Voted #1 Blog and #1 Brokerage Services on TraderPlanet for 2016!!
Today I am sharing an example of using volume chart along with FIB levels when following intraday market action.
Market is NQ
Chart type is CVB = constant volume bar
5000 contracts traded complete one bar.
This model uses a theory that when it comes to short term day trading, volume is much more important than time, hence the use of volume bars. I use bars of between 1,000 to 18,000 contracts traded (pending the specific market, based on recent volatility, trade volume and a few other factors). That means that instead of bars completing based on time frame (i.e. 1 minute or 15 minutes etc.), we use volume instead of time. So each time X,000 contracts traded, a new bar will complete. When the specific market has high volume and is moving fast, the bars will complete faster. When market is in low volume without much action, the bars will complete slower.
For me personally, this has helped getting signals ahead of time when there is fast action in the market and avoiding false signals when volume is low.
Needless to say volume charts on their own are no crystal ball and there is much more to trading but may help you take a look at your charts from a a diff. angle.
NQ Emini – Nasdaq Volume Base Chart, 5000 contracts 1.13.2021
To access a free trial to the ALGOS shown in the chart along with other tools, visit and sign up for a free trial
for 21 days with real-time data.
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.
Futures Trading Levels
Economic Reports, source:
This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.
Tags: day trading indicies > discount futures broker > Emini NQ > nasdaq futures
Posted in: Future Trading News