Q for the community. Is the ATR valuable based against volume?I have to say that one of the most confusing indicators for me is the ATR indicator. it has the tolerance to move up or down which will tell you that you are gaining volatility or losing volatility. when you are gaining volatility above a certain amount on an asset is when it's a good time to trade. but there's nothing that tells us exactly when is that certain amount. also the gain above that unspecified amount changes between different assets and pairs that you trade.
another thing that discerns me from using the ATR Is that it's movement is related to price movement. well unfortunately we know that in the markets price can be manipulated which manipulates momentum. but the one thing it cannot be manipulated is volume.
so in today's video I'm asking a question to the community which is what happens for you guys as a benefit when the ATR is based against volume and calculated against the movement of volume.
also in today's video I show you guys how I have figured out a way for the ATR to tell you that you are just broken above the average volatility or just broken below the average volatility.
just because you are above average volatility doesn't mean you are still in a good trading area. just because you've broken above average volatility doesn't mean you can enter into a trade immediately. you also and always need extra confluences so with that being said I added this break of the average to the upside or downside into the bull bear power void and I created a method for the oscillator to spit out a simple pair of colors which you can change on your own that tell you you have just entered above average or below average volatility and as such you can start looking for your move or your exit.
so my question to the community is how relevant is volatility against volume in your indicators and trading strategies. also I'd like this to have a better layout or way of signifying you that you have broken above or below average volatility.
leave your ideas in the comments below.
Bullbearpower
User Request: How to Set Pull Back Alert on Bull Bear Power VoidOne of the users following me asked a really good question.
Thanks @Manu45e for this one. Its actually a really important thing to know about.
This will help you understand when a pullback is over and its time for a continuation trade.
1. Wait for HTF Volume to cross down below the ZERO level
2. Wait for Volume to turn BLUE while still below ZERO
3. Wait for Blue Volume to cross ABOVE the zero level
4. You need to already have current volume above the Bullish side of the VOID
Continuation trade confirmed.
For this you are going to need one indicator.
The Bull Bear Power Void
Make sure to click the image below and also click the BOOST button on that page to make it popular.
Here's the indicator
Drawing Volume Based Trendlines Support and ResistanceFor this to work you're going to need your bull bear power void oscillator.
I have mine set on its default settings but you can also set it up with the following.
Click the image below for that indicator for free
The Setup
the length is 50
the moving average is 20
the macd settings are 12 / 26 / 9
With this I have a 50 period EMA on my chart.
Drawing Support and Resistance Levels Based on Volume
When drawing support and resistance levels you should always do them on a 1 hour time frame or higher. You can do them on a 30 minute time frame but some of them will be less relevant.
Since most people and most institutions do them a 1 hour time frame and hire you might as well be doing the same.
Support and resistance levels are found in the non-tradable areas of the oscillator. in other words it's the area of the oscillator where it has a black background.
As an example if you have a pink volume bar coming down first followed by a red volume bar afterwards this would mean resistance. But both of these bars must clear the void
If you have a light green bar first outside with the tradable area followed by a dark green bar this means support and both bars must be outside the void.
As an example if you have more than one light colored bar in the tradable area followed by a darker colored bar volume then you draw your support or resistance level at the 1st alternating color bars.
Find out where your current price level is and then draw about 2 or 3 support and resistance levels above current price and two or three below current price. You don't really want more than that.
Drawing Trendlines Based on Volume
To draw trend lines you need to have a background that goes from one color to Black and then to the alternate color for example green to Black to red or red to Black to Green. if you get the same color twice then what you have is a continuation of your trend.
In a trend that goes from green to Black to Red you're looking for the highest volume in the non-tradable area and then drawing of line from there to the very first tradable volume in the red area.
Once you do this you can't move to a smaller time frame and use that trend line as a Target when moving to it or an exit point.
