Tip:
Highlight text to annotate it
X
Hello, and welcome to the Ninja
Trader Indicator Warehouse.
This is Trader Jeep and I'm here today to cover the Volume
Pressure Indicator.
By purchasing this indicator as a stand alone, or as part
of our Featured Indicator bundle--
six sample trading indicators you overlooked--
you will gain access to valuable, real-time insight
into the most important aspect of trading
in financial markets.
The smart money's current motive.
So what does this indicator do?
This volume indicator plots the buying and selling
pressure of each bar.
The bars can be Tick, Range, Time, on Volume based.
The Indicator plots both the fast and slow average of the
buying or selling pressure.
Fast line is useful for spotting divergences and
continuation trades.
This indicator is best used in conjunction with key levels of
support and resistance for trade entry and exit.
The slow volume histogram line is excellent for trend
visualization and the end of a trend when the slow line
crosses the zero line.
This benefits you, because it will allow greater
transparency--
which is a big buzzword these days--
as to what's really happening at important levels.
Remember, this tool is about assessing the motive of the
smart money, and the institutional traders, because
sometimes price alone will lie.
OK, so I've created some support and resistance zones
here on the chart.
Now here's one example of how you can use Volume Pressure
Indicator to enter into a market as it goes, as it
bounces out of a price zone.
The green zones that you see here Fibonacci retracement
zones that I've put on the screen.
And I just want to point out how the Indicator behaves as
the price trades into this support zone.
As we can see here, the price doesn't seem to want to put it
in a new low-- the zone seems to be holding.
And our Indicator shows us a nice, sharp little hook right
here, and that little hook is followed by a rally that
eventually ends up all the way into the resistance area that
I've outlined up top here.
Now as we move later on into the day, here's another
example where this price zone that we create earlier ended
up being in the high of the day.
And what I would like to do is just
highlight this double top.
And here's an example of how the Volume Pressure Indicator
can spot divergences for you.
So as we can see, the market has come up and
made a double high.
Here's the first time.
Look at the volume when we came up in May, that high in
that resistance area.
And here's the second time that we came
and tested that zone.
But look at the volume in this area.
This is a sharp divergence.
We have an equal or higher high on the price, but a lower
high on the Indicator in the area that's associated with
the second high price--
clearly a divergence.
So the indicator can show you signals along this zero line
for continuation trades, and it can show you divergences at
the top and bottom of the scale.
Now remember, whether you're day trading the E-mini S&P,
other futures contracts, or the 4x, the Ninja Trader
Indicator Warehouse will help you get more potential profits
from your technical analysis and research efforts.
Thank you for joining us.
Have a nice day.