Unusual Volume - CL

Discussion in 'Commodity Futures' started by macattack, Jan 15, 2013.

  1. I've noticed that. Volume gives some good clues when daytrading CL. Seems to be a little more reliable on 5-min bars than 1-min bars.
     
    #11     Jan 17, 2013
  2. NoDoji

    NoDoji

    1/15 and 12/27 (I don't have the Nov chart) examples you point out are breakouts of key intraday levels. When such a line in the sand is crossed it creates "double pressure" (Volman's term) as one side realizes it's no longer worth defending a level because it's too costly to hold until price tests the next key level further away, and the breakout traders pile in, pushing price further in that direction.

    Thorough study of price action helps you learn to identify such "lines in the sand" and stay on the right side of the market more often than not.

    Once you master price action concepts, you'll have no need to know the news, or why who buys what when; you'll have orders in place at levels where price is then more likely to move in your favor than to run against you.
     
    #12     Jan 17, 2013