Recommended for trading using Richard Wyckoff's VSA - Volume Spread Analysis.
The market is unfair if for no other reason than only 10% of participants manage 90% of funds. An ordinary trader has slim changes to stand against these "vultures". However, not everything is as hopeless as it seems at first glance. This problem can be solved. You just need to be among these 10% of kites, learn to predict their intentions and move with them.
Volume is the only preemptive factor which faultlessly work on any timeframe and symbol. First the volume appears/accumulated, and only then the price moves. The price moves from one volume to another. Areas, where volumes are accumulated on the chart, represent firm support/resistance levels.
The BoxChart indicator combines two components - the market profile (horizontal volumes) and standard tick volumes, detects their crossing areas, sorts and highlights these areas with corresponding color, and thus simplifies visual reception of the market situation.
You are able to view the volumes, analyze them and perform your deals based on them. The only unnecessary thing on the chart is the chart itself.
The method of trading using this indicator comes down to trading from one strong area to another. Areas of volume accumulation are regularly tested by the price, providing the best entry opportunity. We will never see what happens inside each accumulation but there are some signs which allow to predict further market movement. If you see that lower extreme points of the chart have "stronger" accumulation areas than the higher extreme points do, buy orders prevail on the market and we can await for an uptrend. And vice versa, if you see that higher extreme points of the chart have "stronger" accumulation areas than the lower extreme points do, sell orders prevail on the market and we can await for a downtrend.
BoxChart MT4
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