[Volume Based Candles] and how to profit

[notouch]

Any reversal candles (hammers, dojis, engulfing candles etc) are good indicators with constant volume bars. How quick you move depends on your settings. For scalps you'd use 233V but for a longer term perspective you can use 5000V. I prefer 1000V right now.

[brownsfan019]

	Quote:	TinGull
	And...do you think dojis hold more importance on a volume based chart? Say...after you witness the doji and all the sudden price starts moving fast as hell, you wanna be in on that as quick as possible, yea?

Tin - I think most/all candle patterns hold their water much more on a volume chart vs. a minute chart. The underlying theory of candles is to visually represent the 'fight' between the bulls and the bears. We also know that the more volume being traded at a particular time, the more movements usually happen. So, if you want to see volume and you want a visual representation of the bull/bear fight, there it is on one clean chart.

[walterw]

now (brow and notouch) you are presenting good arguments.... should I see some charts ? thanks in advance Walter.


TL is getting wild ¡¡¡ Thanks Soul for making possible this wonderfull familiy ¡¡¡

[TinGull]

Excellent. Thank you notouch and brown. I did a little looking over some 5kV charts and some 25kV for a longer term view. Interesting things that I'm seeing there. Its weird to not see the volume bars on my chart! HAHA

I might just have to start keeping a volume based chart up on my screen to watch from now on. See if it's gonna be something I can benefit from.

[brownsfan019]

	Quote:	walterw
	now (brow and notouch) you are presenting good arguments.... should I see some charts ? thanks in advance Walter.

Walter - I can post charts, that's not a problem, but as notouch said - you really need to see them in real time. They are just going to look like normal charts unless you pay close attention to the times on the charts. I would suggest opening a chart up with volume bars and compare it in real-time to your time based chart and see how things look.

[brownsfan019]

	Quote:	TinGull
	Excellent. Thank you notouch and brown. I did a little looking over some 5kV charts and some 25kV for a longer term view. Interesting things that I'm seeing there. Its weird to not see the volume bars on my chart! HAHA I might just have to start keeping a volume based chart up on my screen to watch from now on. See if it's gonna be something I can benefit from.

Tin - just like minute charts, volume based charts can be based on how 'quick' you want your charts to move.

Try out all different intervals and see what you think. I've read that you should use fib numbers, but I like round numbers. So, I wouldn't worry about setting it at 450 vs. 500 or 1000 vs 1500. Taking a sample of say 500, 2500, 5000, 10,000 could give a nice little sample to look at.

[TinGull]

Excellent...will do Look forward to tomorrow! Thanks

[domanaperth]

	Quote:	notouch
	Here's one I made earlier... This is from a while back. I think it was FOMC which caused the volume.

Hi
What format are you using for this chart? I don't seem to be able to view it even though the link [thumbnail] opens in a new window.

[MrPaul]

Brownsfan,

Really enjoying this thread..how did you intially come across volume candles, any educational resources out there?

[Robert2617]

I am enjoying this too! It's like a light bulb just turned on!

Q: What are you trading?
A: Shares and Contracts

Q: How are they measured, Time or Volume?
A: Volume

Q: What kind of chart should you use, Time or Volume?
A: VOLUME!

hahahahaha I love it!

Now I just need to figure out (1) how to determine what size volume bars to use and (2) how to read candles!

I guess the volume bar size that you should use needs to correlate to price movement of the instrument somehow. ie. How much volume causes the price to move. I'm going to start reading about and studying this right now.

I think this may be the golden ticket. Thank you for pointing me in this great direction.

::EDIT:: Go Browns!!!!