An unpopular indicator that no one uses has pushed me from 3000U to 20000U in 60 days! Many people look at it every day but don't understand it at all...
Many traders feel that they need to learn a lot of technical indicators.
MACD, RSI, moving averages, Bollinger Bands... the charts are piled up, but the account keeps getting smaller.
I later realized that the more indicators there are, the easier it is to be fooled by the market.
In the past 60 days, I focused almost exclusively on one indicator that few people use seriously: volume structure.
Many beginners only look at volume and see if it is “increasing or decreasing.”
But seasoned players care more about the position where the volume appears.
I ended up doing three things:
First: If there is a sudden increase in volume at a high position, do not chase the price.
Many times that is just funds unloading.
Second: If there is a continuous decrease in volume at a low position, start to pay attention.
This indicates that selling pressure is slowly disappearing.
Third: A sudden increase in volume breaking through at a key position.
At this point, the trend often has just begun.
It sounds simple, but the real challenge is having the patience to wait for that position to appear.
In the past 60 days, almost all my profitable trades were executed only after the volume structure aligned with the key position.
Gradually, the account rolled from 3000U to 20000U.
Many experienced traders later understood:
The market is not predicted; it is created by funds.
And volume often leaves the traces of those funds.
As for the rhythm of volume judgment I use now, there are actually several key details.
Some people can understand just by looking at candlestick charts. Some may look for a year and still not understand.