# Strategy "Return to Volume"

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

<figure><img src="/files/QU74SLsIb0YJgxQ06QHT" alt=""><figcaption></figcaption></figure>

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

<figure><img src="/files/b0zaUimPX1uXYmExiULr" alt=""><figcaption></figcaption></figure>

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

<figure><img src="/files/DvRr3MVJd079WbNaKw3P" alt=""><figcaption></figcaption></figure>

{% hint style="warning" %}
**IMPORTANT!!!**

The "**Rolling period**" field is the time interval for which the indicator calculates a certain value.

To get better results, you need to choose a period that will be a multiple of 20-50 times your working timeframe on the instrument chart. Lower multiplicity means higher sensitivity, higher multiplicity means lower sensitivity.

**Example:** TF = 5 minutes, Period = 4 hours (48 candles of 5 minutes each).
{% endhint %}

We get such a workspace window:

<figure><img src="/files/rpmMtvyxwR15qjDpzDeC" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
**The value of the indicator lines:**

*<mark style="color:green;">Green line</mark>* - relative value of the dominance of green candles (upward dynamics).

*<mark style="color:red;">Red line</mark>* - relative magnitude of the dominance of red candlesticks (downward dynamics).
{% endhint %}

**Description of the trading strategy!!!!!**

We find a situation in which the balance indicator shows a critical imbalance, that is, the obvious dominance of one of the sides (red or green candles), then apply the "Fixed Range Volume Profile" tool (horizontal volume) to the interval from the balance point to the point of critical imbalance, after which we measure the distance from the current asset price to the maximum volume level horizontal balance (Point of control "POC") and we expect the price to return to the maximum volume.

## Entry points to the deal

1. First, you need to determine what the critical imbalance will be, that is, how strong the dominance of one of the sides (red or green candlesticks) should be to determine the reversal.

{% hint style="info" %}
**The critical imbalance** will vary depending on the type of traded instrument (more volatile, medium volatile, less volatile). The higher the volatility of the instrument, the higher the critical imbalance.

The optimal value is considered to be from 0.67, since this value corresponds to the "**Two-thirds**" rule - going beyond two-thirds has a low probability, therefore such values are considered critical (game theory).
{% endhint %}

<figure><img src="/files/jZSve5dy2u5WRTo4ir5c" alt=""><figcaption></figcaption></figure>

2. Using vertical lines, we select the interval from the balance point (point A) to the point of critical imbalance (point B).

<figure><img src="/files/3smllj6soAYuFikdK9Gi" alt=""><figcaption></figcaption></figure>

3. On the AB interval, we apply the "Fixed Range Volume Profile" tool (horizontal volume), which is located in the left panel of the graph window.

<figure><img src="/files/gvZ6hA1TsrofbB39dHWl" alt=""><figcaption></figcaption></figure>

4. We measure the price movement potential using the Ruler tool (in the left panel of the chart window) from the current asset price (point P) to the maximum volume level (point V).

<figure><img src="/files/Z8aNW5pLTyomvhlHQ0WJ" alt=""><figcaption></figcaption></figure>

5. We enter the position at the opening of the next candle (point S) and the PV segment will be our potential profit.

<figure><img src="/files/7YS8qalVnctow1HhHXS7" alt=""><figcaption></figcaption></figure>

{% hint style="success" %}
The trading result in this situation is +1.06% excluding leverage.
{% endhint %}

{% hint style="warning" %}
**Additional conditions!**

The horizontal volume should have a normal distribution (based on the "Normal Gaussian distribution" rule).

After entering a trade, it is necessary to monitor the flow of volume, as it reduces the potential profit.

See the examples below
{% endhint %}

<figure><img src="/files/4W0nxSLEP3x4P3Rg8Sr2" alt=""><figcaption><p>An example of a non-normal distribution</p></figcaption></figure>

<figure><img src="/files/sD3ajrtMW3xMpbiNXFf3" alt=""><figcaption><p>Example with volume transition</p></figcaption></figure>

CONCLUSIONS:

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

{% hint style="danger" %}
**IMPORTANT!** Trading involves risks. The user is solely responsible for their actions or inactions when using the described trading strategy. The strategy and its description are for informational purposes only. The information provided here does not constitute personalized investment advice. News, articles, expert comments, research, forecasts, and other information are presented without considering any specific investment profile, and the financial instruments or operations mentioned may not align with the expected returns, investment horizon, or acceptable risk levels for any particular user. Company 1EX is not responsible for any potential losses resulting from trades based on the described strategy or investments in the financial instruments mentioned in this publication.
{% endhint %}


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://1ex.gitbook.io/1ex-news/user-manual-eng/general/trading-strategies/day-swing-strategies/strategy-return-to-volume.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.