Market profile in commodities trading

Different methods of analysis of volumes

On the basis of the platform VOLFIX

VOLFIX

PROGRAM FEATURES

• 1. Horizontal volumes.

• 2. Cluster volumes.

• 3. Local volume emissions - how to analyze them.

• 4. Vertical volumes + Delta Bid / ASK.

• 5. Revers chart.

• 6. Range bar chart.

• 7. Combo bar - connecting several periods

HORIZONTAL VOLUMES

• Work on all the instruments, but have their own specifics. They’re very important to determine the tactical inputs for the mid-term trader. They are a good guide for the input and output.

• Current volumes of accumulation, volumes of accumulation for the previous period, as well as for the selected period may be important.

THE LONG-TERM PERIOD. OIL (CL) SEVERAL TIMES FOUGHT BACK FROM AN IMPORTANT ACCUMULATION LEVEL

MEDIUM TERM (1 HOUR). BREAKING OFF IMPORTANT LEVEL OF ACCUMULATION FOR THE BRITISH POUND, THE HOURLY CHART.

SHORT-TERM (INTRADAY). BREAKING OFF THE LEVEL OF DAILY SAVINGS. EURO / DOLLAR(6Е)

CLUSTER VOLUMES

• Have several important functions :

• Determine the places (levels) of active trading ranges.

• With high probability identify the level of breaking-thru or breaking-off.

• Are the areas of support / resistance for the following periods.

• Depending on the shape of the bar and accumulation, provide other information on the probabilistic direction of price movement.

VOLUMES ON THE DAILY TIMEFRAMES. THE SHAPE OF THE BAR INDICATING THE POSSIBILITY OF REVERSAL

DAYTIME ACCUMULATION. EXTRA LARGE VOLUME - VERY AGGRESSIVE TRADES.

DAY PROFILE - A FORM OF CONTINUATION

HOURLY PROFILE - THE BREAKDOWN OF THE LEVEL. STRONG VOLUME IS BELOW. HIGH PROBABILITY OF MOVEMENT CONTINUATION.

THE HOURLY CHART – LEVEL BREAKING-OFF.

15 MIN CHART– CRITICAL LEVEL BREAKING-OFF. LARGE VOLUMES WERE FORMED OVER, BUT NOT UNDER THE LEVEL

15 MIN CHART. BREAKDOWN OF IMPORTANT LEVEL. VOLUMES WERE FORMED ABOVE THE LEVEL.

LOCAL INTRA-DAY VOLUMES

• Local volumes appear on the important support and resistance levels.

• Depending on the location of volumes, it is possible to predict a further break-off / breakdown of the level.

• The impact of force and rate of accumulation is important to predict with high probability – whether it’s a break-off or a breakdown of the level.

BREAKING-OFF WITH CONFIRMATION

BREAKING-OFFWITHOUT CONFIRMATION

LEVEL BREAKING-THROUGH WITH CONFIRMATION

LEVEL TEST WITHOUT VOLUMES & LEVEL BREAKING-THROUGH WITH VOLUMES

VERTICAL VOLUMES WITH DELTA

• IMPORTANT 1: negative delta does not mean the sale. Number of contracts sold on the stock exchange is always equal to the purchased. This is just an indication of the Seller aggression. And vice versa.

• IMPORTANT 2: so you can not open a position only on the basis of this indicator. In many instruments it works "conversely". Learn statistics.

• IMPORTANT 3: this data is calculated (i.e. it’s calculated, based on the formulas), it is not a direct data from the exchange (as the price and the volume), therefore, depending on the formula for calculating, it may have different indicators.

DAY TIMEFRAME. DESPITE THE GROWTH, THERE IS A NEGATIVE DELTA. THE FALL CONTINUES.

ATTENUATION OF AGGRESSIVE PURCHASES AT LOCAL LEVELS. IT MAY BE A REVERSAL.

IN SPITE OF THE STRONG DECREASE OF THE DAY, THERE’S A BIG ENOUGH POSITIVE DELTA - HIGH PROBABILITY OF FURTHER GROWTH IN THE NEXT DAY.

REVERSE CHART

• Nonlinear building of bars.

• Designed to work within a day.

• Behavior at different levels of breaking-off and resistance shows the mood of the market.

• High probability for forecast of level breaking-off or breaking-through.

STRONG VOLUME FOR THE BREAKDOWN. CONTINUATION OF THE MOVEMENT.

REVERSAL WITH THE CONFIRMATION NEAR THE LEVEL

NO NEED TO HURRY. FROM 2 TO 3 O’CLOCK BUYING PREVAILED. AFTER 3 O’CLOCK - THE SELLING. SAFE SHORTS.

RANGE BAR CHART

• Nonlinear building of bars.

• It is intended rather for the medium-term tactical inputs.

• You can use bars of accumulation, delta and size.

WITH IDENTICAL BAR VOLUMES (EACH BAR IS FORMED AFTER ACCUMULATING 5,000 LOTS), IT’S CLEARLY SEEN, THAT THE REDUCTION BARS HAVE A NEGATIVE DELTA MUCH STRONGER, THAN THE INCREASE BARS HAVE THE POSITIVE ONE

EXAMPLE 2. ON THE CONTRARY. WITH A SET OF (50 000 LOTS), INCREASING BARS HAVE SIGNIFICANTLY HIGHER POSITIVE DELTA, THAN LOWERING BARS HAVE THE NEGATIVE ONE.

EVEN MORE CLEAR DEMONSTRATION, IF YOU RANK THE PREVIOUS EXAMPLE BY DELTA (5000 LOTS)

COMBO BAR

• It allows you to connect the different periods of the same instrument.

• At the same time you can see the accumulation levels for each period.

• These levels may act as support and resistance in the subsequent approach.

THE WEEKLY CHART. BREAKING-OFF IMPORTANT ACCUMULATION LEVELS.

THE DAILY CHART. BREAKING-OFF SIGNIFICANT ACCUMULATION LEVELS

CONSTRUCTING ARBITRAGE TRADES

• Arbitration intraday in the Tick chart module.

• Arbitrage more than one day in the Bar chart module.

ARBITRATION WITHIN A DAY(BRENT/CRUDE OIL)

WEEKLY ARBITRATION (FDAX/FESX)

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• We work with a variety of strategies and tools.

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