⚖️Strategy "Combining volume and balance"

Step 1. Go to "Add Widget" and open the Trading View tab.

Step 2. In the Trading View tab, select the trading instrument and the timeframe of interest.

Step 3. Open the "1EX Indicators" and turn on the "Balance indicator", then select the Rolling period

We get such a workspace window:

The value of the indicator lines:

Green line - relative value of the dominance of green candles (upward dynamics).

Red line - relative magnitude of the dominance of red candlesticks (downward dynamics).

Description of the trading strategy!!!!!

It is necessary to find a time interval in which the indicator lines converged with each other, forming the first balance point, then diverged for a certain distance and time, and converged again, forming the second balance point. After that, we stretch the "Fixed Range Volume Profile" tool over the resulting interval and determine the distance between the current price of the asset and the price at which the maximum amount of volume was traded for this interval (Point of control "POC") - this will be the potential for a deal.

Entry points to the deal

  1. Two balance points are identified on the balance indicator (indicated in the photo by points A,B), which form the interval AB.

  1. At this interval, we apply a horizontal volume to the tool.

  1. We check the distance from the current price (point C) to the price of the maximum traded volume (point D) - we measure the potential of the price move with a ruler.

If the potential of the move is small or the price has already reached the maximum volume level a little earlier, then it is better not to get into such positions.

Also, if the horizontal volume has recesses, then it is desirable to put the take at this level of imbalance (point E).

  1. After the above steps, we enter approximately at the opening of the candle (at point C) and with a hold to the maximum volume level (point D).

CONCLUSIONS:

You can use this strategy both independently and as one of the filters within a variety of trading strategies used by traders.

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