Volume pressure represents the total amount of trading activity or contracts that have changed hands in a given commodity market for a single trading period. The greater the amount of trading during a market session the higher will be the trading pressure. Higher volume pressure on the chart means that the trading activity is heavier for that period.
Another way to look at this, is that the volume pressure represents a measure of intensity behind a price action. The greater the volume pressure the more we can expect the existing trend to continue rather than reverse.
Many trades believe that volume precedes price, meaning that the loss of buying pressure in an uptrend or selling pressure in a downtrend will signify a reversal in trend on the bar chart.
It is important to understand that the commodity price chart only records the data. In itself, it has little value. By monitoring the price trend, volume pressure the you are better able to gauge the buying or selling pressure behind market moves. This information can be used to confirm a price move or warn that a price move is not to be trusted. This will provide you with valuable information to enhance your trading strategy.
THIS INDICATOR REQUIRES BID/ASK TICK DATA. To use this indicator you must have an unfiltered data feed such as Kinetick or Continuum provided by NinjaTrader.
We recommend keeping this indicator in a separate chart/window, so as not loose any valuable intraday data. Please note this is normal behavior and a necessary part of the indicator design.
This indicator must calculate as the live price action comes in, not historical data. It creates bars when they are the most current. It cannot create them once they are older. Therefore, if you hit F5 or any behavior equivalent to hitting F5 (adding another indicator to the chart, changing a parameter in any indicator on the chart) while the indicator is active, all the indicator bars that were calculated on the live data, become historically based and no data is there to recreate them. They will “disappear”.
My first purchase I made from Indicator Warehouse was the volume pressure indicator. For my trading style, it is very effective. What also impressed me was how well designed it was and the over all reliability. Since I had such great success with it, I decided to explore more of the their products. I purchased the Visual Time and Sales indicator. Another quality, well conceived indicator. The next logical step was investigating DTS.
Upon inquiring about the trading system I received a call from Erich Senft. Erich works for Indicator warehouse. He was amazing. He was very patient and informative. It took me a while to decide which "Bird" I would consider purchasing. Erich connected me to his computer several times and walked me through a variety of trades and demonstrations. The beauty of working with Erich is he is a consummate professional trader that uses the product he is selling. Not only did I learn about the product I picked up a lot of trading tips. Erich is a winner and Indicator warehouse is a classy, reliable vendor. Great service, great products, great people."
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LIVE TRADE ROOM DISCLOSURE: All presentations, videos, and information are for educational purposes only and the opinions expressed are those of the presenter only. All trades presented should be considered hypothetical and should not be expected to be replicated in a live trading account.
Commodity Futures Trading Commission Futures and Options trading has substantial potential rewards, but also significant potential risk. You must be aware of the risks and be willing to accept them to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS, IN GENERAL, ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
Use of any of this information is entirely at your own risk, for which Indicator Warehouse will not be liable. Neither we nor any third parties provide any warranty or guarantee as to the accuracy, timeliness, performance, completeness or suitability of the information and content found or offered in the material for any particular purpose. You acknowledge that such information and materials may contain inaccuracies or errors and we expressly exclude liability for any such inaccuracies or errors to the fullest extent permitted by law. All information exists for nothing other than entertainment and general educational purposes. We are not registered trading advisors.