so you're a day trader right and you
want to chase the volume
of transactions with whatever currency
pair your trade most people are under
the impression
that when you get into the high volume
areas
that's when you're going to make the
most money but in this video i'm going
to show you how to use the volume
indicator to actually show you a
reversal
[Music]
welcome back to the channel everybody my
name is artie and this is the moving
average a show where we discuss
everything day trading to keep you
profitable on a consistent basis
so when trading forex or
cryptocurrencies or whatever like forex
for example
is the highest volume highest
transaction
market in the world like it is the
biggest there's
trillions of dollars every single month
being swapped in forex
so let's just jump right into the charts
and i'm going to show you exactly what
i'm talking about when you first log
into your trading view account and jump
into a chart
the first indicator the only indicator
that they put up on the screen for you
is a volume indicator you can see it
right here on the bottom we have big red
candles we have big green candles and it
shows
high volume in correlation with this you
can see
large spikes in a direction when there's
a lot of red candles
there's probably 57 000 different volume
indicators but this is the built-in one
and this is pretty much all you need
you don't really need to know the amount
of volume that's going in you just need
to see
a clear growth in volume for example you
do not want to get
into a consolidating market whatsoever
when the price is doing this you could
sit in this trade for five
hours while it doesn't move and it's
extremely frustrating and you might even
get
that trade into the next day and have to
pay swap fees
it's not fun so to avoid consolidating
markets to avoid
being trapped in here for hours on end
just take a glance at the volume
indicator
if you see extremely low volume do not
get into that pair whatsoever
then when it's done consolidating you
can see right here we started to get
some spikes in volume
and the price subsequently did likewise
but you want to use the volume indicator
to actually find
entries for your trades right you want
to find directions of your trades
and you want to use this to say hey
that's the direction it's going
the cool thing about the volume
indicator if you really know the markets
and you've been trading for quite a
while you can actually
see what's going on here just strictly
from the volume
let me show you an example okay i've
made this as big as i can so you guys
can see exactly what i'm talking about
so we have this right this consolidation
area
it's also clearly represented in the
volume
by extremely low volume on this currency
pair at this time
the average trader is looking at
consolidation
and waiting for a breakout because they
know that once it breaks out of that
consolidation it's just gonna run
in that direction look at this area
right here
you can see it's basically just not
doing
anything then we get a taller
red candle right here and a taller
red candle right here people are seeing
these two
volume indicators and saying oh you know
the price might move to the downside
and that's exactly the trap that you
should be keeping an eye out for
i talk about it in a lot of my videos
there are always traps laid out for the
retail trader because the retail trader
funds all of the billionaires if you
were patient
and waited for the trap waited for the
trap to be
set and then a high high high volume
long engulfing wick in the opposite
direction
and that's exactly what happened here we
started to have some higher volume
than we did in this consolidation range
people got
overly excited they jumped the gun they
went in on a short position
and then boom we got this big fat
bullish engulfing candle
and the volume showed likewise and we
maintained that trend up even if you
just waited for this
one candle to close on this one move you
could have gotten 31 pips
now that's how to use the volume
indicator to actually kind of get an
idea
of where the traps are the second way
that i like to use the volume indicator
is to help me find where people
are being stop hunted the stop-loss
hunt is insane sometimes on some of
these currency pairs
you will see one candle go 100 pips in
five minutes now i'm going to show you
this happens all the time
you can see these massive massive spikes
on the volume
and those are literally just stop hunts
for example this one
the price started going down it started
curving up like crazy
and then we got this massive volume
spike down trying to hit everybody's
stop loss and then the price continued
up this right here
quick stop hunt this is an even bigger
example we were consolidating the price
started to go down
we get this massive volume up like this
is absurd amounts of volume
compared to the rest of everything like
you can see how huge this candle spike
is on the volume
stop loss hunt consolidate and then
reverse back down so if you think that
you're being stop hunted
look for these massive spiked candles on
the volume indicator
and you'll know for sure at that point
if you're in a position
you can easily get out of it take the
loss
but then reverse your position and go
with that stop hunt because you don't
know when it's going to stop i've seen
stop hunts go
150 170 pips in one day and again like i
said at the beginning of my video
you can actually use this as an
indication of price reversal
so after this huge huge spike in the
volume meter
you know that the price is going to
correct down a little bit it's not going
to reverse
fully but you will get a nice fat
correction of about 50
of that spike so you can scalp that 50
call it quits using the volume indicator
is
it's a nice tool but i wouldn't rely on
it solely it just gives you
a visual representation of how much
liquidity is in the market at any given
time what you want to do is stick to
your strategy
and use the volume indicator as like the
reassuring click so if you've got all
your analysis
done and then you pop up the volume
indicator you can see
okay yeah i'm right yeah there's high
volume here or oh i'm not going to get
in on this trade
because it's just consolidating the
volume is not there so i only recommend
this for
experienced traders like you need to
have strategies that you've just
mastered and use the volume indicator as
a supplement
in your day trading don't rely solely
on the volume indicator so if you guys
are still watching this video
guess what that means that you like the
video so if you wouldn't mind smash the
like button
below my face i really appreciate it it
makes me feel good about myself
consider subscribing to the channel if
you haven't already and we will see you
in the next video