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2019, 22)38
“Knowing what the Pro’s are doing makes all the difference.” Herb
C.
http://emini-watch.com/trading-indicators/volume-patterns/ Strona 1 z 10
The Better Pro Am Indicator | Emini-Watch.com 23.01.2019, 22)38
http://emini-watch.com/trading-indicators/volume-patterns/ Strona 2 z 10
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Since Professionals trade in size they need to buy new lows and on down
bars and sell new highs and on up bars – before the trend changes. By
contrast, Amateurs are always chasing the trend, buying breakouts or
selling breakdowns – so doing the opposite of Professionals, buying new
highs and on up bars and selling new lows and on down bars.
By looking for these Professional and Amateur volume patterns you can get
a good sense of where the Professionals are entering trades and taking
profits. In my trading I look for Professional and Amateur activity at price
extremes and then watch to see how price reacts to determine trend
changes.
This approach takes quite a lot of interpretation and practice – but it’s well
worth it once you get the hang of it. A useful tip, to make things easier, is to
http://emini-watch.com/trading-indicators/volume-patterns/ Strona 3 z 10
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http://emini-watch.com/trading-indicators/volume-patterns/ Strona 4 z 10
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Stopping Volume and Profit Taking show Professionals are reversing their
positions. However, the Professionals trade in size and need to scale in and
out of positions. So these volume patterns are often seen before the market
eventually reverses.
http://emini-watch.com/trading-indicators/volume-patterns/ Strona 5 z 10
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The logic behind this volume pattern is that break outs led by Amateurs
often fail. Amateurs are always chasing price, entering late and expecting a
breakout from congestion to turn into a trend move. Professionals will fade
this behavior, drive price back into congestion and gun the Amateur stops.
http://emini-watch.com/trading-indicators/volume-patterns/ Strona 6 z 10
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Nothing is perfect and I don’t believe you can trade with these Professional
and Amateur volume patterns alone. However, in my own trading they are
an essential part of confirming a change of trend and signaling entry
points.
I use Better Sine Wave and Better Momentum to confirm high probability
trades:
The chart above shows a trend change and how these 3 indicators came
http://emini-watch.com/trading-indicators/volume-patterns/ Strona 7 z 10
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together:
The market ends up putting in a low at 1,060 and rallying to 1,075 before
Professionals take profits and we get exhaustion buying volume.
The indicator is not just for trading the Emini. You can use it on any
market with volume data and the indicator will automatically calculate
what levels to use for Amateur and Professional activity. Personally I hate
optimized code and none of the ‘Better’ indicator input parameters need to
be changed based on the market traded or market conditions.
What about the different average trade sizes for day and after-hour
sessions?
At the end of the day session Better Pro Am will take a few bars to “re-
calibrate” with the lower trade sizes in the after-hours. So a few Amateur
yellow bars will show immediately after the close. Then things will get back
to normal and Better Pro Am will start showing real Amateur and
http://emini-watch.com/trading-indicators/volume-patterns/ Strona 8 z 10
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Professional activity.
Better Volume infers Professional activity by looking for large volume but
relatively small range bars – “High Churn” bars. The assumption is that
Professionals can enter/exit without moving price significantly. Part of the
reason they can do this is that they enter/exit at price extremes. Amateurs
are seen on low volume bars.
Summary
This article should have convinced you to:
http://emini-watch.com/trading-indicators/volume-patterns/ Strona 9 z 10
The Better Pro Am Indicator | Emini-Watch.com 23.01.2019, 22)38
BUY NOW
http://emini-watch.com/trading-indicators/volume-patterns/ Strona 10 z 10