SynthVol strategy - volume trading by levels
SynthVol strategy is focused on traders who use VSA volume analysis in trading. The SynthVol trading strategy provides for trading at breakdown and rebound from significant levels, which are formed as a result of increased activity in the market.
Input parameters
- Currency pairs: any
- Timeframe: M15-M30
- Trading time: 24/7
- Type of strategy: Indicator, volume trading
Used indicators
- a candle
- Alert line 1
- Alert resistance
- Alert support
- ClockPips
- LotSizeCalculator
- NewsForexFactory
- SonicR PVA Vol.
- Spread
- xADR 0.2
Setup
To begin with, it is necessary to note the levels formed during the London trading session and at the beginning of the American trading session, at which the volume was equal or exceeded the value of 75. The formed level candle must necessarily have a body. Levels on pairs, which include Asian currencies, can be built during the Asian session. It is also necessary to take into account the levels of two and three days.
Market entry is made at a breakdown of the constructed level or a rebound from it.
The probability of a breakout or rebound is assessed by the nature of the volume. If price is approaching the level on bullish volumes (level above the price) or bearish volumes (level below the price), then the probability of level breakout is high. The probability of a bounce from the level increases when volumes are mixed. It is recommended to analyze volumes on several timeframes.
Level breakdown
The breakdown of the level in the strategy SynthVol means its crossing by the body of the candle with the subsequent 2-3 candles in the right direction. After the breakdown of a significant level, you can open a trade at the market price or put pending order BuyStop (in a rising market) or SellStop (in a falling market).
Rebound from the level
The rebound from a level in the SynthVol strategy means the absence of crossing by the body of the candle of a significant level and 2-3 candles, as confirmation, in the opposite direction. After a rebound from a level, you can enter the market at the current price or place a pending order BuyStop (in a rising market) or SellStop (in a falling market).
Setting stop-loss and take-profit orders
To determine the levels stop loss и Take Profit indicator xADR 0.2 is used, which is a modification of the ADR indicator. It is recommended to put a stop-loss at the level of 30-35% of ten-day ADR, take-profit - at the level of 50%.
If there are significant support or resistance levels in front of the price, it is advisable to place a take profit order at those levels.
Manifestation
When using the SynthVol strategy, news other than the most important ones can be ignored.
The recommended risk is no more than 2-3% per trade. The LotSizeCalculator indicator is integrated into the SynthVol strategy to simplify the calculation of the deal volume.
According to experts of ForTrader.org, SynthVol strategy is quite effective, but requires from the trader appropriate knowledge and practical skills of working with VSA volumes.
Download SynthVol Strategy Template and Indicators
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