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The "extra" volume moment

 
 
 
 
 
 
 

Market volumes can provide traders with a lot of very important information that even some of the more advanced traders are often unaware of.

The "extra" Volume Moment is an interesting trading strategy that uses this information to enter trading positions with great precision and also with relatively high success, often very close to the optimal market conditions, which is undoubtedly one of the factors for trading success.

The moment of "extra" volume in today's strategy does not refer to the moment when trading volume rises above average, but instead refers to the moment when volumes drop to almost zero (very low). If this effect occurs, and if the current trend direction is known, then this is the right time to enter trading positions in the direction of the trend.

Why wait for low volumes: if the market is in a trend, then corrections occur periodically, which are a reflection of a strengthening counterparty. Eventually, when the countertrend side runs out of strength, then there is usually a reactivation of trend forces, which can then move the market even further in the direction of the trend.

In the case of sell signals, the procedure is almost identical. The only difference that plays a role here is the drawing of the trend line, which in this case is obviously downward.

With the momentum of "extra" volumes, it is possible to achieve success rates ranging from 60% to about 80% on currency pairs. Ultimately, the overall success rate varies not only depending on the currency pair selected, but is also influenced by the trading experience of the traders themselves.

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