Principles of market movements - MT4/MT5 resources
The main purpose of this clue is to understand the direction of the market with the help of trading volume. The implication of all theories is very simple: the market forms trading volume and then trades based on the price of the maximum volume.
http://savepic.ru/373672.png http://savepic.ru/356264.png
Simple example. Let's take any day as an example, such as 01.12 (Euro futures): the trading volume for that day is generated based on the price 1,262:
You can get the amount of data from a program that uses feeds.
http://savepic.ru/391236.png
http://savepic.ru/374835.png
Now let's take a look at how the trading volume looked on the second day.
http://savepic.ru/375859.png
Buy from the previous day's maximum volume accumulation.
This is important. All intraday moves are dependent on the day's intraday trading volume + last trading volume. The Forex market follows these quotes.
The market with these injections (volumes) looks like a "bounce" shape, as shown in the chart above. Why does the market react so strongly to volume?
The prices at which large volumes accumulate are the prices at which big players buy or sell, and they know how the system works.
At prices like these, with volumes in the hundreds of millions of dollars, these prices are critical levels for trading in any market.
In Example 2.12, this situation can be described like this:
On Monday, a large number of positions entered the market at the same price. Think of it as a price with big money behind it.
On Tuesday we saw that from 4:00 the market was above this level from the previous day and only pushed the market to 1,262 points. Ordinary traders cannot resist the injection of large sums of money. We see the market react to a price with higher volume by rebounding from that price.
http://savepic.ru/373672.png http://savepic.ru/356264.png
Simple example. Let's take any day as an example, such as 01.12 (Euro futures): the trading volume for that day is generated based on the price 1,262:
You can get the amount of data from a program that uses feeds.
http://savepic.ru/391236.png
http://savepic.ru/374835.png
Now let's take a look at how the trading volume looked on the second day.
http://savepic.ru/375859.png
Buy from the previous day's maximum volume accumulation.
This is important. All intraday moves are dependent on the day's intraday trading volume + last trading volume. The Forex market follows these quotes.
The market with these injections (volumes) looks like a "bounce" shape, as shown in the chart above. Why does the market react so strongly to volume?
The prices at which large volumes accumulate are the prices at which big players buy or sell, and they know how the system works.
At prices like these, with volumes in the hundreds of millions of dollars, these prices are critical levels for trading in any market.
In Example 2.12, this situation can be described like this:
On Monday, a large number of positions entered the market at the same price. Think of it as a price with big money behind it.
On Tuesday we saw that from 4:00 the market was above this level from the previous day and only pushed the market to 1,262 points. Ordinary traders cannot resist the injection of large sums of money. We see the market react to a price with higher volume by rebounding from that price.
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