ER2 with Fibs, Sell Volume, and VAH break

[Soultrader 12]

Here is an interesting setup I took today. I am using the TTM Trend and Volume Delta indicator. What the volume delta does is takes the buy volume vs sell volume and places whatever is greater on top.

 

The dots are part of the divergence you see between the TTM and Volume Delta. So if the TTM remains blue but there is more sell volume, it will plot a red dot. If the TTM remains red and there is more buy volume, it will plot a blue dot.

 

The basic concept of this dot is to use it at key pivots/price levels. Alot of the dots are noise so it is very important to use it only at S&R level or a level you are looking to trade.

 

 

 

The chart shows a fib retracement line drawn from the beginning of the downtrend to the swing low. What I usually look at is the 50% fib retracement in a decline. Now right at the 50% retracement line, a red dot appears indicating more sell volume. This is the first signal for a short setup.

 

The second signal is a price break below VAH. This is not a mechanical setup but a discretionary one. I dont look for cases when the 50% retracement is above the VAH. All I did was plot a fib line... saw sellers at the 50% and then shorted as prices broke below VAH.

 

Notice the last few bars on the chart. We have a red price bar (TTM) with a green dot. You can see that shorts are starting to cover at this point.

 

Happy trading

[slableak 10]

Soultrader, how do you get the VAH to plot on the chart as a line?

[Soultrader 12]

I draw those in manually slableek

[slableak 10]

That is what I need to learn how to calculate so i can draw them in too. Is that on this web site?

[walterw 10]

slab : you can find Mp levels numbers for the day here : Daily Notes for Day Traders | Pivot Points for Index Futures and more cheers Walter.