In this video, I’m going to show you a really interesting volume indicator that does a phenomenal job of identifying the starting point of huge trends in the markets.
No matter what symbol you focus on, whether you trade stocks or Forex or futures, I’m going to show you how to integrate volumes into your trading strategy.
You can use volume to identify the starting point as you can see right here of huge giant trends in the markets while also keeping yourself in the entire length of these type of trades.
All right, let’s check out some indicators.
How To Master Volume Using Technical Trading Indicators
What’s happening, traders?
It’s Mark here at Dyno Trading. Let’s get right into this video. I promise you, you are going to learn something incredibly fascinating around trading technical analysis and what I’m going to show in this video is how to master volume indicators in your technical trading strategy.
I can promise you that by the time you’re done watching this video, you are going to be just as convinced as I am that volume is the holy grail of indicators.
To my knowledge, a volume indicator is the only technique that does a really good job of predicting the future trend. It’s very close to a crystal ball in the market.
If you can teach yourself a volume indicator strategy, then you’ve already beaten 90% of those retail traders out there.
So let me educate you on my three simple steps to master volume analysis in as little as one day.
What you see here on the screen right now is your everyday candle stick nonsense kind of cluttered confusing chart.
Candlestick indicators just suck!
This type of chart is why most traders fail because it’s horribly useless at filtering out the volumes.
Step 1: Redisplay Price and Volume Indicators On Your Charts
So step one in this process is re-displaying the chart so that with one click of your mouse, you turn this chart right here into this chart right over here.
Price is quite frankly clean and organized and the ebbs and flows of the market are very easy to identify.
But we’re still not done with this chart.
To put the finishing touches on a volume indicator chart, all you have to do is go to your list and find this build right here called the volume accelerator.
So the volume indicator is an add-on for the chart and once you locate it in your list, all you have to do is hit okay. It’s that easy to add indicators!
And kaboom, just like that, the volume analytical tools have been layered onto the chart.
So first piece of business, I think it’s obvious that this is a night and day difference.
Most of those newbies and beginners, and generally people that don’t know what they’re doing are fussing around with the old candlesticks.
And by that same token, they wonder why they never make any money trading. They’re simply using indicators that don’t work.
Why Professional Traders Use Volume Indicators
Professional traders are using professional tools and this volume indicator is just brilliant, man.
It’s just absolutely brilliant.
Let me show you what a signal looks like as part of a volume based trading strategy.
Now, before I start, I’m going to quickly show you where the volume is extracted.
If I draw your attention to the right side of this chart here, can you see this A and B right here?
These two columns here reflect the bid and the ask segregated by volume which is actually the second column right here where you see my mouse circling.
And you can see that the market makers and traders and general participants in the markets are using their size, AKA volume to push around the market and that is what causes moves, folks.
End of discussion.
End of story.
If you have ever been wondering what is it or why is it that significant, huge, gigantic trends in the market take place seemingly out of nowhere, well guess what?
It’s not seemingly out of nowhere.
It’s the volume.
It’s the big guys.
It’s the institutions.
It’s the algos that are coming in.
And if they all decide that they want to buy it, all right, this is what you see when everybody rushes into the market and they want to buy it.
And don’t worry, I’m also going to show you a sell-off type of example where the volume turns red and the volume footprint clearly identify as a monster selloff.
But for the time being, let’s just quickly zoom in here and let me show you how to identify and potentially analyze these two setups.
So this volume indicator’s pretty simple.
Buy and Sell Volume Indicators
Whenever there’s more volume coming in that hits the ask, the volume indicator turns green.
And whenever there’s more volume that’s coming in, that’s hitting the bid, the volume indicator turns red.
That is it folks.
So to start, I’m going to show you what to do when the volume turns green. As you can see here right now on the screen, we have two instances where the volume turns green.
We’re going to take a look at both of them, and I’m going to show you why this one over here is actually a false signal.
But we’re going to start on this signal right over here where the volume turned green.
So what this indicator is going to do is it’s going to calculate the exact bar that the volume now shifts from bearish into bullish.
This is the exact bar that tells you that the buyers are now in control.
And so the minute this happens, on this bar right here, you need to be mindful that the market’s giving you a clue that higher prices are right around the corner.
And boy was that true.
This is something you will never, ever, ever be able to identify on candlestick charts.
It’s just not possible.
So make no mistake, volume is again, like I said, in my opinion, I’m convinced that it’s the holy grail and it does a phenomenal job of letting you know when a current potential giant trend is just around the corner.
How to Analyze False Volume Signals
So before I forget, let’s also analyze the other time that the volume turned green.
Let’s really zoom in here.
Now, I want you to stare at these two setups here, and I want you to tell me why this volume shift to the upside, I want you to tell me why you think this is a false signal.
I’ll let you stare at this for a couple seconds.
Go ahead and give me your best guess why it should be considered a false signal.
I hope you’re able to manage that. Well, the signal, AKA the up arrow, so this bar right here where the volume identified a shift, can you see how this actually came on a red bar?
You understand what I’m saying?
Whereas this volume shift to the upside, again, these were both bullish signals.
This turned green over here and this turned green over here. But can you see how this one over here, when it turned green, the color of the bar also matched up to the color of the volume?
Whereas over here, the color of the bar, red did not match up to the color of the volume, green.
You understand what I’m saying?
So that’s what makes this first signal here a false signal and we want to avoid this signal because there’s no trade.
Whereas this one over here, this was 100% most certainly a valid low-risk setup.
I hope I was able to educate you a little bit there on how to, not only take the best trading signals, but also how to stay out of false signals, thereby really improving your win rate.
Using A Volume Indicator to Trade a Sell Off
Now let’s go ahead and take a look at a setup where the volume turns red.
Where the market gives us a very nice footprint indicator that a selloff is around the corner.
And to do that, I’m going to look at a different symbol, which is the inverse of this one.
Just so you know, this chart happens to be a symbol called TZA, which is just an incredibly amazing symbol to trade.
Forget about Apple, forget about Facebook and Tesla, this is the one stock that I am absolutely in love with.
This is the Russell 2003X bullish stock.
So what I’m also going to do now is I’m going to look at the inverse of this, which is called a TNA, and that looks like this.
Again, it does not matter.
I happened to be looking at stocks, but here’s volume on the S&P 500 E-mini futures.
Look at how volume just keeps you in the length of this monster trend.
And here’s Forex, GBP New Zealand.
Look at this, look at this just rip as the volume shifts from red into green, literally right on this bar right here for a shocking 200 pips.
So, there’s nobody in the world that’s ever going to tell me that volume does not work.
Conclusion: A Volume Indicator is the Most Powerful Indicator
A volume indicator is, frankly speaking, the most powerful indicator on the planet.
It’s so simple, so easy to use and look at how the volume colors do a great job of keeping you in the entire length of the move.
If the starting point of the trend is here, if this is when you take a stab at going long, you keep yourself in the length of this entire move until the color changes over here.
So, folks, that is the raw power of a volume indicator.
I’ve searched high and low all over the world.
I have not been able to find anything more accurate than this super cool volume indicator tool and listen, for all you active day traders out there, whether you trade stocks or Forex or futures, if you’d like a one-on-one demo on how this volume indicator can potentially transform your trading, then feel free to get in touch, happy to hook you up.
Call or text or click the link below and we’ll get you taken care of.
Thanks for watching this video on volume indicator. I hope it will truly transform your trading strategies going forward. Do me a personal favor and like the video, share it with your friends, families, and colleagues. And, I’ll see you on the next trade.