welcome to episode 170 after 10,000trade show where we are mastering trading and creating excellence throughthe deliberate practice and analysis of 10,000 traits in this episode we willtake a look at how to use volume in trading Forex volume is something thatis generally not used in forex a lot however
it can play an important role inour trading we'll take a look at how to use volume what exactly we're lookingfor when we are looking at volume and how to use volume with price action toplace better trades so let's go onto the charts and see how we can use
this tool here we are looking at how to use volumein forex or another way to say this is how to do a volume price analysis in forX this is euro yen a one-hour chart generally we don't always talk about avolume in forex however there is a good way
to use volume and get highprobability trades out of that in this case we will be bringing together a fewdifferent things that show us that price is likely to turn first from a priceaction point view we have a bearish engulfing candle close this is just thatprice is likely to
drop and then we have support and resistance level here wealso have this indicator our one level of our pivot point all of thesedifferent confluence is coming together suggest that this is a high probabilitytrade now we can layer a volume on top of that so as you see when
our bearishengulfing candle closes if we go all the way down into volume this is the firsttime we actually get a read volume so for the last little while here as we cansee in the bottom we have green volume we have one bar here which is not verystrong we
just have green volume there's really no red volume coming in here onceyou get this bearish engulfing candle close we see that our red volume hascome in so we are looking to make sure that our volume confirms our priceaction that's how I like to use volume so as the
price closes here we get abearish engulfing candle close we can look for a bit of a pullback becausethis is a large candle and generally we tend to get pull backs after these largecandles so we look for a pullback and enter the trade short here our stopwould go above
the high we can put it on other side of our pivot point our twolevel here and we look for price to drop and as price continues dropping here andwe look at the volume we see that price is moving lower and our volume isincreasing which is a good sign
that trade is progressing as we wanted tobecause once we start to see divergence betweenthe volume and price so let's say the price is dropping but the volume isn'tsupporting that and volume starts decrease that suggests that price islikely going to reverse so as we see here price is moving
lower and each redcandle here has red volume which is good and then we get this pullback candle butit closes below our s2 level and we see that we don't get green volume sothere's no buying volume the volume is neutralwe suggest that price could drop still and then we
get next candle here and ourvolume is red and then we see that price pulls back again at our s3 level so nowprices moved all the way from a pivot point our one level to s3 level sothat's a quite a large move and we start to see that the
volume here starts todiverge now so we have red volume but a green candle close and another redvolume but green candle close and then price starts to come back again so thisis where we can take our trade off because right now price is just goingsideways and volume is not
really showing as much so there's a divergencebetween what the price is doing and what the volume is showing us so it's a goodtime to exit the trade plus from our support resistance point of view we havehit the next level and from our indicator point of view we are
at f3price closes above our s3 support level in our pivot point indicator so thedifferent confluences coming together show to show us that the price may haverun its course and now we could start seeing pull box so a good time to exitthe trade from entry to exit here we
get 91 pips in the trade so just to recapthe way I like to use volume in forex is to use it as a confluence so I like tolayer things on top here we have multiple things coming together to showus that this is a high probability trade and volume
is just another thing that wecan layer on top to show us that the tradeis likely to work in our direction so we have price action which is our bearishengulfing counter close we have indicator which is our pivot point ourone level we have support resistance and then as we
can see we can layer thevolume on top and we want to see red volume when we are selling and we alsowant to make sure that the volume increases so if you see here volume isgoing up which means price is going in the right directionsellers are stepping in that's
why the volume is going up and as we can see wecan we start to see divergence here as price starts to go sideways so it's goodtime to exit the trade again from entry to exit we have 91 pips in the trade soour profit is 91 pips or nine
hundred and ten dollars if trading once then alot if you'd like to learn more profitable forex trading strategies likethis one I invite you to visit my course at trading with Venus com forward slashforex course in the course I will show you how to read the candlesticks anddifferent chart
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the differentfundamental factors drive market price I will also share with you the tradingstrategies that I personally use that I have found to be the most profitablewe'll also talk about trade management and how to manage your account andmanage your risk so that you become a profitable trader I will
also show youtons of examples that you can go and check out so that you are able to seethese trades set up in the live markets as well as a bonus you will get accessto my pivot point indicator if you have watched any of my videos you know Ireally
love trading the pivot points so you will receive that as a special bonusthe price of the course is four hundred and ninety seven dollars to sign up forit please go to trading with Venus comm forward slash forex course thank you somuch for joining me today I hope you
enjoyed this trade setup ifyou liked this episode please feel free to subscribe to the channel as well asshare this with your friends I'll be back with another great trade setup nexttime
