1. How Everyone Can Make Money with Market Volumes
2. Disproportionality Between Supply and Demand: How to Turn an Enemy into an Ally
3. How to Make Money with Volumes
4. Strategy for Making Profits with Volumes
5. EA to the Rescue, or How to Simplify Your Trading
The market is a raging sea of profit. And just like fishing on any sea, you need to know where to cast the nets so that you can actually catch something.
Aside from that, you should have a "map" of undercurrents which will help you to cast the net (i.e. place profitable orders) at the right place.
Without these skills and knowledge, earning a solid profit won’t be an easy task. So, the traders who wish to catch the big fish in the market, and not just settle for tiny ones use the market volume indicator.
The market is ever-changing. It’s self-evident. Sometimes the forecasts you make which would have otherwise worked out fail. The strategy may start generating false signals and that’s a recipe for losses.
What causes this? To understand the reason behind it, we should take a look at the structure of the financial market. It is known that price movements happen because there is a disproportionality between supply and demand. When buyers prevail, the price goes up according to the law of supply and demand. In that scenario, there is an uptrend in the chart, and you can open long positions.
But sooner or later, the bulls grow weaker, and sellers come into the picture. As soon as the number of those willing to sell (which is reflected through an increase in the volume of short positions) goes up, the trend changes and the price starts dropping.
It is clear that the price is driven by big capital aka market players who can create a critical trading volume for long and short positions.
NOTE:
Using trading strategies based on technical analysis (e.g. level trading) or indicators, as well as by performing fundamental market analysis, traders can with a certain degree of likelihood make a forecast about the further direction of the big player’s movement. With that being said, this picture won’t be complete. More often than not, traders face situations when identifying the price behavior at a certain technical level using just technical, indicator and fundamental analysis is almost impossible.
With that being said, this picture won’t be complete. More often than not, traders face situations when identifying the price behavior at a certain technical level using just technical, indicator and fundamental analysis is almost impossible.
For instance, you see that the price of a certain asset (e.g., a currency pair) approached the horizontal resistance level, broke it out from the bottom upwards and consolidated above it. After that, it has been consolidating in a narrow sideways range above this horizontal line for three days.
It would be logical to assume that a big market player could accumulate a long position in order to further push the price upwards. That said, a long-term consolidation may also mean that the bulls are growing weaker, while the bears are building up the volume in order to push the price downwards.
So, what can you do under such circumstances? Take a chance and go long, and get kicked out by stop loss if the forecast fails? Or enter a short position, where the odds of incurring a loss are very high?
You can obviously skip this entry but being a reasonable trader that you are, you know that when the trading system provides you with a signal, you must accept it. In moments like this, it seems like there is something missing in your strategy.
Would you like to peep behind the curtains of the market, find out the balance of power in it and what you can do as a private trader? This is where the Volume indicator developed by Gerchik & Co comes to the rescue.
By being aware of the way volumes are distributed in the market and coupling this information with your trading strategy, you can boost your chances of making winning trades and avoiding losing ones.
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You can find exchange volumes in special bulletins and reports. That’s a lot of information to analyze in order to find the prices at which the majority of long and short positions are opened, and then mark these levels in the chart manually. It is a very time- and energy-consuming process and you may simply not have enough time left to enter the trade.
Luckily, however, Gerchik & Co has come up with a way to automate this process by creating the MT4/MT5 horizontal volume indicator.
In other words, the traders will get their hands on exhaustive information to make money with in the market.
An algorithm that downloads information on the distribution of exchange volumes from exchanges automatically and delay-free lies at the heart of this technology. All of this is done in real-time mode.
The obtained data are then distributed as a horizontal bar graph displayed in the chart of the trading instruments in MetaTrader 4 and MetaTrader 5 platforms. This allows to track down the price at which the biggest volume of long and short positions have been opened. This handy tool helps traders to see the market from the inside.
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So, whether you have a substantial trading experience or not, knowing how market volumes are distributed will give you additional information for making the right trading decision.
Imagine that your analysis method will be enhanced with a chart demonstrating the prices where the most positions of big market players are at.
E.g., You drew technical levels in the chart and you see the majority of long positions concentrated in one of them. It won’t be easy for the price to go below it, as big market players will protect it in order not to incur losses. Knowing this will help you to enter a position that has a high prospect of profit, as well as the best risk/reward ratio.
If you already have a training plan, you can boost its efficiency by increasing the percentage of profitable trades generated by the trading strategy and volume indicator for MT4, as well as the volume indicator for MT5 because Real Market Volume operates with MetaTrader 5 too.
Here are a few other examples illustrating how you can use the information provided by the indicator to increase the number of profitable trades. Regardless of the trading strategy you use, if you spot an increase in trading volume within the existing trend, you can expect it to continue.
If the volume of long positions increases while the price moves in an upward channel (which is reflected by the histogram of the Real Market Volume indicator), this signals the continuation of the upward movement, and you can open long positions and hold them until the volumes grow along with quotes.
In a similar manner, an increase in the volumes of short positions during a downtrend indicates the continuation of the said movement, providing the trader with a sell signal. If the volume of trades drops while the price is rising and the number of short positions prevails, this means that the movement is about to die down and a price is going to reverse.
If the indicator demonstrates a drop in volumes and an increase in the number of open long positions while the price is going down, you can expect the trend to change to an uptrend and close your short positions.
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As you can see, with this Expert Advisor, you can trade more boldly, and most importantly, achieve bigger gains. Seeing the market through a prism of volumes will allow you to plan your next steps accordingly without relying on a random chance.
All you have to do is download an indicator in the personal account opened with Gerchik & Co and it will tackle this task for you automatically.
Aside from that, you will also have a straightforward installation guide and a short guide for trading strategies with the Real Market Volume indicator.
What’s more, you can add it on to the chart of any traded asset by selecting parameters individually for specific strategy and time frame. Now you can not only see the price movements but also understand the reasons behind them. This allows tracking down the actions of the big players and market makers by choosing entry points with the highest chance of profits.
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Now you have a handy and effective addition to your strategy which helps you enter the market more accurately. However, there is another aspect associated with the usage of Real Market Volume.
If you are able to find trades where the potential profit exceeds the risk by a factor of three, you will make profit even when a percentage of successful predictions is small.
Finding this type of entry point is not easy if you use technical analysis methods only. On the flip side, when you see the strongest levels in terms of volume accumulation, you get additional evidence for entering a position with a small stop loss and a large take profit.
So, the prices at which the largest number of long positions are concentrated will work as strong support levels since the market maker will protect them in all kinds of ways, without letting the price go lower.
You can open long positions from such levels (in cases where there is a simultaneous increase in the trading volume in the market) with a small stop loss, the size of which will also be recommended to you by the built-in EA of the Real Market Volume indicator.
The EA provides the trader with a clue on where to find the most profitable points for entering and exiting trades in a given situation based on three strategies.
By using the Real Market Volume indicator which allows you to see the market through the lens of volumes that create price movements, you will be able to improve your trading plan dramatically, along with the profit made in financial markets.
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