ! this price le%el dropped. -o that,s our tar!et" we are expecti ! price to fall to 1.:020 a d the clim# towards 1.:050. 'he other decisio of course to !o short at 1.:020 ca #e 8ustified 5 #ut we ha%e o data to !o #elow 1.:020. 4 our pre%ious short trade" we had data to !o #elow 1.:050. &e ha%e to trade where the price le%els are 5 we do ,t wa t to #e explorers i to the u $ ow . -o" we #uy at 1.:020" set our stop at 1.:005 a d our tar!et exit is 1.:0:5. -top was chose e2ual to our ris$" as close as we ca . (utti ! a stop out i the u $ ow is ris$y" so $eep the ris$ reward 1:1 or #etter. Fxit is the first price le%el" that is safe.

3ttached 'hum# ails

V()' 'G3<F &3)J '0G6BH0 D3? ;th5+4G-' 'G3<F -F'B(

FBG/B-< *15 Volume 4 dicator *'4 11. &ell this was ,t the ideal expectatio of price/%olume mo%eme t" #ut we did !et our lo ! #uy i at 1.:020. (rice a d %olume rose. 'his all fits our data a d it is ot hard to i terpret what 8ust happe ed. (rice ope ed sli!htly hi!her o this ca dle" %olumes dropped" price dropped" %olumes rose" price hit the #ottom price le%el of 1.:020 which was a.........'G4HHFG.......a d price we t up. 'he %olume came whe price we t dow to 1.:020" ot o the way up to 1.:0:5. Geally that does ,t matter. Gi!ht at this mome t we ha%e a %olume pea$" we ha%e to treat this as a %olume pea$. &hich mea s we eed to loo$ at price le%els.

3ttached 'hum# ails

V()' 'G3<F &3)J '0G6BH0 D3? ;th5+4G-' 'G3<F -F'B(

FBG/B-< *15 Volume 4 dicator *'4 12. )oo$i ! at the chart a d (ea$ + a d our ew (ea$" there is o ew price le%el. 'his pea$ has o ly co firmed our thou!ht at trade" that i terest .%olume/ is towards the hi!her 1.:050 price le%el. Volume is !oi ! dow #ecause either way price mo%es" up or dow " we will mo%e away from the 1.:0:5 price le%el. 3fter that" %olume will i crease if we mo%e toward 1.:050 a d should decrease if we mo%e away from 1.:050. 'here,s a other lo ! trade here at 1.:0:5. Fxit tar!et is 1.:050 .upper price le%el/. -top is 1.:020 .lower price le%el/.

3ttached 'hum# ails

V()' 'G3<F &3)J '0G6BH0 D3? ;th5+4G-' 'G3<F -F'B(

FBG/B-< *15 Volume 4 dicator *'4 1:. -o" as we expected price is mo%i ! towards 1.:050 a d so is %olume. 0ere it is a little tric$y. 3t this poi t i time we ha%e a ew pea$. &e ha%e to assume it is a ew pea$. 'he et affect is that it creates a ew price le%el 1.:045. 4f it is a ew pea$" tha %olume will decrease a d price will fall. 3 !ood time to e ter a short trade. 4f it is ot a ew pea$" the price a d %olume will rise a d we will reach 1.:050. 'he correct mo%e is to !o with what the data tells us ow. Fxit our trade at 1.:045" a d e ter a short trade. &e ha%e to trade with what the data tells us at the time we $ ow it .e d of ca dle/. -o this is effecti%ely a re%erse of the trade we 8ust made.

3ttached 'hum# ails

?ope" you ha%e it ri!ht. 3s price was risi !" %olume was falli !. )oo$ #ac$ at post 104" that mi!ht help. 4f ot" the rest of post 106 !a%e the reaso for the switch i directio . 4 terest was i the lower price le%el" #ut 8ust that lower price le%el. Volume would ha%e i creased if price we t dow ...that is as you u dersta d it. 'he #est way to see it u fold is to loo$ at how the price/%olume mo%ed later after this. 4f you ta$e the 10 ca dles after %ertical li e =+= a d #asically pic$ it up a d copy it where %ertical li e =H= is" the you should see it a little clearer. 'his is what would ha%e happe ed if price dropped" the price would ha%e clim#ed steadily up. 'he o ly differe ce is that at =H=" e%erythi ! would 8ust ha%e dipped lower dow i price #efore clim#i ! #ac$ up across 1.:020. -o we are expecti ! that at first price will fall a d %olumes will rise" a d the the tur " where prices will rise with %olume. (rices are !oi ! to rise #ecause they are headed to a price le%el of i terest...so as price clim#s closer %olume will !o up. 0ere the hi!her price le%el has !reater i terest tha the lower o e. 0ope that co%ered it.

(rice le%els. 4 thi $ you will see the mo%e a lot #etter with a price le%el. 4t,s a pretty easy o e to see at 1.:120. ?ow the price/%olume mo%es should ma$e more se se. 'here,s less i terest i price a#o%e 1.:120...#ut. .4 apolo!i7e if 4 ha%e the price %alue wro !" hard to see it o my filthy laptop scree / <e%il i the details. 'here is a other price le%el a#o%e at 1.:1:0 that is messi ! with our %olumes. Dust #efore ca dle 3 our price/%oume is clim#i ! a d reachi ! 1.:1:0. Ea dle 3 falls throu!h #oth price le%els" 1.:1:0 a d 1.:120" that results i a %olume spi$e. ?ext ca dle price falls away from 1.:120 a d i terest does ,t wa e too much .%olume stays pretty flat/ ?ext : ca dles price clim#s a d %olume falls" we cross ri!ht up a d throu!h 1.:120 price le%el. -o" i terest is ot i !oi ! up o%er 1.:120. &he the ext ca dle drops a d %olume is up the i terest is at price comi ! dow #elow 1.:120. Hetti ! repeteti%e is ,t it. 0ere is somethi ! really coolA &he the price clim#s a!ai up past 1.:120 %olume fades......a d the pic$s up pushi ! price towards 1.:1:0. ?ow if you are really o your !ame" you,d #e all o%er this 10 pip clim# to !o short at 1.:1:0 or as close to that as possi#le...this is a pure mo ey !ra# 555 we already esta#lished price will fall dow throu!h 1.:120. 3fter this cross at 1.:1:0" there,s o i terest i price !oi ! hi!her a d the #ottom falls out at Ea dle C. 3t this poi t we should already #e i the trade a d ridi ! ca dle C dow or the safe e try if you missed the !reed mo%e would ha%e pic$ed up the trade at 1.:120 'he rest is 8ust ta$e your pips. 9ou would ha%e a other price le%el lower to exit o or re5 assess the dow ward ru . 3lways trade from/to price le%els .or close %ici ity/ 5 these are the mar$et tar!ets. 0opefully that added some clarity.

3 )i%e 'rade Fxample

FBG/B-< Da 8 ;pm F-' 4t is a#out 6:45pm F-' a d 4,m 8ust setti ! up for a trade. 4,%e esta#lished my price le%els .hori7o tal !ree li es/ usi ! the %olume pea$s/price ca dles at the %ertical red li es. 3t this time 4,m co fide t i e teri ! a short trade either off the 1.:080 price le%el" a d if price clim#s 4,ll !ra# a other short trade at 1.:085. 'he 1.:085 is 8ust extra pips. 4 put a exit at the #ottom price le%el 1.:065@ a d a -'6( at 1:1 ris$/ear i !s so 1.:105. 'hat stop is really way too hi!h" #ut 4,m really ot worried 4 will hit it. &hat is happe i ! with price/%olume here is that mar$et i terest is arou d the 1.:080. 'here is some additio al i terest i price crossi ! 1.:085" #ut after that le%el i terest i price !oi ! hi!her is much less. (rice mo%i ! dow throu!h 1.:080 is !etti ! the most i terest. -o" ideally price will rise a#o%e 1.:085 a d the fall. *y orders are placed at close of 6:45 pm ca dle 5 so ;pm 3ttached 'hum# ails

3 )i%e 'rade Fxample

FBG/B-< Da 8 ;:005;:15 pm F-' *y 1.:080 short order is missed #ut my 1.:085 is short order is ope ed whe price mo%ed up throu!h 1.:085. 4,m a little surprised #y the stre !th of the price mo%e up past 1.:085 #ut ot worried. 'he i terest .%olume/ rise as price mo%ed a#o%e 1.:085 is expected. 4f 4 was !reedy" 4 mi!ht s a! a other short order here" #ut with 2 ope orders a d !etti ! my #o us order at 1.:085 ope " 4,m co te t. 3ttached 'hum# ails

3 )i%e 'rade Fxample

FBG/B-< Da 8 ;:155;::0 pm F-'

4t,s pretty o#%ious from the mome t the ca dle ope s a d 5 mi s i to the ca dle that price has pretty well had it for !oi ! up. 4,m 8ust relaxi ! ow" waiti ! for the dow play. 3ttached 'hum# ails

3 )i%e 'rade Fxample

FBG/B-< Da 8 ;::0 5 ;::8ish pm F-' 'he ca dle ope ed with a #a !" price too$ a 2uic$ drop. *y 1.:080 order is ow ope a d as the ca dle crossed the 1.:080 price le%el %olume started risi !. 4 mo%ed my stop dow " o poi t of it #ei ! way up there a ymore" a d 4 decided with #oth ope short orders 4,d mo%e my exit to 1.:0;0 5 this is a easy 25 pip !ai .10 K 15 pips i 2 orders/ so !ra# my pips a d !o. 1.:0;0 is a ice safe le%el" ot #rea$i ! a y ew territory a d it loo$ed li$e 4,d !et out i this ca dle 5 so 4 could !o write a#out this trade i ++ +i al -y opsis 5 a fairly typical .u exciti !/ trade. 4 did ,t expect the price to mo%e that 2uic$ly dow a d !i%e the speed at which it was mo%i !" 4 8ust decided to !ra# my ear i !s. 4t would #e #etter to re5assess the price le%els a d price/%olume after this lo ! dow ca dle a d determi e the ext mo%es. 9ou should #e a#le to see how mar$et i terest was lost chasi ! a price a#o%e 1.:085 a d that the mar$et i terest was i a dow ward price falli ! from 1.:080. 4 this case 1.:085 was 8ust a added #o us....cau!ht it" so why ot profit from it. 'he 1.:080 price le%el was determi ed from the 2 ca dles that the last 2 %ertical red li es ru throu!h. 4 purposely loo$ed at 6:45 to defi e a d 8ustify a price le%el at 1.:080" si ce a price le%el o#%iously fit .li$e le!o/ here. 4,%e !ot my 2 %olume pea$s a d the ca dles i tersect at o ly o e price that e ds i =0= or =5= 'he 1.:085 price le%el was determi ed much further #ac$ i the chart at the 4th/5th %ertical red li es from the ri!ht of the chart. 3!ai 2 pea$s" o e choice for price le%el. 4

fou d 1.:085 earlier today arou d >::0 F-' a d had traded that short 5 it was %ery similar to this last trade 4 docume ted" i fact almost a exact duplicate except with o ly the o e e try. -o that,s how 4 made 40 pips today usi ! V()'" 4 hope you ca see it is a pretty strai!ht forward a d calm process. 'he secret is i those price le%els" price/%olume mo%eme t .to!ether/ arou d those price le%els a d most importa t 5 the de%ils i the details. 0opefully" you ca see price le%els are ot a scie ce. 'hey 8ust ha%e to #e 8ustified" a d they fit .li$e le!o/. ...s ap ri!ht i . 3ttached 'hum# ails

4t does ,t matter what %olume measures .i tems of #ro$er tic$s" trades" dollars" etc/ as lo ! as it remai s co siste t with price. &he " 4 say co siste t" 4 mea that the #ro$er is always usi !" say trade %olume" a d does ,t switch it up half way throu!h your day. -o" ot li$ely that the #ro$er is !oi ! to cha !e what they measure i %olume a y time soo . (rice a d %olume mo%es to!ether do mea somethi !. Volume is a relati%e measureme t" o differe t tha a y oscillator i dicator. Volume le%els do ot tell you =how much= price mo%es" price mo%es tell you how much price mo%es. 'he reaso this is called Volume (rice )e%el 'radi ! is #ecause whe price mo%es towards/away from a price le%el" %olume .i terest/ i that price le%el will i crease or decrease. 4f you do ,t li$e %olume" you ca use a y relati%e i dicator to do the same thi !. 0owe%er" 4 use %olume #ecause it is so simple a d 2uic$...a d most of all" it wor$s relia#ly a d co siste tly...a d i tradi ! for a li%i%i !" that is what you wa t the most.

4 ha%e o dou#t people will see %olume a d poo5poo all o%er %olume. Cecause all they see is %olume a d e%er loo$ at the relatio ship #etwee %olume a d price to!ether a d how it wor$s whe crossi ! differe t price le%els. -o yes" you are correct 5 %olume #y itself is useless. 0owe%er" this forum is ot a#out %olume #y itself.

&evil In The &etails < #=/ert Info 4 ha%e discussed o e way to set price le%els. &hat 4,m a#out to discuss here is how to read price/%olume. 4,%e explai ed %olume = i terest. (rice is our compass. -o price/%olume as a com#i atio =poi t at mar$et i terest=. ?ow" let,s co sider e%erythi ! pre%ious to this as the #asics. ?ow as =experts= i V()' we will ope the chart up a d read it li$e a #oo$. 3s such" our focus ow is to read price/%olume as it mo%es arou d a price le%el. Cest way is to 8ump ri!ht i a d start. 4,ll start with a 20 ca dle se2ue ce i rece t history....4 8ust pic$ed it #ecause it is the most rece t. -o" fresh chart FBG/B-< *15. 'his is a li%e chart so the chart picture may cha !e a #it as we pro!ress. 4,m 7oomed way i . 3ttached 'hum# ails

+irst thi ! 4 eed is a price le%el. 'he price le%el is 8ust a refere ce li e that price/%olume mo%es arou d a d reacts too. 6 ce the price le%el is esta#lished we ca start readi ! the price/%olume. -o" to fi d my first price le%el" 4 pic$ed out : pea$s ear the left side of the chart. 4 wa t to read the ca dles from left to ri!ht" a d 4 wa t to focus o fi di ! a price le%el that fits the ca dles o the ri!ht side of the chart. 4 drew : strai!ht %ertical red li es from : %olume pea$s .spi$es/ throu!h there correspo di ! price ca dles.

4 the drew a hori7o tal price le%el at the o ly price that e ds i =5= or =0= that !oes throu!h all : ca dles. .+94: if the price le%el arrowly misses a ca dle" o #i! deal/. 3ttached 'hum# ails

3lri!htA ?ow the fu part. )et,s start readi ! the chart from the first price ca dle to the ri!ht of our ri!ht most %ertical red li e .where the !ree up arrow is/" a d pro!ress ca dle #y ca dle. .1>:15 ca dle Da >/ 3t the %olume pea$" price came up throu!h our price le%el" this mo%eme t across a price le%el typically !e erates more i terest .%olume/ he ce this is why pea$s !e erally slice throu!h a ca dle. *ore .i terest/ %olume #ecause !e erally the most orders will #e executed o at the =5= or =0= price a d i this case 1.:055. Ea dle 1 .1>:15/: <ow . (rice ope ed a#o%e our price le%el" there was less i terest i price #ei ! a#o%e 1.:055 after price crossed the 1.:055 price le%el. Ea dle 2 .1>::0/: Bp. )ess i terest i a up ca dle .%olume dow /" so there is less i terest i price tryi ! to rise hi!her. 1.:060 seems to ri!ht ow #e the upper limit of price le%els. Ea dle : .1>:45/: <ow . Ea dle sliced throu!h the 1.:055 price le%el a d i terest .%olume/ i creased" #ut ot as much as whe the ca dle cut up throu!h the price le%el at 1.:055 at 1>:00. Ea dle 4 .20:00/: Bp: -mall price clim# with little i terest .%olume/. (rice le%el is ow firmly co firmed at 1.:055 with a te de cy to #e more i terest .%olume/ with price risi ! up throu!h 1.:055. Hood e try for a lo ! trade for short pips to 1.:060. Ea dle 5 .20:15/: Bp: )ar!e upward price mo%e cut up throu!h the price le%el a d we t

throu!h the upper price limit we saw i ca dle 2 of 1.:060. &e,ll eed to ad8ust our chart with a ew price le%el at 1.:060. 3ttached 'hum# ails

&e,%e had to add a ew price le%el at 1.:060. 'he %olume pea$ is small" #ut what is really defi i ! this price le%el is that we,%e had : ca dles 8ust pass throu!h this le%el" #ut othi ! else. Ea dle 6 .20::0/: <ow . +urther support that price does ,t wa t to !o much hi!her tha 1.:060. 3s expected i terest .%olume/ is dow i a hi!her price. Ea dle ; .20:45/: Bp. (rice clim#ed #ac$ up a#o%e our 1.:060 price le%el a d i terest is up #ecause of this. 0owe%er" price is hi!her #ut i terest lower tha i ca dle 5. -o there is little li$elie hood at this poi t price will !o a y or much hi!her. Ea dle 8 .21:00/ Bp. (rice is !oi ! to try the 1.:065 le%el" %olume is less . o i terest/ so this price le%el will ot hold. 4f there was i terest i a 1.:065 price le%el" %olume would ha%e i creased. Hood time for a short e try a d catch a few pips to 1.:055. -mall ra !es" #ut sure price mo%es" why ot ma$e some small pip trades. Ea dle > .21:15/ <ow . -imple co firmatio of 1.:065 le%el ot holdi ! a y i terest. Ea dle 10 .21::0/ <ow . (rice has started to mo%e #ac$ dow towards our 1.:060 price le%el which has i creased i terest .%olume/. 3ttached 'hum# ails

Ea dle 11 .21:45/: Bp. (rice has #ee droppi ! for the last : ca dles a d i terest .%olume/ has pic$ed up. (rice touches the 1.:060 le%el a d %olume pea$s" so that is as expected. 'he price le%el is at 1.:060 a d this is where the i terest is at. Hoi ! dow . Ea dle 12 .22:00/: <ow . 4 terest .%olume/ is dow . &e $ ow price a#o%e 1.:060 is dead" so o i terest there. 'he dow ward mo%e i price across 1.:060 price le%el should ha%e spar$ed some i terest #ut it did ot. -o" the mar$et does ,t ha%e a y i terest i a 1.:065 price a d there seems to #e little i terest at 1.:060 price le%el. 4 terest defi itely is ot i a upward price mo%e. -o" o ly o e directio to !o" dow . Ea dle 1: .22:15/: <ow . 3 tric$y play. (rice is followi ! dow a d o cha !e i i terest. &e,d expect a i crease i i terest if price was falli ! towards 1.:055. &e $ ow our directio ca o ly #e dow " so we ha%e to co clude that the lac$ of i terest is #ecause we are followi ! away from the hi!her 1.:060. 'he other assumptio of price tur i ! up 8ust does ,t ma$e a lot of se se" thou!h possi#le" the odds ha%e to #e i fa%our of price dow . Ea dle 14 .22::0/: <ow . 'hat,s #etter. Dust what we expect with price !oi ! dow a d touchi ! our 1.:055 price le%el a d i terest .%olume/ !oi ! up. 'otal co firmatio a!ai of 1.:055 price le%el a d that mar$et i terest is at 1.:055. Ea dle 15 .22:45/: <ow . ?ow what? (rice crosses dow across 1.:055 a d i terest is less. )oo$s li$e the mar$et is co te t withi our 2 price le%els. +or ow the mar$et li$es 1.:055. 3ttached 'hum# ails

Ea dle 16 .2::00/: <ow . (rice crosses 1.:055" a d %olume is up. ?othi ! really u expected here as we $ ow the mar$et li$es 1.:055 price le%el. Ea dle 1; .2::15/: Bp. 9ep...#ori !. (rice a d mar$et is stuc$ at 1.:055. (rice clim#s closer to 1.:055 a d i terest is up. Ea dle 18 .2:::0/: <ow . (rice dow " i terest drops as we mo%e away from 1.:055. &e ha%e a ew pea$ from ca dle 1; a d close too #ut ot yet a price le%el formi ! possi#ly at 1.:050. +or ow" 8ust a refere ce as price does ,t wa t to seem to !o to 1.:050 a d the mar$et is still co cer ed with 1.:055. Ea dle 1> .2::45/: Bp. (rice up" i terest drops. ?ot a lot of price cha !e a d mar$et still showi ! it does ,t li$e #ei ! #elow 1.:055. Ea dle 20 .24:00/: Bp. -ame story" mar$et wa ts to #e at 1.:055. Volume i creased which ca #e expected as price hit 1.:055 price le%el. 3ttached 'hum# ails

Ea dle 21 .00:15/: <ow . -ame story co ti ues. 4 terest drops as price falls away from our 1.:055 price le%el. Ea dle 22 .00::0/: Bp. (rice drops across 1.:050" still ot a price le%el to us. 4 terest pic$ed up a d this could #e a pea$ i %olume" we do ,t $ ow yet" so status 2uo" mar$et still holds i terest i 1.:055. Ea dle 2: .00:45/: <ow . (ea$ co firmed i Ea dle 22. ?ew price le%el at 1.:050. (rice dropped #ut there is less i terest tha where price was at pre%ious ca dle. 'his ca dle crosses #oth price le%els. 4f the i terest was at 1.:050" the the pea$ would ha%e #ee here" there would ha%e #ee hi!her %olume. -o" o%erall there is less i terest at this lower price. Ea dle 24 .01:00/: <ow . (rice !oes dow across our ew price le%el at 1.:050 #ut still less mar$et i terest. -o our mar$et i terest still seems to #e at 1.:055. *ar$et i terest has #ee at 1.:055 for a while" so this is starti ! to loo$ li$e a $ey price le%el for somethi !. Ea dle 25 .01:15/: <ow . (rice dow " i terest dow . 'here is o pea$ here so o ew price le%el #elow 1.:050 yet. *ar$et still focused o 1.:050. Ea dle 26 .01::0/: <ow . (rice !oes up a d i terest is less. )oo$s li$e we are starti ! to see the #ottom of this price mo%e. Eould defi itely put a lo ! i here if we !et dow to 1.:040 .to ma$e it worthwhile/. Ea dle 2; .01:45/: <ow . &ell that,s a little lar!er price mo%e dow the expected. 0it our 1.:040 mar$ so we ca !o lo ! to 1.:050. Very little i crease i i terest a d o pea$ still" so o ew price le%els dow here. 'his is some ta$e profit territory" put the lo !s i play.

Ea dle 28 .02:00/: Bp. 'here we !o. Hood solid price mo%e up" assume it is a pea$. -et a price le%el at 1.:040. *ar$et i terest way up" o wo der" we are headed #ac$ to where the mar$et lo%es it at 1.:050. 3ttached 'hum# ails

Ea dle 2> .2:15/: Bp. (rice is up a d i terest slippi ! as we ear 1.:050. 'his slippa!e could #e the result of pulli ! away from 1.:040 price le%el. ?othi ! so far to assume that we wo ,t cross 1.:050" could #ail from lo ! trades if s$ittish. Gis$ ta$ers throw a stop i at 1.0:5 a d stay i lo !. Ea dle :0 .2::0/: Bp. -till ca ,t cross 1.:050. 4 terest would ha%e pea$ed if we crossed 1.:050" so it seems mar$et i terest is fadi ! as price mo%es away from 1.:040 price le%el. 3ttached 'hum# ails

4,ll stop here as 4 do ,t wa t to start to si! al trades. &ell that was :0 ca dles a d that is how 4 read the charts with price/%olume mo%i ! arou d price le%els. 'his example was ,t !reat #ecause our ra !e was fairly small a d price le%els were poppi ! up close to!ether. F%e so" we had %ery clear pip opportu ities to sei7e o . 4f you read throu!h those :0 ca dles" you ca see how 4 am tra slati !/8ustifyi ! the price/%olume mo%es relati%e to the price le%el. Geally" o ly 1 ca dle i the :0 that was tric$y #ut #y stic$i ! to o%erall mar$et i terest 4 8ust stayed the course. 6therwise" there is ,t a whole lot of room to i terpret the price/%olume mo%es a y differe tly. 9ou ca also see as we !et ear the e d" how price le%els ta$e shape a d form arou d price/%olume mo%es...a d or do ,t exist. 9ou ca see as we eared 1.:040 there was o price le%el o the way dow " if i terest i price was to $eep !oi ! dow there would ha%e #ee a i crease i i terest .%olume/" especially if o the way dow we crossed 1.:040. Cy that ot #ei ! there" price had to start !oi ! up. 'here was o other way a d the ca dles 8ust #efore were i dicati ! the mar$et had o i terest dow here arou d 1.:040. -o" a!ai the upward mo%e was loud a d clear. 'hi !s are setti ! up. Hi%e it a shot .o a demo accou t/. 1. )i$e this" with price le%els@ : years. 4t comes from 20 years of refi eme t for me i u dersta di ! how to use it properly. 'his =system= is as old as the tic$er tape. *y refi eme t has come with the use of price le%els" u dersta di ! mar$et =i terest= arou d those price le%els" a d wrappi ! it arou d my head. 2. 4 ma$e 20 pips a day 55 that,s my pedestal a d 4 preach to a yo e who will liste a d

wa ts to ma$e co siste t mo ey i +orex. 4 put %alue i my 20 pips" ot i how ma y pips 4 ca !et. 4 ca ma$e 20 pips a day with *'+ -tochastics" #ut usi ! V()' is =oh my !awd= less stressful a d way more co siste t. -ome days 4 ma$e a lot more tha 20 pips" 8ust #ecause the mar$et pulls me alo !. )i$e last i!ht whe 4 was writi ! a#out :0 ca dles" 4 did ,t a ticipate 4,d lead ri!ht i to a mar$et that was !eari ! up for a ta$e off. 4f the mar$et is !oi ! to ha d me a to of pips 4,m !oi ! to ta$e it. V()' ma$es it easy to see it. 9esterday i to today was pip5a5tasticA :. 9es" 4 could" #ut 4 wo ,t. 3t least ot at this sta!e. 4 ha%e a lot of reaso s for this" o e of which are to pro%e how succesful this is for me. 4,d much rather disect trades or show you how 4 !ot there" so you ca trade succesfully. Dust for fu " may#e later" 4 mi!ht 8ust for lau!hs do it" cu7 4 thi $ it is eat. +or ow" my missio a d time is to show people they ca successfully trade. 'he simple a swer" you 8ust $ ow whe they are rele%a t a d whe they are ot. 'here,s o fixed life spa o price le%els a d o rules li$e the older the price le%el is the more irrele%a t it is. 9ou 8ust ha%e to let the mar$et tell you what price le%els are rele%a t. 'he ice thi ! a#out V()'" is that you ca wipe the chart clea of price le%els a d start a!ai " #ecause the mar$et will always $eep telli ! you where they are. 4 te d to wipe out the close to!ether o es where price is ow a d 8ust $eep the most rele%a t i the mar$et to where 4 am ow. 4,m a 20 pip/day trader so 4 do ,t eed to $ ow a lot of (),s. 9ou could come up with a lot of differe t strate!ies with this. 4,d 8ust say" if you are !etti ! co fused" do ,t #e afraid to wipe the slate clea a d !i%e yourself a fresh start. 4t,s e%er a #ad idea to chec$ your wor$ a yways (rice/Volume as it relates to price le%el. <o ,t !et too hoo$ed o ca dle si7es. : pre%ious ca dles are closed pretty much at same price" a d %olume .i terest/ is !oi ! dow . 'he mar$et has 8ust ot !ot e ou!h steam to push the price up throu!h 1.:060. 0e ce" price will flop. 'he price drop #elow 1.:055 is the mar$et !i%i ! up o that hi!her price #ut there was less %olume whe this price dropped #elow the price le%el" tha whe prior it rose a#o%e. 'hat ca o ly mea that the mar$et has more i terest i tryi ! to push the price up past 1.:055. 'he lower %olume 1 ca dle pre%ious is the mar$et !i%i ! up at tryi ! for 1.:060. Ea dle 4 co firms this #ecause the price stays #elow 1.:055" there is o %olume dow here. Hoi ! lo ! ow at Ea dle 4" is tryi ! to ta$e ad%a ta!e of the mar$et wa ti ! the price

to !o up. 'he mar$et is testi ! 1.:060" so a price hi!her tha 1.:060 seems reaso a#le" #cause if the test succeeds it will cross that le%el. 4 ca ,t emphasi7e e ou!h how price/%olume is tied to price le%els. 4t is ,t ca dle si7e. 3 small ca dle ca !e erate #i!!er %olume crossi ! a price le%el .see ca dle 20/" a d li$ewise a #i! ca dle ca !e erate small %olume whe it is owhere ear a price le%el .see ca dle 12/. 5L Dust remem#er all : are relati%e to each other price/%olume a d price le%els. )et me $ ow if that ma$es se se" #ecause it is a importa t o#ser%atio you #rou!ht up.

'hree firs ca dles wit8 red arows formed price le%el at 1.:250 Ea dles 1" 4" 10 formed price le%el at 1.:2;0 Ea dle 2 5 <ow . (rice ope ed a#o%e a d closed #elow our price le%el" there was less i terest i price #ei ! a#o%e 1. :2;0 after price crossed the 1. :2;0 price le%el Ea dle : M B(. &ith low %olume. 4 terest .%olume/ is dow i a hi!her price. Ea dle 4 M our le%el co firmatio . Ea dle 5 M <ow M price mo%es away from our le%el" %olume decreases Ea dle 6 M B(" ear our le%el" %olume dow " mar$et shows less i terest i #ee ! at our price le%el 1.:2;0 Ea dle ; M <6&?" low %olume .lowest of our ; ca dles/ 5 (rice is !oi ! to try the 1.:260 le%el" %olume is less . o i terest/ so this price le%el will ot hold. 4f there was i terest i a 1. :260 price le%el" %olume would ha%e i creased. Hood time for a lo ! e try a d catch a few pips to 1. :2;0. -mall ra !es" #ut sure price mo%es" why ot ma$e some small pip trades. Ea dle 8 M B( M low %olume M do t $ ow how to descri#e this ca dle .if 4 am i lo ! o pre%ious ca dle" the ow 4Nm i dou#t #ecause price arri%ed ear our 1. :2;0 le%el with low i terest/. Ea dle >" 10 M le%el 1. :2;0 still i play. 3 d ca dle 10 dow with hi!her %olume tha o ca dle > up shows that mar$et li$es to #e u der that le%el 1. :2;0. Ea dle 11 M <ow " low %olume" mar$et shows it does t li$e to #e a#o%e 1. :2;0 M Hood place to short? 4 will stop here" !otta !o to wor$. &aiti ! for come ts a d critics o my a alysis .ca dle #y ca dle please / 3ttached 'hum# ails

Ehart update 3ttached 'hum# ails

Ea dle 8 simply supports ca dle ;. *ar$et does ,t ha%e much i terest with price #ei ! arou d 1.:260 a d would rather it #e headi ! up past 1.:2;0 where the price le%el is. Ea dle 10 .after ca lde 11 is fi ished/" co firms our price le%el #ecause there is a %olume pea$ here. F%e if you i! ore the %olume pea$" ca dles >I10 mar$et is telli ! us price is pretty solid o 1.:2;0. &e $ ow price has to !o somewhere from 1.:2;0 at sometime. 'he mar$et li$es it much more whe price is !oi ! up to a d e%e throu!h 1.:2;0 price le%el. -o that would seem that lo ! is the choice. 0owe%er" ta$e a other loo$ a d rememe#r that the mar$et will wa t price to mo%e. Ea dle 4 is the lar!est upward price reach" crosses our price le%el at 1.:2;0 a d has the hi!hest %olume. 3t ca dle 4" othi ! wro ! with putti ! a lo ! order i " #ut we must #e aware that chasi ! a u $ ow price le%el a#o%e 1.:2;0 is full of ris$. 4f you #elie%e at this mome t price will #rea$ throu!h 1.:2;0 the your order is at or #elow 1.:2;0. 0owe%er" #y the time we !et to ca dle 11" we should #e #aili ! from our lo ! trade. Cy ca dle 11 there is a defi ite shift i mar$et for price to !o dow " a d here is why: Ea dle 10 is the $ey. Ea dle ;"8"> is a !e eral ru up of price towards 1.:2;0 a d %olume does exactly what you would expect..so a!ai a lo ! trade is ot out of the 2uestio ...#ut ris$y #ecause we ha%e o i fo a#o%e 1.:2;0 a d that is a =#et= o a #rea$throu!h. 0owe%er" ca dle 10 will #ri ! you to your se ses. (rice dropped a d %olume $ept

clim#i !. Ea dles 11"12 all this is sayi ! o #rea$out" still stuc$ o 1.:2;0 as a limit. +rom ca dle 6" >" 1:" all clim# #ac$s i price to 1.:2;0....#ut ca you see that each o e is decreasi ! i %olume to the o e pre%ious. Volume wise ca dle 6 is less tha 5@ > is less tha 10" a d 1: is less tha 10"11"12. -o there is o #rea$ out up that will happe . 4,d 8ust #e watchi ! this thi ! for ow. ?FO' E03G'.... 3 little after this chart .i the ext chart/ you should #e a#le to catch the 1.:250 to 1.:2;0 mo%e. 4t,s a simple trade #etwee our price le%els. 'he %olume tal$" that pea$ whe price drops li$e a #om# .ca dle :5/ a d hits 1.:250" what is it co firmi !? 6ur price le%el at 1.:250. (ea$s exist at price le%els. .:6/ &he price clim#s a d %olume rises" co firmatio of the price le%el a d the i terest up a d away from from 1.:250 .!o lo !/. .:;/ &he price drops a d %olume drops" swift $ic$ to your .#utt/ to !o lo !. .:>/ 3 d loo$ where your ca dle crosses o the ext %olume pea$...1.:2;0. +irst 8o# as always is to fi d a price le%el. ?ext %olume pea$ alo ! a d we e d up with a price le%el at 1.>000. ?ot the #est for accuracy" #ut it !i%es us a starti ! poi t" we ca 2uic$ly fi d where the mar$et was at o this chart. 'he price le%el was fou d #y putti ! !ree %ertical li es throu!h 2 %olume pea$s. 3 =clear= %olume pea$ is o e where the %olume is less o #oth sides of the %olume #ar i the ce tre. 4deally we wa t 2 pea$s that will o ly !i%e us 1 choice for a price le%el. (rice le%els always e d i =0= or =5=. 4 this example" the price le%el ca o ly #e 1.>000. 4deally the price le%el li e will pass throu!h #oth price ca dles where our %olume pea$s are" #ut sometimes li$e i this example" we ha%e to ta$e a #est fit approach. 3ttached 'hum# ails

Poom i o the chart. &e ha%e o e =loosy= price le%el set up for a refere ce poi t. 'he de%il is i the details" so

lets exami e some price/%olume mo%eme t. .1/ Ea dle 1 mar$ed o chart. -o" we do ,t $ ow a ythi ! a#out mar$et i terest a#out the price" so let,s start ma$i ! otes o what we do see. (ri%e is dow " %olume is dow from pea$. 'his is a ormal mar$et reactio .%olume dow / after a pea$ a d setti ! a price le%el. 4 terest after all is at the price le%el. ?ote that price mo%ed dow towards the price le%el a d %olume dropped. 55 we ca ,t i terpret a ythi ! more from that. )ot,s of assumptio s a%aila#le" #ut let,s i! ore those. .2/ 'he seco d price ca dle mo%es dow a d the %olume !oes dow . -o price is mo%i ! away from our 1.>000 price le%el a d i terest is less. -o" is price !oi ! up" away from the price le%el ha%e less i terest tha price mo%i ! dow towards price le%el? ?oted. .:/ (rice up a d %olume up hi!her tha .1/ a d .2/" could #e a pea$" we would ,t $ ow yet if this was real time" so we,ll prete d we are assumi ! it is a pea$ as we would if it were real time. -o the %olume rise ma$es se se #ecause we eed to draw a ew price le%el. &e $ ow the price le%el must #e a#o%e .2/" otherwise our %olume pea$ would ha%e #ee at .2/. 3 d the price le%el !oes throu!h .:/. 'hat puts it either at 1.:215 or 1.:220. 3t this sta!e where we o ly see .:/" we 8ust ha%e to pic$ o e a d wait for .4/ to tell us. 3ttached 'hum# ails

'he ca dle a d %olume ide tified o the chart #y arrows are off. 'he actual %olume to match the ca dle is the o e to the left. Eou t from the ri!ht side of the chart .6 i from ri!ht/. -hould ma$e se se ow. 'hat,s why 4 always draw li es #etwee my ca dles a d %olumes....easy mista$e to do. .4/ 'he %olume of .4/ is less tha .:/ so ow we co formed .:/ is a pea$. .4/,s price is mo%i ! up a d %olume dow " which mea s that the i terest is !etti ! wea$er as it should after a price le%el as the price mo%es away from the price le%el. 'his mea s the price le%el must #e #elow .4/ so at 1.:215. (rice le%el esta#lished. 3''F?'46?: <FV4) 4? '0F <F'34)- *6*F?' .5/ a d .6/ simply hold the li e...#ut .5/ !i%es us a war i ! of thi !s to come. 4t drops i

price a d drops i %olume 5 we would expect that if price dropped towards the price le%el" %olume would rise. -o" is i terest starti ! to mo%e away from price le%el? .6/ co firms it. )6?H F?'G9 ?6'4EF .;/ is co firmatio of .5/ a d .6/. (rice is up a d %olume is up. ?ow we ha%e our #est co firmatio that price wa ts to mo%e away from this price le%el. -tic$ a lo ! trade i as close to the close of .;/ or ri!ht at ope of .8/. )o ! o 1.:220 or a#o%e -top o 1.:1>0 .we,ll mo%e up after" o ly for e try/ Fxit tar!et :0 pips .1:1/ for e try/stop 5 1.:250 3ttached 'hum# ails

.8/ a d .>/ are price up" %olume up. 9ou could exit at .>/ ear 1.:250 as that,s a !ood trade or ha ! o . &e ha%e to assume > could #e a %olume pea$" so should treat it accordi !ly that 1.:245 or 1.:250 may #e our ext price le%el. *o%e the stop to 1.:210. .10/ Fxit trade" price up" %olume pea$. ?ew price le%el co firmed o .11/. :0 pips" that,s !ood to me. 9ou could ride this trade to .11/" #ut the for sure you eed to exit whe the ew price le%el is co firmed at .10/ after .11/ closes. 'hat e ds this trade. 3ttached 'hum# ails

'he Ci! (icture V()' &a t to $ ow how to ma$e pips i a ra !i ! mar$et? &a t to $ ow which way to trade for a #rea$ out? &ell here you !o: 'a$e a loo$ at the #i! picture. 'he chart #elow has : price le%els@ #lue .low/" red .middle/" !ree .top/. Fach pea$ %olume has #ee ide tified with o e of : coloured %ertical li es. 'hese %ertical coloured pea$s" correspo d to the price le%el they affect. -o a %olume pea$ where a price ca dle i tersects a #lue price le%el li e will ha%e a #lue %ertical li e. &hite %ertical li es price ca dles cross 2 price le%els" so i! ore those for this example. 3ll price/%olume mo%es are relati%e to each other. 3lways remem#er thisA Volume is ot i depe de t from price mo%eme t 5 always to!ether. -o from this" the rest is easy: 4! ori ! the white %ertical li es....a d mo%i ! from left to ri!ht 2 red %ertical li e %olume pea$s are lower tha the ext 2 !ree %ertical li e %olume pea$s .mar$et i terest lo !/ 'he 2 red lower tha !ree .mar$et i terest lo !/ 'he 2 #lue lower tha red a d !ree .mar$et i terest lo !/ -o ideally" you would #uy lo ! o price ca dles at or #elow our #lue price le%el. Cut at red a d !ree price le%els you ca still #y lo !" as that is where mar$et i terest is. -o" ow we ca ra $ our price le%els: Clue lo !s re2uire lowest stop 5 low ris$" optimum lo ! Ged lo !s Hree lo !s we trade to #rea$ out re2uire hi!hest stop 5 hi!hest ris$" poorest lo ! retur s -o you ca $eep followi ! this patter alo ! the ra !e" where the !ree price le%el has

the hi!hest %olume .i terest/ a d the #lue le%el has the lowest %olume .i terest/. 'his is a lo ! mar$et i terest. Jeep tradi ! lo ! from the #lue a d you 8ust wal$ the %olume up throu!h the #rea$ out at the ri!ht of the chart. Volume" (rice a d (rice )e%els...V()'. 4t,s all relati%e. 3ttached 'hum# ails

0ere,s a #i! picture V()' with a mar$et swi !. 6ur hi!hest price le%el !ree has the lowest %olume" so mar$et direct is short. 'his flows throu!h red" #lue a d purple" with purple price le%el ha%i ! the hi!hest %olume 'he mar$et swi !s" where the ext purple pea$ %olume is the lowest" so time to !o lo !. &he we hit the !ree price le%el" %olume is hi!hest....lo !. 4f we ca #uy lower tha !ree price le%el" say at the red price le%el lo !" so much the #etter. 4deally we are #uyi ! lo ! at the lowest price le%el" #ut if we are i a lo ! mar$et a d price is risi ! a d mar$et i terest is still lo !" the $eep #uyi ! lo ! at each price le%el. 9ou may miss the optimum lo ! price le%el #uy" #ut do ,t miss the rest. -tops are always 1.mi / or 2 .max/ price le%els away....tar!et pips at least 1:1 to stop. 'his is at e try" you ca exit at a y time with a pip !ai . 3 pip !ai is always a wi . 9ou should always mo%e stops to !et pip !ai s...e%e if you miss the =#i! o e=. <o ,t let e!o !uide your decisio s. 'a$e your pips. Ham#le with pips ear ed" ot your mo ey. 3ttached 'hum# ails

4,m %ery happy with ;520 pip trades. 4 tar!et 20 pips a day a d it ets me a#out ;500 pips a year. 'hat,s my =salary= portio of tradi ! which 4 trade with hu!e discipli e. ?ow the other side of the dow time i #etwee " 4 scalp. 4 will discuss this with V()' shortly as scalpi ! is 8ust plai fu a d if you ca #e co siste t with it a d V()'" will ma$e you cra7y pips...a d e%ery i!ht scalpi ! you will fall i to a ca dle that will 8ust shoot off a d !ra# you 20":0"50"etc pips. +or example" 4 scalped for a#out : hours o FBG/B-< *15 !ra##i ! 25: pips" simply #y waiti ! for a ca dle to rise a#o%e or #elow a price le%el. 4t was a %ery ti!ht ra !e" a d 25: pips is all that was #ei ! offered. 4 made 15 trades" some were dou#les or triples o the same ca dle" a d o e ca dle slid dow 25 pips with 2 shorts o it. -o i that #rief time" 4 made close to 60 pips a d o ly lost o e trade with 50.2 pips. &hat" 4,m tryi ! to say i a rou d a#out ma er" is 4 far prefer to !ra# small !lo#s of positi%e pips #ecause they e d up #ei ! lar!e pip totals...a d you are always wi i !. 4 trade a y time...scalpi ! also let,s you do that. 4 prefer to trade whe 4 wa t to trade rather tha stayi ! up til 4 am. 4 fi d tradi ! !et,s to #e a real !ri d if you are forced to do the i!ht shift....especially if you $eep your day 8o#A -afer to side step the first ope i ! day for a few hours after the wee$e d or holiday" 8ust to let the mar$et !et !oi !. Elea i ! V()' 55 su#8ecti%e. 4 will typically wipe my chart clea whe 4 start a trade rou d . 4 usually trade for 255 hours/ a d the ta$e a lo ! #rea$ i #etwee . 'here are times 4,ll tur o my *'4 a d the e tire mar$et li es up with my price le%els from

#efore...so these 4 lea%e o . 4f a price le%el is i my way a d/or does ,t ma$e se se to my curre t trade rou d...4 wipe it. 'he mar$et will put #ac$ our price le%els" so ha%i ! more tha say :55 acti%e i a trade rou d is a#out all you eed. &he you eed price le%els o a ru up or dow ...8ust add them. VPLT Live Trade #=am/le FBG/B-< *15 .1/ 3fter a %olume pea$ there is always a drop i %olume .i terest/. 0ere price !oes up a d away from our price le%el of 1.:2>50. 4 terest is sli!htly less" #ut at this poi t there is o way to $ ow where the mar$et is headed. &hat we eed to wait for is for the mar$et to tell us how it will mo%e arou d our curre t price le%el" or where the ext price le%el is. 3ttached 'hum# ails

.2/ (rice rose a d i terest rose. 'his mea s that the mar$et has more i terest up i the 1.::10 le%el. 4t is possi#le that this is a ew %olume pea$ a d that could ma$e 1.::10 a ew price le%el. &e will ha%e to wait for our .:/ ca dle to close a d the we should #e a#le to ma$e some decisio s if we !et a ew price le%el. 3ttached 'hum# ails

.:/ &e ha%e esta#lished a %olume pea$ at .2/. 6ur ew price le%el is 1.::10. -o mar$et i terest seems to #e far less at this ew price le%el. 'a$e a step #ac$ a d loo$ at .1/ to .:/ to!ether...price up" i terest dow . 'he o%erall mar$et less i terested i 1.::10. 'a$e a short positio as hi!h a#o%e 1.::10 as we ca " i the ope .4/ ca dle is fi e. ?o matter what" ta$e a short at 1.::10. 9ou ca ha%e a lot of fu scalpi ! #y ta$i ! short positio s whe the price le%el rises a#o%e 1.::10 a d exiti ! #elow 1.::10....a d ma$e some extra pips as price mo%es throu!h the ope ca dle. Jeep to the o%erall short mar$et" so o lo ! trades. 3ttached 'hum# ails

.4/ Casically o cha !e i mar$et i terest or price. )oo$i ! at all 4 ca dles a d %olume to!ether" still a short mar$et. -o e%erythi ! holds true from .:/. 4deally" we will see some rise i price a d less mar$et i terest. 'his will allow us to add #etter short positio s. 0owe%er" 1 short positio is fi e if that is all you wa t to trade" as lo ! as it is at 1.::10 or hi!her. 3ttached 'hum# ails

.5/ (rice up" i terest lower. 4t is 8ust pips i the poc$et. 9ou should ha%e at least 1 short e try at 1.::10 #y ow. &he price drops" we wa t %olume up. &he price rises" we

wa t %olume dow . Fxit....10 pips is !ra d. &atch the price %olume...#eware of a possi#le %olume pea$" that may e d our dow ward mo%e. 3ttached 'hum# ails

.6/ 3 d there we ha%e it. Fasy 10 pips. 4 had 2 scalps ope a d a third with a 1.::00 short tar!et...i all it was 28 pips after spreads...a d that is my day of tradi ! do e .20 pips/. *y scalps we t a lot #etter tha expected. 3ttached 'hum# ails

4 hope ru i ! throu!h a li%e trade sessio li$e that was a lot easier to follow. 4,ll do ple ty more i days to come. 9ou ca see how #y focusi ! o #oth i di%idual price/%olume mo%es a d the collecti%e mo%e up/%olume dow " this was a easy short mar$et mo%e to fall i to..a d literally that is all we do" fi d the price le%els a d follow price/%olume. VPLT Live Trade #=am/le FBG/B-< *15 .1/ )oo$ #ac$ 2 ca dles from .1/. <ow ward price" i creasi ! %olume. <o ,t #e fooled that .1/ is a tur arou d. 4f ext ca dle price is up a d %olume dow " the we ha%e a ew %olume pea$ a d price le%el....#ut more importa t we will still #e !oi ! dow . 3ttached 'hum# ails

2/ ?ew price le%el with %olume pea$. 9ou ca see 4 shifted up the old price le%el at 1.:2>5 to the ew le%el at 1.::00. ?o eed for clutter. &e are still i a short positio . Ehoices are to e ter short ow a d/or wait for price to !et as close to 1.::10 as you ca . -tay focused o .1/ a d .2/....price up" %olume dow . -calp to 1.::00 or ride the price/%olume i your short trade. ?ew !ame if price reaches 1.::10. 3ttached 'hum# ails

.:/ 'he mar$ets are #ei ! ice a d easy to i!ht. (rice dow " %olume up...shortA Cetter to #e i a#o%e 1.::00. 4f .:/ #ecomes a %olume pea$" it will simply co firm our 1.::00 price le%el. 3ttached 'hum# ails

.4/ ?o surprises. *ar$et did exactly what it told us it would do. 4 exited at 1.:2>0 with 2 short trades. 4 li$e to play it a little safe. 3ttached 'hum# ails

Dust pea$ed at the chart....we could ha%e $ept !oi ! short...here,s a pic. 0ope you e 8oyed these 2 trade sessio s. ?ow !o practice some V()'. 3ttached 'hum# ails

'here are a lot of mo%es i price/%olume that #ecome reco! i7ea#le....4 do ,t wa t to say patter s #ecause the people #li dly trade patter s a d that ca #e da !erous. 0owe%er" these reco! i7ea#le mo%es will !i%e you a starti ! poi t" or ma$e you dou#le chec$ your positio . 'he most commo of these reco! i7ea#le mo%es is the %olume drop #efore a d after a %olume pea$...i li%e tradi ! it ca !i%e you a defi ite ad%a ta!e to either #ei ! i /out of a trade. 4 $ ow that is li$e sayi ! =the s$y is #lue=" #ut whe i a li%e trade" you,ll #e ama7ed how helpful that $ owled!e is. 4,m ot usi ! a ythi ! other tha *15. 9ou could use multiple time frames" #ut at this sta!e 4 thi $ it would add a layer of complexity we really do ,t eed. .4,m a *'+ ad%ocate" 8ust so you $ ow/. 'he li%e trade examples 4 pu#lished" 4 fou d : %olume spi$es a d a price le%el or two. ?ot e%e 6 hours #ac$. 4 recomme ded 12524" to !et you practici !" #ut whe you !et !ood at esta#lishi ! price le%els" you 8ust eed a starti ! poi t esta#lished a d !o. )oo$ at my last two li%e trades a d 4,m really starti ! those trades from the last %olume pea$ .ca dle 0/. 4 ta$e a loo$ #ac$ a#out 455 ca dles for a #i!!er picture" #ut 4,m starti ! to plot the mar$et from .1/. 0ow far you !o #ac$ is really a#out !etti ! a feel for the mar$et....4,d certai ly recomme d whe starti ! out you !o #ac$ the 12524 hours for !ood practice....especially if mo ey is o the li e.....a little extra wor$ reaps the rewards. V()' 5 +aili ! (rice Elim# Bsi ! the chart #elow the !ree tre d li es o price show risi ! price. 'he !ree tre d li es o %olume show risi ! %olume. 'he areas 4 mar$ed ='ail= is where the %olume drops off. 'his is a sure si! that clim#i ! price is faili !. 'hat is o e way to loo$ at this chart. 6 the price" the tre d li es follow a price up. 6 the %olume" the tre d li es seem to support a clim#i ! price a d %olume seems to !et wea$er whe price drops. 3ttached 'hum# ails

%ame chart as be"ore only this time I put in - red price and volume trend lines. @ocumented re"erence The "irst priceAvolume seems to support an upward price move, since volume is getting less as price goes down. You could de"initely get tric(ed here into going into a long trade, as low as you could below *.--6+, you would recover later as you would see the mar(et turn to short "rom both the volume "alling o"" the priceAvolume climb that "ollows (shown in previous chart , or with what happens ne9t. The second price trend line is relatively "lat, you could give it a little up trend, but certainly no down trend. Meanwhile volume slides down. This is the mar(et not interested in this higher price...a small ceiling around the *.--5. price. ;ere is a de"inite short entry at *.--5. or anywhere above our price level o" *.--6+. The -rd priceAvolume trend lines seal the short deal. #ven i" you ignore the price drop and "ocus solely on the last - candles climbing, volume is not there to support the price climb. I" the mar(et had any interest in going up, the volume would have increased with price, at best volume stays "lat. %o, ta(ing all - groups together> The "irst priceAvolume group is the end o" the previous long climb. %till some mar(et momentum trying to move the price higher. The 4nd priceAvolume group sets the ceiling o" upward price movement and gives all in the mar(et notice...!that0s it!. The -rd priceAvolume group is the gathering o" short orders at *.--6+ and then the price will drop.

Now don0t go e9pecting the mar(et is going to drop +.1*.. pips every time the mar(et wants the price to drop. Not on this chart but soon a"ter, the price drops *.1*+ pips and then the priceAvolume turns again and goes into a steady climb. You grab your pips and trade with the mar(et....not what you "orecast the mar(et will do...what the mar(et is doing. =ttached Thumbnails

V&7T 1 = Tough /ne ;ere0s a tough one to catch, but the mar(et does tell you....so long as you don0t create bias "or one direction and listen to the mar(et. It even "ooled me while I was writing this2 There loo(s to be a lot o" support "or a price climb on this chart. $ising price, rising volumes. =ttached Thumbnails

There is no doubt support "or a climbing price to *.--B.. 'andle (* is o" interest, i" only because volume is so low at *.--B.. 'ertainly the "all in price ne9t to it should be e9pected. 'andle (* is at the end o" a typical !tail! that I spo(e wrote about earlier where price is climbing and volume "alls o"" at the end o" the price climb. 'andle (4 crosses *.--B. with a volume pea(. This price level seems strong as there is growing volume to this pea(, but what "ollows the pea( is a drop in price. ;ere you might enter a long trade and li(ely get stopped out by candle (- i" you didn0t bail at the previous candle be"ore (- . 'andle (4 to (- is a mar(et supporting the *.-55. price level. =t the very least you should be scratching your head at the volume spi(e o" candle (- being so high when it doesn0t touch *.--B.. Instead it, "ell climbed through *.--5+ and "ell through *.--5.. Co bac( to candles (* and (4 and this seems to ma(e a little more sense. %o candle (4 loo(s li(e a brea(through up. =nd it is, this priceAvolume is supporting a mar(et to go "rom *.--5. to *.--B.. This is where you need to "ocus on what the mar(et interest has been on *.--B....not very strong. 7i(e candle (* and li(e candle (4 ....candle (4 should be "ollowed with a price drop....and it is (not on chart . This is one that will li(ely "ool you because so much bias will be seen on the price climb. ;owever, i" you thin( about this long enough, you can see the top price wea(ness. 3ttached 'hum# ails

Dust wa t to ma$e a few comme ts studyi ! this system. 1. 4f the #ar mo%es a d %olume low" it is a si! of traders ta$i ! profits. -tro ! si! of re%ersi ! tre d. 6 e possi#le expla atio of this phe ome o is that traders close trades a d do ,t ope ew co tract. 2. Car small a d %olume hi!h mea s that mar$et is !oi ! to mo%e. 4t is li$e race car o the race trac$ !assi ! up for the si! al to start a d thrust. :. -pud has me tio ed that V()' is relati%e. Cy that he pro#a#ly mea s the %olume a d price are relati%e a d you should also read the %olume a d price i a #loc$ of few #ars. 9ou ha%e to refer to other surrou di ! #ars a d see what the mar$eti ! is tryi ! to do. 4. +or 105:0 pips .depe di ! o mar$et sessio /" it will ta$e you 25: hours of tradi ! i a%era!e. +rom my statistical studies" if you aim for 50 pips or more" you will eed to trade 2 times" o e e try for 20 pips a d the other o e e try for :0 pips. 6r" : e tries of 15" 15" 20. 4t all depe ds o the mar$et sessio s you are tradi ! i . 5. &he the mar$et is i tre di ! mood" it will ta$e 152 hours to settle. 'he you ca read the chart a d do your a alysis to determi e the ew (). 6. Volume is the mar$et,s 4 terest" it is also the mar$et,s 4 te tio . )ear to read it a d you ca !et i to the mi d of the mar$et. ?e%er !oes a!ai st its 4 terest a d 4 te tio or it will draw mo ey from your accou t. 0ope this summary helps some o e a d loo$ at this V()' from a other a chor.

4,%e edited the first post" to hopefully pro%ide a clearer focus of what Volume (rice )e%el 'radi ! is a d mea s. 4 fear that some people readi ! this forum may miss the importa ce of the =price le%el= i the title" a d 8ust as true 4 may ha%e ot clearly i cluded i my expla atio s the importa ce of price le%els a d their relatio with %olumes. 0ow %olumes a d price react to a price le%el is the $ey to succesful tradi !. Volume .mar$et i terest/ will #e hi!hest at a specific price le%el a d te d to ra !e arou d this price le%el sustai i ! hi!h %olumes. &ea$er price le%els" will ha%e less %olume .mar$et i terest/ a d price will te d to #e more %olatile" #ou ci ! all o%er a d mo%e throu!h these wea$er price le%els. 'he simple way to ma$e pips is sei7e the opportu ity of tradi ! to a d from the stro !er price le%els. 3 price le%el itself is ot exact. 4t is ar#itrary" a ra !e. 'hou!h there is si! ifica tly more i terest arou d the =0= a d =5= prices .1.::00" 1.::05" 1.::10" etc/" so it is prude t to focus our price le%els o these prices. 'he seco d tas$ is to dtermi e where the price le%els are a d the which price le%el teh price is attracted to the most #y loo$i ! at price/%olume i teractio . *y future expla atio s a d examples will focus more o explai i ! this i teractio " as 4 #elie%e this is where some co fusio lays. 'here are also some %ery specific price/mo%eme ts to price le%els that are extremely co siste t .e%e patter li$e/" that may help traders who prefer a more systematic approach to tradi !. 'here is a systematic approach you ca ta$e to esta#lishi ! price le%els. 'he ice thi ! a#out doi ! it this way" is that you almost always fi d the =perfect= price le%el for a trade e try. Garely is the ta$edow !reater tha 5 pips a d will rarely !o #eyo d 10515 pips" if you ha%e the price directio ri!ht from the price le%el. &e $ ow that at e%ery %olume pea$" the %olume after the pea$ is always dow 5 this is a !i%e truth a d must. 'his price ca dle after the %olume pea$ actually carries a lot of mea i ! to (rice )e%el 55 4 call it the =<etermi ator= price ca dle a d you will see why if you try it. 0ere,s how to esta#lish a price le%el #ased o the %olume pea$ price ca dle a d the price ca dle .=<etermi ator=/ that follows: 1. +i d the %olume pea$ a d correspo di ! price ca dle 2. 'he ext price ca dle =<etermi ator= draw your price le%el as close to the ope of this ca dle as possi#le =e di ! i =5= or =0= 2a. 3 dow <etermi ator ca dle,s price le%el is from ope " dow ward . e%er up/. 2#. 3 up <etermi ator ca dle,s price le%el is from ope " upward . e%er dow /. 2c. 4deally .or >5Q or !reater/" the price le%el will i tersect throu!h the <etermi ator ca dle

:. 6ptio 5 whe the (rice )e%el is so close to the ope " #ut #rea$s the R2 rule" you ca selct this (rice )e%el@ aware that it may re2uire a lar!er stop or may ma$e you miss a trade e try 5 whe 4 say close..4 mea withi 152 pips. 'radi ! &ith 'his (rice )e%el 'rade e try is o ly from this esta#lished (rice )e%el. -ometimes" price wo ,t hit your price le%el" a d as lo ! as the trade is stayi ! i the dirctio you chose" you ca e ter further off this price le%el o rare occura ces. -o" let,s say you esta#lish a (rice )e%el i the <etermi ator ca dle at 1.::10 #ut price $eeps ra !i ! arou d 1.::05" the it is o$ to 8ump o the e try at this lower price....$eep i mi d !reater stops re2uired .K5510/ a d less pips will #e made. 4 fi d it is 8ust #etter to miss the trade a d wait for a ew (rice )e%el. a whole lot safer a d more successful. 'ypically these trades easily et 10515 pips o a re!ular #asis with a 15 pip stop. 4f you cycle them to!ether you ca see co ti ui ! tre d support ru s a d ma$e more pips. 4 usually do ,t chase #eyo d 20525 pips without %ery !ood reaso . Eo ti ually !ra# 5510 pips is a !reat strate!y if you ha%e o idea of price directio . 4f you thi $ you pic$ed the wro ! trade directio #ut are i positi%e pips...ta$e the pips....do ,t sit there a d wait. <efi itely safe to !et out if you se se a ew price le%el formi !. Hi%e it a try" 4 thi $ you will #e surprised how well it wor$s i esta#lishi ! price le%el. 6#%iously" we ca use V()' to #etter esta#lish trade directio ...a d more o this with charts to follow. Visuali7i ! V()' ?ow that 4 $ ow there is a *'4 Volume &ei!hted 3%era!e (rici ! .V&3(/ i dicator" we ca !et a !reat %isuali7atio of V()' at wor$. 'he chart #elow shows the V&3( from the 2 hi!hest %olume pea$s a d a later %olume pea$. 4,m usi ! the two hi!hest %olume pea$s for ease of %isuali7atio " other %olume pea$s are still %alid a d would show the same thi !. 'he (rice )e%els are esta#lished usi ! the systematic price le%el approach where the ca dle after the %olume pea$ ca dle .=<etermi ator ca dle=/ is used to determi e the price le%el as the price that e ds i =0= or =5= closest to the <etermi ator ca dle. -o we ha%e : price le%els o this chart mar$ed with red dashed li es. (rice mo%es to price le%els. (rice le%els are a ma! et" price is attracted to the stro !est ma! et. Volume is the stre !th of the ma! et" low %olume is a wea$ ma! et" stro ! %olume is a stro ! ma! et. 4f there is %ery low %olume tha price le%els ha%e o power a d price will =float= waiti ! for %olume to rise .price le%el ma! et to tur o /. (rice will mo%e to the closest ma! et with %olume.

'he writi ! i the chart should allow you to see how all this i teracts. 3ttached 'hum# ails

'he i teractio is this: Volume mo%es hi!her or lower. (rice mo%es hi!her or lower. Volume is lower the futher price is away from a =price le%el= u til price is attracted to a ew =price le%el=" the %olume will i crease a d price mo%es towards this ew =price le%el= )oo$ at the chart 4 posted i (ost R::4: +rom 8:00 to 11::0 %olume decli es" so %olume mo%es lower 3s %olume mo%es lower" price mo%es away from 1.::00 .our price le%el o the chart/ +rom 11::0 to 12:45" %olume mo%es hi!her.....so price is attracted to 1.::00? .?6/" a hi!her price le%el? .9es/ -o you trade lo !" loo$i ! for a ew %olume pea$" which will form a ew price le%el" that will #e hi!her tha the curre t price. 4f the %olume !oes dow a d price !oes dow ? <o you #ail or do you #uy more lo !? .*ore )o !/ 4f the %olume !oes up a d price mo%es dow ? ... ow start loo$i ! for the ew lower price le%el" if you ca fi d it" ow start loo$i ! at o%erall %olume...this will determi e if you stop" or you will hit a lower a d wea$er price le%el...i.e. will price ow #ou ce up or ot? 4f you ca fi d a price le%el dow here withi 10520 pips of your trade e try" the

you ha%e room to play. 4f you ca ,t fi d a price le%el dow here" or it is way dow ... the you loo$ to #ail at the #est opportu e time...do ,t !o #eyo d 20 pips loss. 'ips: Volume does ot determi e directio of mar$et price alo e (rice le%els a d %olume stre !th is where price will mo%e too F%e thou!h price le%els cha !e a d price mo%es" loo$ for where price is attracted too .ie. what is %olume doi !/ 5 do ,t loo$ at e%ery price mo%e as =this is it" mar$et is !oi ! to !o way dow =....8ust loo$ at each small mo%e as it happe s a d e%aluate...lots of small mo%es = #i! mo%e. 'he thi ! a#out V()' is that it tells you what is !oi ! to happe ext... ot 2 hours from ow..... ext. 4f you !et ahead of yourself a d start forecasti ! a d !uessi !" the you are o lo !er V()' tradi !....you are forecasti ! a d !uessi !. V()' is = ow= tradi !. ?ot historical" ot forecasti !. V()' will" if you are payi ! atte tio " a d read it ri!ht" tell you exactly what the mar$et is !oi ! to do 55 to the ext price le%el. Volume (rice &here is price? &hat price le%el is it ear? &hat is %olume doi ! whe price is ear/at this price le%el? Ho #ac$ to the chart at (ost R::4. Dust loo$ at the =!e eral= price mo%es #etwee price le%els a d what the %olume is doi !. (rice #rea$s away from o e price le%el a d !oes to the ext...what does %olume do? .4,%e porposely spaced out the price le%els i the chart for %isual clarity" price le%els do exist i #etwee / Volume is relati%e. -o you ca actually trade these #i! price le%el !aps as they are o the chart a d focus o ly o the hi!hest %olume pea$s. Cut the de%il will always remai i the detail i #etwee " to $ ow here price is headed. 10520 pip swi !s are fi e. 9ou ha%e to !i%e your trade some room to mo%e...price ca steer li$e a #i! #oat" the tur is made #ut the #oat wo ,t ma$e a cha !e i directio ri!ht away. 0ere is where you !lue your face to %olumes. 4,ll !et hit with 10520 pip swi !s a d ca usually reco%er from a =#ad= trade with less tha 10 pip loss as price swi !s i a ca dle. 4,ll stop out at 20 pips a#out 1540/50 rades. 4,ll stop out a#out 10Q of the time u der 10 pips. 4,ll o ly see swi !s !reater tha 55; pips ...may#e 10515Q of the time. 're d trades 5 mo%e your stop a d treat e%ery ew price le%el as a trade...#ut $eep your trade !oi ! or add more trades positio s. &hy play retraceme ts. 're ds retrace" so either ta$e ad%a ta!e a d trade the retrace" or !et out a d wait for the tre d to co ti ue. 6hhh" so much more profita#le. (a!e24