VolumeSignals
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First post – ESZ7 Oct 25 Price Reversal
Hello everyone, here we will be discussing every aspect of the Volume Signals technology and show you actual signals as we find them in the charts. The best way in our opinion to start off, is certainly reading all about the algorithms behind Volume Signals here. But actually seeing the signals themselves in action is also a pretty good way to get acquainted with the technology. That is why in this first post we will jump right into the ESZ7 symbol from Oct 25:
Let us explain the chart first. The main chart area shows an OHLC view of the price in 1 hour intervals. On Oct 25 the day started at 2565 with a continuous price drop that lasted until 12:00. The panel at the bottom shows the Institutional Volume in golden bars, i.e. the volume generated from large trades, e.g. from banks and funds. Notice, that while the price was falling, the golden bars were rising, accumulating 30K lot. The "strong hands" were buying whatever the retail crowd was selling. After 12:00 they eventually pushed the price back up again from 2545 to 2560. Entering a long position that day after the price reversal, lets say at 2550 and backed by the support of continuous Institutional buys till 2560 would yield a profit of 40 ticks!
You can see the same movement in the ESZ7 4 hour interval, which will still be visible for a month from now on that chart:
Hello everyone, here we will be discussing every aspect of the Volume Signals technology and show you actual signals as we find them in the charts. The best way in our opinion to start off, is certainly reading all about the algorithms behind Volume Signals here. But actually seeing the signals themselves in action is also a pretty good way to get acquainted with the technology. That is why in this first post we will jump right into the ESZ7 symbol from Oct 25:
Let us explain the chart first. The main chart area shows an OHLC view of the price in 1 hour intervals. On Oct 25 the day started at 2565 with a continuous price drop that lasted until 12:00. The panel at the bottom shows the Institutional Volume in golden bars, i.e. the volume generated from large trades, e.g. from banks and funds. Notice, that while the price was falling, the golden bars were rising, accumulating 30K lot. The "strong hands" were buying whatever the retail crowd was selling. After 12:00 they eventually pushed the price back up again from 2545 to 2560. Entering a long position that day after the price reversal, lets say at 2550 and backed by the support of continuous Institutional buys till 2560 would yield a profit of 40 ticks!
You can see the same movement in the ESZ7 4 hour interval, which will still be visible for a month from now on that chart:
