Volume Ticks ResSup Demo
The market price is moved by the market makers with large amounts of equity. The only way to understand intentions of big players is to track their activity by concentration of volumes on one level or another. Volume Ticks ResSup draws a level with the maximum concentration of a tick volume since the beginning of a day. In most cases, such level is an actual support or resistance level.
- ColorLevelSupport—the color of support line;
- ColorLevelResistance—the color of resistance lines;
- BarsDayCount—the number of days to display the indicator.
The indicator can be useful for the traders who are familiar with the basics of VSA (volume spread analysis). Describing VSA in details here is hardly appropriate. I'd like to mention two main points.
- If a level appears at the end of a trend, this means that the big player closes positions. Close positions with the trend and look for confirmation signals of a trend reversal. Signals can be based on РriceАctions, 1-2-3 patterns or reverse momentum (whatever you like).
- If a level appears at the breakthrough of the flat, then the market maker aggressively moves the price towards the breakthrough. The time of entry the market is determined best on the M5 period. I use the momentum for estimating the signal to avoid catching the false breakthrough and to assess the strength of the trend.
If you do not find confirmation signals to enter a position, it is better to stay out of the market. The Volume Ticks ResSup indicator is a good assistant to help you estimate the market situation.