When not to trade?

[dennisth19]

hi there,

can give me anyone a good hint to see only on 2 seconds or so, if there is enough volume or enough trending situation?
today the ao/waves indicator showed lot of orange bars. is this a good sign not to trade?

thanks, dennis

[snorm]

hi there,

can give me anyone a good hint to see only on 2 seconds or so, if there is enough volume or enough trending situation?
today the ao/waves indicator showed lot of orange bars. is this a good sign not to trade?

thanks, dennis

Hi Dennis

One of the primary purposes of the Alligator (current and higher time frames) is to give you a 2-second, if not 1-second, view on a trending situation.

Lots of orange bars show range-bound price action - such a range can be angled or straight. Relatively deep pull-backs, as in your chart, munch the stops and make for a less than pleasurable trading experience. No one can see it coming but when I get bitten a couple of times from it, I'll stop trading until the next session - the chances are that price will then be out of its range-shackles, with plenty of pips to be had. The alternative is to reduce your contract size and widen your stops ... but only if that's in your trading plan :-B

cheers
Steve

[dennisth19]

hi snorm,

thanks for your opinion. i think to see if there is a trending market the alligator is really the best to check.
what do you think about volume to check? how its possible to see immediatly, if there is enough volume there?
i know, i can count pips between a certain range- but is there a better solution with an indicator or so?


dennis

[immy]

hi snorm,

thanks for your opinion. i think to see if there is a trending market the alligator is really the best to check.
what do you think about volume to check? how its possible to see immediatly, if there is enough volume there?
i know, i can count pips between a certain range- but is there a better solution with an indicator or so?


dennis

There is no real volume in MT4 but the number of ticks per candle can be tracked by doing the following. After some observation you will learn that the number of ticks range between a certain high and low number.

07-02-2012 16-59-04.png

[snorm]

hi snorm,

thanks for your opinion. i think to see if there is a trending market the alligator is really the best to check.
what do you think about volume to check? how its possible to see immediatly, if there is enough volume there?
i know, i can count pips between a certain range- but is there a better solution with an indicator or so?


dennis

Hi Dennis

you can switch the volume indicator on if you like (chart - properties - show volume) but I never use it. MetaTrader volume data is useless, in my opinion. It's pretty much safe to assume that there will be plenty of volume anytime during the London session, but not just before a big news announcement and not during holidays. Best advice: keep it simple and see what price action is telling you. Good fluid movements tell you heaps about volume.

cheers
Steve

[dennisth19]

hi snorm,

thanks for your opinion. i think to see if there is a trending market the alligator is really the best to check.
what do you think about volume to check? how its possible to see immediatly, if there is enough volume there?
i know, i can count pips between a certain range- but is there a better solution with an indicator or so?


dennis

There is no real volume in MT4 but the number of ticks per candle can be tracked by doing the following. After some observation you will learn that the number of ticks range between a certain high and low number.

07-02-2012 16-59-04.png

thats a great hint. i will search for an indicator that count the ticks from the last high/low or x bars... if i find, i will post it here

[azadar]

I dont have that much experience trading AIMS but personally I find volume useful. After all we trade breakouts with AIMS and volume is a great indicator to confirm a breakout. If a breakout happens on low volume, chances are it will reverse. If volume is constantly high when breakout happens then there are good chances the price will keep moving in the same direction.

I also use volume to avoid trading during low volume periods as price doesnt move enough during those times to be worth the risk.

This is just my opinion, I might be wrong as I dont have that much experience with aims.