The VIX tells us whether the banks are interested in making price reverse hence the high volatility — big bars.

And supply and demand zones give us the point where it could reverse. That tells us traders are getting greedy about the future — the sharp decline probably made them think price would keep falling. With all these retail traders getting short, the banks have a huge number of sell orders to use for their own devices. In this case, taking profits off their sell trades, which requires lots of traders selling.

What happens when they take profits? Price reverses and begins rising, making most short traders lose, and giving the banks a retracement they can now use to get more sell trades placed — pretty smart, huh? As any professional trader will tell you, taking profits at the right time can be the difference between a good trade and a bad one. I could never find a method that got me out at the right time. However, a couple of years ago, I stumbled across something that actually worked quite well….

The heiken ashi chart shows the price, just like a normal candlestick does. However, rather than show the REAL price, it shows the AVERAGE price. It calculates the average, and then each candle appears bullish or bearish according to whether the average price rose or fell for that period of time.

Giving you a better idea of what the current trend is. The chart tells us to take profits whenever the candles change colour. That means the candles stay the same colour for much longer than usual, which gives us a better idea of the current trend. If the candles change colour, we know a new trend or big move could be about to begin. So, to take profits with the heiken ashi, you simply wait for the candles to change colour…. When they change, you take some profits because it shows the average price has changed;, price has a high probability of moving in the opposite direction for a while.

g three bull candles during a decline. Just move your stops closer to price — the volatility stop see below would be ideal for this. So by only taking a partial amount off, you can stay in the trade and continue to profit if price the trend stays the same.

Rather than show the volume via bars in a graph at the bottom, it shows them horizontally on the right-hand side of the chart. Why this strange change, you ask? It all comes down to what the bars show…. The bars reveal how much volume came in at each price, not on specific candlesticks. On top of showing price volume, the tool also shows whether the volume came from the buy-side green or sell-side red , allowing to see what traders were up to around that price. So essentially, volume profile is like the jacked-up bodybuilder version of the normal volume tool.

Combine that with the buy and sell volume, and you can pinpoint exactly what traders were up to during that time. All you need is a basic understanding of what the bars show and what that means for the price level. For example, big bars indicate high volume — obviously. That shows there was A LOT of activity around that price, meaning it must have some importance in the market.

The opposite is true for small bars. There are a few ways you can use the volume profile tool in your trading…. One of the easiest, however, is to help identify support and resistance points. As we all know, support and resistance levels mostly form the banks buying and selling. They perform some kind of action placing trades, taking profits, closing trades , and that causes a reversal, resulting in a level forming.

So, seeing high volume typically indicates a strong level of support or resistance. Take the piece of price action below, for example…. These clusters show that a significant amount of volume came into the market in and around those prices. But who could be behind such high volume? Only the banks, of course. They decided to come in and take some sort of action, like place trades or take profits, at those prices.

Keep the tool at zoom level 3 with the row size set to 80 for best results. Just head into the settings menu, change the row size, then zoom out 3 times from default. Knowing the right time and place to move our stops is something even the best traders struggle with.

What we need is a new way to know when and where to place our stop, a way that limits our risk ontop of being easy to implement. Using some fancy math, it combines the ATR — which shows the volatility — with the EMA — a trend indicator.

The result is a volatility adjusted picture of the current trend, as shown by the dots. The answer is because it takes into account the current volatility in the market… it gives you a more accurate view of the current trend, allowing you to keep your stop much closer to price when in a trade. With the volatility stop, this rarely happens because your stop moves as the volatility and trend changes.

Rather than it being stuck at a low or high until another forms, it moves with price, securing you consistency more profit and keeping you a safe distance away from the small fluctuations.

The volatility stop has been around for a while now. On Tradingview, the tool is found inside the indicators menu. Once the indicator is on the chart, you need to change its settings. Inside the menu, head over to the inputs box and change the multiplier to 3 and the Length to the following based on which timeframe you use:. They have their own meanings that are not subject to the interpretations of a trader. Indicators are often calculated based on specific prices, such as the opening and closing prices of certain periods.

Moving averages, for instance, make use of the opening and closing prices of a set number period to plot its lines. Although price action tools sometimes do this too, they often rely more on obvious visual patterns.

The better technical trading approach between price action and indicator-based trading depends on your preferences as a trader. Each approach can only be as good as the trader using it.

An indicator-based trader might make consistently profitable trades based on just one indicator, while another one piles up to 5 indicators on their chart and still racks up consistent losses. Similarly, two price action traders may interpret the same price action differently and each could end up at the opposite end in terms of profit and loss.

Because we do recommend you to use both. Use the strengths of one to complement the weaknesses of the other. You may rely on the objectiveness of indicators to form your judgment based on the price action analysis.

For example, you wait till your indicator gives you a buy signal and use the price action to determine your trade entries based on the signal of the indicator.

The chart below is an illustration. Another way to use them both is to simply use one to confirm the other. And when they are both signaling to buy, buy the pair.

Otherwise, you steer clear of the trade.

Some can actually be really useful, giving you important info for entering or managing trades, which can help you out immensely when it comes to making money. Time and experience obviously helps. The hardest part of identifying swing highs and lows is just that: identifying them. So no more scratching your head trying to figure out which highs and lows are swings… just add the indicator and every swing high and low appears for you on the chart. Sometimes it misses a few because of how the indicator calculates which highs and lows are swings.

This is only a minor issue mind you. The patternsmart indicator marks the swings automatically. To do this, add the indicator to the chart by searching for patternsmart in the indicators tab on Tradingview. Then, open up the settings menu by right-clicking one of the lines. Being a price action site, the last thing you probably expect to see on this list is a nasty lagging indicator. Basically, rather calculate the volatility over a set period — ala bollinger bands — it takes the current volatility from the lowest low and highest high and extrapolates that out 30 days — or whatever period you select.

The result is then shown via bars, which through their size and color, give you a sense of the volatility in the market. Well, volatility is a measure of how greedy or fearful traders are.

With fear and greed at a maximum, the banks have a big incentive to take the market the other way, either to make money — in the case of a reversal — or take profits or close trades, for retracements and consolidations. What the VIX allows us to do, then, is get a sense of when price may be reversing by quantifying the level of fear and greed in the market. Right before most of the above retracements and reversals began, the volatility was high — big bars started appearing, indicating traders were getting very fearful or greedy about the future.

Since that gave the banks an incentive to enter the market, it made a reversal highly likely, which is what we then see. e look for confluence. In this case, I suggest watching for a rise in volatility big bars when price enters a supply or demand zone. Supply and demand zones form from the banks either placing trades, taking profits, or closing trades.

But as I explained, the banks usually do one of the above when the volatility is high. The VIX tells us whether the banks are interested in making price reverse hence the high volatility — big bars. And supply and demand zones give us the point where it could reverse.

That tells us traders are getting greedy about the future — the sharp decline probably made them think price would keep falling. With all these retail traders getting short, the banks have a huge number of sell orders to use for their own devices.

In this case, taking profits off their sell trades, which requires lots of traders selling. What happens when they take profits? Price reverses and begins rising, making most short traders lose, and giving the banks a retracement they can now use to get more sell trades placed — pretty smart, huh? As any professional trader will tell you, taking profits at the right time can be the difference between a good trade and a bad one.

I could never find a method that got me out at the right time. However, a couple of years ago, I stumbled across something that actually worked quite well….

The heiken ashi chart shows the price, just like a normal candlestick does. However, rather than show the REAL price, it shows the AVERAGE price. It calculates the average, and then each candle appears bullish or bearish according to whether the average price rose or fell for that period of time.

Giving you a better idea of what the current trend is. The chart tells us to take profits whenever the candles change colour. That means the candles stay the same colour for much longer than usual, which gives us a better idea of the current trend. If the candles change colour, we know a new trend or big move could be about to begin.

So, to take profits with the heiken ashi, you simply wait for the candles to change colour…. When they change, you take some profits because it shows the average price has changed;, price has a high probability of moving in the opposite direction for a while. g three bull candles during a decline. Just move your stops closer to price — the volatility stop see below would be ideal for this.

So by only taking a partial amount off, you can stay in the trade and continue to profit if price the trend stays the same. Rather than show the volume via bars in a graph at the bottom, it shows them horizontally on the right-hand side of the chart.

Why this strange change, you ask? It all comes down to what the bars show…. The bars reveal how much volume came in at each price, not on specific candlesticks. On top of showing price volume, the tool also shows whether the volume came from the buy-side green or sell-side red , allowing to see what traders were up to around that price. So essentially, volume profile is like the jacked-up bodybuilder version of the normal volume tool.

Combine that with the buy and sell volume, and you can pinpoint exactly what traders were up to during that time.

All you need is a basic understanding of what the bars show and what that means for the price level. For example, big bars indicate high volume — obviously. That shows there was A LOT of activity around that price, meaning it must have some importance in the market. The opposite is true for small bars.

There are a few ways you can use the volume profile tool in your trading…. One of the easiest, however, is to help identify support and resistance points. As we all know, support and resistance levels mostly form the banks buying and selling. They perform some kind of action placing trades, taking profits, closing trades , and that causes a reversal, resulting in a level forming.

So, seeing high volume typically indicates a strong level of support or resistance. Take the piece of price action below, for example…. These clusters show that a significant amount of volume came into the market in and around those prices. But who could be behind such high volume? Only the banks, of course. They decided to come in and take some sort of action, like place trades or take profits, at those prices. Keep the tool at zoom level 3 with the row size set to 80 for best results.

Just head into the settings menu, change the row size, then zoom out 3 times from default. Knowing the right time and place to move our stops is something even the best traders struggle with. What we need is a new way to know when and where to place our stop, a way that limits our risk ontop of being easy to implement.

Using some fancy math, it combines the ATR — which shows the volatility — with the EMA — a trend indicator. The result is a volatility adjusted picture of the current trend, as shown by the dots. The answer is because it takes into account the current volatility in the market… it gives you a more accurate view of the current trend, allowing you to keep your stop much closer to price when in a trade. With the volatility stop, this rarely happens because your stop moves as the volatility and trend changes.

Rather than it being stuck at a low or high until another forms, it moves with price, securing you consistency more profit and keeping you a safe distance away from the small fluctuations. The volatility stop has been around for a while now. On Tradingview, the tool is found inside the indicators menu. Once the indicator is on the chart, you need to change its settings.

Inside the menu, head over to the inputs box and change the multiplier to 3 and the Length to the following based on which timeframe you use:. Doing this will help you avoid being spiked out, which can happen from time to time — usually during big news releases, but sometimes during retracements and consolidations.

Technical indicators will never be my cup of tea. However, the 5 listed here are worth taking a look at and have served me well in my time using them. Try them out yourself for a while and see what you think.

hi for swing 5 5 or swing high and low in chart there are some dot circle and some of them is long and short what that dott circle means? DON'T FORGET: Supply And Demand Course Now Available With VIP Membership. Find Out More. But not all indicators are bad… Some can actually be really useful, giving you important info for entering or managing trades, which can help you out immensely when it comes to making money.

Lows and highs form everywhere, so how do you know which are the right ones? Pretty cool, right? How To Use This Tool The patternsmart indicator marks the swings automatically.

These change how the indicator determines which highs and lows are swings. The Williams VIX indicator instead shows the volatility in the market.

But wait… why would we want to see the volatility anyway? The question now is, how do we use that in our trading? See for yourself… Right before most of the above retracements and reversals began, the volatility was high — big bars started appearing, indicating traders were getting very fearful or greedy about the future.

By putting two and two together then, we know when and where price could reverse. Give it a try yourself, see what works best for you. However, a couple of years ago, I stumbled across something that actually worked quite well… The Heiken Ashi chart. The answer lies in what it shows. So, to take profits with the heiken ashi, you simply wait for the candles to change colour… When they change, you take some profits because it shows the average price has changed;, price has a high probability of moving in the opposite direction for a while.

If the candles turn green, you take profits off your long trade.

There are a few ways you can use the volume profile tool in your trading… One of the easiest, however, is to help identify support and resistance points. These clusters show that a significant amount of volume came into the market in and around those prices. They decided to come in and take some sort of action, like place trades or take profits, at those prices That resulted in a period of high volume and caused a support and resistance level to form. So, seeing high volume typically indicates a strong level of support or resistance. What the VIX allows us to do, then, is get a sense of when price may be reversing by quantifying the level of fear and greed in the market. What time frame do your signals cover?

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