The Ultimate edition offers the very best MT4 template for all “Smart Money” traders, highly tuned and calibrated over many years. I believe it is the most comprehensive and informative ‘Smart Money / Market Maker’ type MT4 template available. I assembled it for my own everyday use and it contains the best components of the BTMM, ICT and Wyckoff trading systems, as well as my proprietary scalper indicator and charts for ultra ‘scalper’ trade entries on these larger ‘smart money’ day-trades.

 

My ‘Ultimate edition’ MT4 templates contain 3 major advantages that retail traders simply don’t utilise properly (or at all):

• Multiple timeframes (on one screen)
• Currency Index charts (+ my proprietary Scalper indicator)
• Volume matrix (Volume Profile on the Price axis, VSA on the Time axis)

 

The Ultimate edition trading system combines the ‘Daytrader + Volume matrix’ charts with my ‘Scalper’ charts.

• The ‘Daytrader + Volume matrix’ charts combine multi timeframe charts with 2 axis of Volume (time & price)
• The ‘Scalper’ multi timeframe charts have been added because they allow me to achieve ‘scalper’ type trade entries (with a much smaller stop loss) on these typically much longer ‘Daytrader’ type trades

 

The Ultimate edition contains:

• The complete ‘Daytrader + Volume matrix’ edition combined with my ‘Scalper’ charts for more precise trade entries
  • 50 “Smart Money” MT4 Profiles
  • 765 individual charts
• The complete ‘Scalper + DX’ edition
  • 30 “Smart Money” MT4 Scalping Profiles
  • 712 individual charts
• 8 Full currency Index charts (like the currency pair pictured above)
  • AUDX, CADX, CHFX, EURX, GBPX, JPYX, NZDX, USDX
• 2 Profiles containing 4 DX currency charts per Profile (to monitor multiple DX charts simultaneously)

That’s a total of 92 MT4 Profiles, 26 custom Indicators, and 1693 individual charts!

• MANUAL trading system

• Includes 92 “Smart Money” MT4 Profiles and 1693 individually hand crafted MT4 charts

• Multi time frame (M1, M5, M15, M30, H1, H4, Daily, Weekly, Monthly)

• Contains BTMM/Wyckoff/ICT concepts

• Easily allows you to pick out – Breaks in market structure, Order blocks and Fair value gaps on multiple time frames at the same time

• 26 Custom coded MT4 indicators

• My MTS_Scalper indicator, which is a combination of four custom coded indicators (plus a personal license that will never expire and has no recurring charges for use) 

• 2 axis of Volume (Time & Price) – VSA (Volume Spread Analysis) + Volume Profile

• 50 Pre Built ‘Daytrader’ MT4 Profiles for the most popular 28 Currency pairs, as well as popular Commodities, Indices, Crypto currencies and Stocks

• 29 Pre Built ‘Scalper + DX’ MT4 Profiles for the most popular 28 Currency pairs, plus Gold

• 3 ‘Master Builder’ MT4 Profiles, containing the ‘MTS_Symbol Changer’ indicator, allowing you to quickly and easily make your own MT4 profiles (with all indicators automatically included and pre-set) for ANY instrument your broker lists. Easy!!

• 8 Major currency Index charts – AUDX, CADX, CHFX, EURX, GBPX, JPYX, NZDX, USDX (requires a Free demo account with one particular MT4 broker in order to chart ALL 8 currency Indexes)

• 2 MT4 Profiles containing 4 DX currency charts per Profile (to monitor multiple DX charts simultaneously)

• Higher Time frame line chart overlay indicator for easy external range mark up (H4, Daily, Weekly, Monthly)

• Price alert indicator for Higher Timeframe POI’s (popup/push/email notifications) 

• User manual – 147 page PDF of comprehensive step by step Instructions with pics

• Download links to the ‘Smart Money’ Course by one of my mentors, a fully comprehensive training program containing 26 hours of full HD 1080p video files. A VERY valuable education!

• Works on all markets – Forex, Commodities, Indices, Crypto and Stocks

• 100% Customer satisfaction – Buy with Confidence!

Not familiar with “Smart Money” concepts? Want to learn?

All of my products come with 25+ hours of Smart Money video courses (in full HD) by some of my mentors, a VERY valuable education!

$199 – Purchase the Ultimate edition trading system via Paypal

Instant download after payment

$199.00 – Purchase Checkout Added to cart

NOTE: The rest of this page contains information on the “Ultimate’ Smart Money MT4 Profiles

For more information on the ‘Scalper’ edition product that is BUNDLED in the Ultimate edition package, please click HERE

• AUDCAD
• AUDCHF
• AUDJPY
• AUDNZD
• AUDUSD
• CADCHF
• CADJPY
• CHFJPY
• EURAUD
• EURCAD

Commodities:

• Gold/USD – XAUUSD
• Silver/USD – XAGUSD
• Platinum/USD – XPTUSD

Indices:

• Dow Jones – US30
• S&P500 – US500
• FTSE100 – UK100
• DAX – GER30
• NASDAQ – NAS100
• NIKKEI – JPN225

• EURCHF
• EURGBP
• EURJPY
• EURNZD
• EURUSD
• GBPAUD
• GBPCAD
• GBPCHF
• GBPJPY
• GBPNZD

Stocks:

• Amazon – AMZN.US
• Apple – AAPL.US
• Facebook – FB.US
• Google – GOOG.US
• IBM – IBM.US
• Tesla – TSLA.US

• GBPUSD
• NZDCAD
• NZDCHF
• NZDJPY
• NZDUSD
• USDCAD
• USDCHF
• USDJPY

 

Crypto:

• Bitcoin/USD
• BitcoinCash/USD
• Dash/USD
• Dogecoin/USD
• Ethereum/USD
• Litecoin/USD
• Ripple/USD

Note: Also comes with ‘Master Builder’ MT4 Profiles containing the ‘MTS_Symbol Changer’ indicator, allowing you to quickly and easily make your own MT4 profiles (with all indicators automatically included and pre-set) for ANY instrument your broker lists. Easy!!

 

You need to be checking the setup on your higher timeframe ALL the time. If you are not utilizing a multi timeframe approach to your “Smart Money” trading style, you are missing out on vital trading information as well as very profitable trade entries.

Typically, beginner or novice traders lock in on a specific timeframe, ignoring the more powerful primary trend. Alternately, traders may be trading the primary trend but underestimating the importance of refining their entries on a more advantageous short-term timeframe.

The highest probability trades you can take are the ones where your higher timeframes and lower timeframes are in alignment!

Monitoring multiple timeframes can multiply your returns

 

• Multi-timeframe analysis is the process of viewing different time periods of any financial instrument before making a trading decision. It is one of the most important aspects that all professional day traders and swing traders use. Why? Because it helps you identify key levels of support and resistance!
• Multiple timeframe analysis (that follows a top down approach) allows you to gauge the longer-term trend whilst spotting ideal entries on a smaller timeframe chart.
• Ultimately, the monitoring of multiple timeframes at once (especially when scalping) allows traders a better understanding of the dominate trend in the instrument they are trading and adds confidence to their trading decisions.

 

The US Dollar Index is a guide for the direction of the USD in any relevant currency pair

 

We apply this same logic to all the other popular currency Index charts. This is why I have included the DX charts of the 8 most popular currencies:

• AUD – CAD – CHF – EUR – GBP – JPY – NZD – USD

The US Dollar Index (also known as the DXY) is used by (smart) traders to measure the value of the USD against a basket of currencies used by US trade partners.

• The US Dollar Index will RISE if the Dollar strengthens against these currencies
• The US Dollar Index will FALL if the Dollar weakens against these currencies

Trading any pair with a USD half will be guided by the USD index, so here are a couple of key facts to keep in your mind:

• If the USD is the base currency (USD/xxx) the US Dollar Index and that currency pair will typically move in the same direction
• If the USD is the quote currency (xxx/USD) the US Dollar Index and that currency pair will typically move in opposite directions

 

The US Dollar Index compares the USD to a basket of currencies

 

The US Dollar Index is a measure of the value of the US dollar in relation to the value of some of the US’s most important trading partners.

The currencies are weighted in the following ways:

• The Euro (EUR) 57.6% weight
• The Japanese Yen (JPY) 13.6% weight
• The Great British Pound (GBP) 11.9% weight
• The Canadian Dollar (CAD) 9.1% weight
• The Swedish Krona (SEK) 4.2% weight
• The Swiss Franc (CHF) 3.6% weight

It is immediately apparent that the US Dollar Index is heavily influenced by the Euro. This gives us the first clue as to how the USD Index can be useful for making trading decisions…

 

The USDX is the Anti-Euro Index

 

When the Euro (EUR) loses value this means the Dollar Index gains value. The nearly 60% weight of the Euro in the US Dollar Index means that the EURUSD pair and the US Dollar Index are inversely correlated the majority of the time. Armed with this knowledge the US Dollar Index becomes an excellent indicator for the EUR/USD, and the US Dollar Index can be studied for clues as to the EUR/USD’s next move. The same theory can be applied to all the major currencies that contain the USD, IE: AUDUSD, USDCAD, USDCHF, GBPUSD, USDJPY, NZDUSD (as well as the minor and exotics VS USD for that matter).

This theory works just as well on all the other popular currency Index charts! So you can choose any one of the most popular 28 pairs and trade with both their currency index charts for triple confirmation of your trade direction.

This offers you a MASSIVE advantage over the usual practice of scalping by observing the single currency pair alone!

 

The ‘Ultimate’ Smart Money MT4 Template allows you to easily identify the most important points of interest (POI’s) on all timeframes and on one single screen:

• Market structure
• Order flow
• External and internal range Liquidity
• Engineered liquidity (double tops/bottoms)
• Market imbalances (fair value gaps)
• Order blocks

Any “smart money” trader knows that these are the most important levels for the smart money, and therefore these points of interest are the most likely price points where ‘large reactions’ may occur.

When price hits one of these important levels and has a strong reaction (“smart money” defending their positions), these are the perfect price points to enter a trade WITH the smart money and ride on their coattails…

I only trade when price reacts at one of these levels!

Want to learn? Each of my products come with a FREE 26 hour Smart Money Video course (in full 1080 HD) by one of my mentors, a VERY valuable education that gives you the trading edge over smart money.

“Smart Money” trading principles should always be built around Higher Timeframe ‘Points Of Interest’ (POI’s).

 

You should frame ALL your trade entries on levels that attract INSTITUTIONAL SPONSORSHIP, and to do that you need to be using the daily, weekly and monthly order block / external range levels. Why?

Because most Banks and Large funds do all their analysis on the monthly and weekly charts, and they EXECUTE THEIR TRADES on the DAILY chart.

Therefore, the smart money or ‘BIG BOY’ liquidity pool levels are always around the Daily, weekly and monthly ‘support and resistance’ or ‘external range’ levels and this is ultimately where price WILL be drawn to, IE: Monthly, Weekly and Daily:

• External Liquidity (external range)
• Internal liquidity (previous peaks)
• Order blocks
• Imbalances (fair value gaps)

 

Don’t get caught trading in the wrong direction!

 

If you don’t mark-up a chart with the Higher Timeframe’s ranges (previous market highs and lows) you might get caught trading in the wrong direction.

How? Let’s say a currency pairs’ monthly and weekly charts market structure is Bearish, but you are in a Bullish trade on the Daily chart… you might fail to notice that price has moved up into a weekly or monthly Imbalance or order block, where you EXPECT price to have a very large reaction and bounce back into the higher timeframe Bearish trend.

 

This is why I use the MTS_Overlay Line Chart indicator on the H4 chart…

 

To manually mark-up the ‘external range’ (liquidity) levels of the Monthly, Weekly, Daily and H4 charts…

This allows you to instantly spot ALL the higher timeframe POI’s (points of interest) on a SINGLE CHART (you can also place our Price alert indicator at these POI levels in order to be notified by popup, email or text to cell phone). It’s an extremely efficient (and profitable) way to trade.

 

All “Smart Money” traders know that the best trade entry opportunities occur when price has breached a previous peak level (support or resistance level) on the higher timeframes to activate the liquidity pools that accumulate there. Typically price will then reverse and head off in the opposite direction. Therefore these levels make for excellent trade entry points.

If you are already a “Smart Money“ trader you will know that the ‘BIG Boys’ (central banks, etc) do all their trade analysis on the monthly and weekly charts, but they execute all their trades on the Daily or H4 Charts

• Therefore the intraday charts (M1, M5, M15, M30, H1) have NO INFLUENCE over price, they will only reflect what is going on with the major BANK price levels on the Daily, Weekly and Monthly charts.

I have set up the “Overlay Line Chart” and the “Price Alert Panel” indicators on the H4 chart of every ‘Ultimate’ profile for this very reason (to recognise these important levels and alert me to the trade opportunity…)

Once I am alerted to a possible higher timeframe trade opportunity, I then drop to the lower timeframes (usually the m5 or even the m1 chart) to look for a potential setup and trade entry point.

Over the years I have refined my Ultimate charts so that I seek out and take ONLY these high probability trade opportunities. Why?

Because these trade setups offer:

• Very high risk to reward (R:R) trades
• Scalper type trade entries and very small stop losses
• The opportunity to ‘ride the coattails’ of the smart money on these large moves

 

My High Probability / Low Risk Trade Setups

 

This is the procedure I follow every day when I am trading. (I go into much more detail in the product)

Remember that locating price levels that align with institutional order flow is KEY.

• In a long term uptrend, always focus your attention on placing alert levels on BULLISH order blocks when the Monthly, Weekly and Daily charts are all trending BULLISH (vice versa for Bearish)
• Drop to the H4 chart and use the ‘Overlay Line Chart’ indicator to mark up the H4 chart with all Monthly, Weekly, Daily and H4 ‘external range’ levels (support & resistance)
• Use the ‘Price Alert Panel’ indicator to place an alert line at the closest ‘external range’ levels (both above and below the current price)
• WAIT for price to breach one of these alert levels (preferences is always to trade with the current TREND direction)
• When you get an alert, drop to the lower timeframes to look for a potential setup. You are looking for:
  • A stop hunt at the breach of the current range that caused the alert
  • Price to then reverse and make a ‘break of structure’ on the lower timeframes
  • Price to return to the order block and a shift in market structure
• Only THEN do you enter a trade (if the points mentioned above do not occur, you simply don’t trade)

If you can enter a trade using the procedure above, large risk to reward ratio‘s are much more likely! Because you are framing your trade entries on levels that should see INSTITUTIONAL (Smart Money) sponsorship, IE: Daily, Weekly and Monthly ‘external range’ levels.

The ‘Big Boy’ liquidity pool levels are always around the Daily, weekly and monthly ‘external range’ levels, so if price does react when it reaches these levels you can expect a very large move away from these price points. By dropping down into the lower timeframe charts to look for your trade entry you are able to use a much smaller stop loss, and if the trade does go your way it could offer VERY large rewards for minimal risk.

So you see ITS NOT HAVING BIG RISK THAT MAKES GOOD PROFITS, IT’S HAVING SMALL RISK THAT ALLOWS YOU TO MAKE GREAT RETURNS. That’s the REAL secret.

We know that these are the most important levels for the “Smart Money”, and therefore these are the most likely price points where ‘large reactions’ may occur. When price hits one of these important levels and has a strong reaction (“smart money” defending their positions), these are the perfect price points to enter a trade WITH the “Smart Money” and ride on their coattails…

I ONLY TRADE WHEN PRICE HITS ONE OF THESE LEVELS!

‘Scalper’ section:

 

Note: MUCH more information on the ‘Scalper’ trading system that is BUNDLED in this “Ultimate edition” is located HERE

Please review all the information contained in the ‘Scalper edition’ product section, so you will be able to achieve the full value of the ‘scalper’ type entries that the addition of these charts allow on these larger ‘Daytrader’ type trades.

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Five Types of Indicators

There are essentially 5 different types of indicators

As most traders do not know this fact, they usually tend to favour 1 or 2 types of indicators and neglect using the other types at all, leading to a very unbalanced indicator selection on their charts.

5 types of indicators

1. A Trend-Following Tool – to confirm the direction of the major trend
2. A Trend-Confirmation Tool – Used as double confirmation of the trend (to see if the trend-following tool and the trend-confirmation tool agree)
3. A Trend Reversal Tool – A ‘reversion to the mean’ indicator
4. An Overbought/Oversold Tool – measures the magnitude and velocity of directional price movements, it calculates momentum as the ratio of higher closes to lower closes
5. A Profit-Taking Tool – This tool takes the standard deviation of price-data changes over a period, and then adds and subtracts it from the average closing price over that same timeframe

I have picked the best performer from each indicator type and combined them all into my perfectly balanced and custom coded indicator – the ‘MTS_Scalper’…

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The MTS_Scalper Indicator

My MTS_Scalper indicator is a very powerful tool in your trading as it can offer you much smaller ‘scalper’ type trade entries, as well as confirm a directional bias for the currency pair you are trading.

Note: The MTS_Scalper indicator and exactly how to use it is fully explained in the user manual of the ‘Scalper edition’ product. The PDF user manual contains 55 pages of comprehensive instructions with pictures.

My unique ‘MTS_Scalper’ indicator allows me to trade both with and AGAINST the current trend with ABSOLUTE confidence!

Read that statement again, because I can guarantee you it’s ultra-rare and very important!

As well as having the confirmation of the MTS_Scalper indicator on multiple timeframes to trade with the trend, imagine being able to trade trend retracements with absolute confidence and having a very good idea of how deep that retracement will go! This is what my scalper indicator does extremely well. These trend ‘retracement trades’ happen every day in the markets and I actually seek them out because I am so confident to trade them with my ‘MTS_Scalper’ indicator. I have never seen another trading indicator that performs anywhere near it when it comes to trading against the trend.

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TRIPLE CONFIRMATION of your trade Entry!

 

The DX charts (including the ‘MTS_Scalper’ indicator) when used in conjunction with the ‘Ultimate’ MT4 profiles, can offer you a TRIPLE CONFIRMATION of your trade entry!

HOW?

Utilising 2 computer screens, we can view:

• The Scalper section of the ‘Ultimate” MT4 template of the currency pair (EG: GBPUSD)
• The DX chart ‘base’ currency (EG: GBPX)
• The DX chart ‘quote’ currency (EG: USDX)

This offers you a MASSIVE advantage over the usual practice of trading by observing the single currency pair alone! However I then further multiplied this advantage 10 fold by adding my custom coded MTS_Scalper indicator to ALL 3 charts (the currency pair and the 2 relevant DX charts) allowing me to follow my indicator signals on all 3 charts at the same time.

As per the pic above:

• The ‘Ultimate’ MT4 profile of the GBPUSD currency pair is located on one screen
• The GBPX and the USDX multiple timeframe Index charts are located on a 2^nd screen

So when looking for a trade:

• If the GBPUSD pair is bearish…
• And the GBPX Index chart is bearish
• And the USDX Index chart is bullish
• You have triple confirmation!

IE: the trend on all 3 charts AND my MTS_Scalper indicators are telling me the same story, so it’s actually very hard to lose a trade!

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How to detect BLATANT “Smart Money” Stop Hunts

 

When you are trading a single currency pair and its 2 relevant DX charts, say:

• GBPUSD
• GBPX
• USDX

Sometimes you will notice that the GBPUSD currency pair will suddenly take off and move hard and fast. Meanwhile, BOTH the GBPX and the USDX are barely moving at the same time…

So given the large movement in the GBPUSD currency pair, you would think that this movement MUST originate from either the GBPX or the USDX, as they are the 2 currencies that make up the currency pair.

But neither of them are moving much… so then what the hell is going on?

This is a STOP HUNT by the “Smart Money”!

This is a DEAD GIVEAWAY that “Smart Money” is involved in the move. Did I say involved? Lol, I meant they PLANNED it and they are the ONLY reason that the move is happening.

• Do you see how manipulated the financial system and charts are now? ‘Smart Money’ plan all these moves well before they happen, they are designed purely to line THEIR pockets and take YOUR money
• Do you also see how you can use this knowledge to MAKE money in your trades, rather than being caught trading in the wrong direction?

You will only be alerted to these types of moves if you are watching the DX charts as well as the currency pair!

This move does not happen every day, but when it does it commonly occurs in either the London open or the New York open session. I WATCH for it and I LOVE IT!

Why?

Because it means that the “Smart Money” is feigning a move in one direction (typically to soak up all the orders located in a liquidity pool at a previous high or low peak) before racing off in the opposite direction. Think about it, if neither the GBPX or the USDX is moving with the same strength as the GBPUSD, but they alone make up the currency pair, then something fishy must be going on… It IS!

So whenever I notice this behaviour I start rubbing my hands together because I know exactly what is going to happen and I adjust my lot size of those trades accordingly…. These trades can make you a lot of money!

Note: this type of move can happen in ANY currency pair.

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Ultimate edition ‘Daytrader + Volume matrix’ section:

 

This section of the ‘Ultimate edition’ charts contain the best components of the BTMM, ICT and Wyckoff trading systems. It’s the very best MT4 template for all “Smart Money” traders, highly tuned and calibrated over many years.

M1 Chart Features:

• MTS_Name & Spread – shows symbol name, current price and spread
• MTS_3x ADR – shows ADR (Average Daily Range) and 3 x ADR
• MTS_Zig Zag – Easily spot range highs and lows
• MTS_Volume Profile – instantly recognise points of high liquidity on the ‘price’ axis
• MTS_VSA – instantly recognise points of high or low volume on the ‘time’ axis

M5 Chart Features:

• MTS_Shadow Boxes – highlights the London open and New York open ‘Kill Zones’
• MTS_Zig Zag – Easily spot range highs and lows
• MTS_Volume Profile – instantly recognise points of high liquidity on the ‘price’ axis
• MTS_VSA – instantly recognise points of high or low volume on the ‘time’ axis
• MTS_MACD + Divergence – useful as an ‘overbought/oversold’ confirmation tool

M15 Chart Features:

• • • MTS_Shadow Boxes – highlights the Asian session as well as the London open and New York open ‘Kill Zones’
    • MTS_Multi EMA – shows the 13, 50 and 200 EMA’s on the chart
    • MTS_Day Open – highlights the ICT ‘12am New York’ price point
    • MTS_Weekly – highlights the previous weeks ‘Open, Low and High’ price points (liquidity)
    • MTS_Daily HiLo – highlights the previous days ‘High and Low’ prices (liquidity)
    • MTS_ADR – highlights the automatically calculated Average Daily Range and indicates if/when it is exceeded
    • MTS_Zig Zag – Easily spot range highs and lows
    • MTS_Volume Profile – instantly recognise points of high liquidity on the ‘price’ axis
    • MTS_VSA – instantly recognise points of high or low volume on the ‘time’ axis
    • MTS_MACD + Divergence – useful as an ‘overbought/oversold’ confirmation tool

Yes, there are a LOT of indicators on the M15 chart. Why? I have added them all because they are “smart money” indicators.

Why are they “Smart Money” indicators? Because they alert me to where all the money is located! They point out price levels on the chart where all the LARGE ‘liquidity pools’ are, and “Smart Money” LOVE to target these areas so they can take all the ‘dumb money’ (retail traders) money that is located there!

H1 Chart Features:

• MTS_Multi EMA – shows the 13, 50 and 200 EMA’s on the chart
• MTS_Weekly Lines – highlights the start/end of each weekly period
• MTS_Shadow Boxes – highlights the Asian range H1 candles
• MTS_ADR – highlights the automatically calculated Average Daily Range and indicates if/when it is exceeded
• MTS_Price Line Grid – Highlights the 00, 50 & 25 price (psych) points
• MTS_Zig Zag – Easily spot range highs and lows
• MTS_Volume Profile – instantly recognise points of high liquidity on the ‘price’ axis
• MTS_VSA – instantly recognise points of high or low volume on the ‘time’ axis
• MTS_MACD + Divergence – useful as an ‘overbought/oversold’ confirmation tool

Daily Chart Features:

• MTS_Zig Zag – Easily spot range highs and lows
• MTS_Volume Profile – instantly recognise points of high liquidity on the ‘price’ axis

H4 Chart Features:

• MTS_Zig Zag – Easily spot range highs and lows
• MTS_Volume Profile – instantly recognise points of high liquidity on the ‘price’ axis
• MTS_Overlay Line Chart – used for manual ‘external range’ (liquidity) mark-up on the higher timeframes (H4, Daily, Weekly, Monthly) allowing you to instantly spot all higher timeframe POI’s (points of interest) on a single chart
• MTS_Price Alert Panel – allows easy notification for all manually highlighted Higher Timeframe POI’s via popup/push/email notifications

Weekly Chart Features:

• MTS_Zig Zag – Easily spot range highs and lows
• MTS_Volume Profile – instantly recognise points of high liquidity on the ‘price’ axis

Monthly Chart Features:

• MTS_Zig Zag – Easily spot range highs and lows
• MTS_Trade Plan – A simple text indicator, allowing you to list your higher timeframe trend direction and breaks in market structure notes for easy referral (especially when trading multiple pairs)

 

In my opinion, volume is the most important information the market can give us. Why is it so important? Because around 75 % of ALL trades are made by the 10 biggest financial institutions (the “Smart Money”), they have extreme amounts of money and they manipulate the markets at will.

Volume has to be the most underrated market variable used in technical analysis!

Did you know?

• VOLUME is a NON LAGGING indicator!
• VOLUME shows the activity of the “Smart Money” in the market (they simply can’t hide their trading volume)
• VOLUME Identifies the strength of trends (and when they start to lose momentum)
• Changes in VOLUME indicate impending price reversals

I have combined two different variations of volume into my Mt4 templates:

• ‘Volume Profile’ on the charts PRICE axis
• ‘Volume Spread Analysis’ (VSA) on the TIME axis

Most Traders Ignore Volume – Big Mistake!

The significance and importance of volume in the market seems to be little understood by most nonprofessional traders. Most traders believe you can’t analyse volume in the Forex markets because that information is not available, and that is not the (whole) truth of the matter.

There is a common misconception that volume cannot be used reliably in Forex trading for two reasons:

• There is no central exchange and therefore no official volume data
• When you’re looking at volume data on your Forex platform, you’re actually viewing ‘tick volume’, not actual volume traded – such as the volume with a stock chart

‘Tick volume’ measures the number of times the price ticks up and down. This is an excellent indicator of the strength of activity in any given bar. But also, the correlation between tick volume and actual volume traded is incredibly high. In 2011, Caspar Marney (head of Marney Capital and ex HSBC trader) conducted an analysis of actual volume and tick volume in the Forex market. For the pairs he studied, he calculated the correlation between tick volume and actual volume is over 90%.

Volume in Forex does work! Period.

Tick volume may not be giving us real-time order flow cues, but it is giving us a fair idea about how rapidly price is moving in a particular direction (rapid price movement equals higher tick volumes).

As a “Smart Money” trader, this bit of information can be gold when put in tandem with other relevant information. If you know how to analyse and interpret volume, you’ll be able to recognise market turning points and be able to anticipate market pullbacks and trend changes.

Volume Profile

The “Smart Money” have extreme amounts of money and they move the markets whenever they like.

But having so much money is also a big problem for them. “Smart Money” can’t just buy 100,000 lots of GBPUSD with one mouse click. They need to enter their positions very slowly (usually over hours) to remain unnoticed.

But their huge volumes will always be visible, and we will always be able to track them. How? With Volume Profile!

Unlike standard volume indicators that only show volumes on the Time axis, Volume Profile is located on the PRICE axis, and can provide much more important information (IE; volume at a specific PRICE).

Volume on the price axis is so valuable because it tells us which price levels are the most important for the “Smart Money” guys who dominate the markets. The more that volume accumulates at a specific price level, the more significant that price level is! (You can tell the amount of volume by the thickness of the Volume Profile).

Note: you cannot use the large build-up of a volume profile level as it is being MADE. You utilize volume profile price levels when price RETURNS TO THAT LEVEL.

The THICK Volume Profile

In a place where the volume profile gets really wide, heavy volume is being injected into the market.

Thick volume profiles usually appear when price stays in a tight range for hours at a time (one great example is the ‘Asian’ session). These profiles are thick because the “Smart Money” are entering huge amounts of volume into the market very slowly over a long period of time.

For this reason these ‘thick’ volume profiles are usually very wide and may contain more than one single POC (Point Of Control).

• The most significant level in the volume profile histogram is the Point of control (POC). The POC is the exact price level where the “Smart Money” placed most of their volume (money). They accumulated their positions in a wider range, but the POC (signified by a dark blue line that turns gray) is the exact price level where they accumulated most of their volume. It serves as a very strong reference point for all market participants because it shows where the major interest of the “Smart Money” is located.

When price returns to the POC in these thick volume profiles, the aggressive market participants (Smart Money) will most likely become very aggressive again, and add even more orders into the market to defend their positions.

Therefore when price returns to the POC level of a thick volume profile, and you start to see a reaction, you can usually count on it becoming a large reaction in the opposite direction.

 

The THIN Volume Profile

Where the volume profile is thin, only low volume was injected into the market.

Thin volume profiles appear when there is a strong uptrend or a strong downtrend. These profiles are thin because one side of the market is very aggressive and the price moves very quickly in one direction. There is not much time for volume accumulation because the market is moving too fast.

For this reason there are usually a few spots with small ‘volume clusters’ but no major volume accumulation areas. The most significant levels in a thin volume profile are where the price stopped moving for a little while and the volume profile produced these small ‘volume clusters’.

In these small volume clusters, aggressive market participants (Smart Money) were adding to their trading positions to participate even heavier in the trending market. If the price returns to these small ‘volume clusters’ these aggressive market participants will probably become aggressive again and add more orders to the market to defend their positions, and this helps to move the price in the direction of the trend again.

• Significant volume clusters in an uptrend (in a thin profile) are great support levels
• Significant volume clusters in a downtrend (in a thin profile) are great resistance levels

Reading the Volume Profile on Order block levels

All “Smart Money” traders know that an “order block” is the last green candle before a down move and the last red candle before an up move.

It’s rather uncanny how strong “Volume Profile” levels will line up perfectly with some order blocks:

In this pic we can see that price is in a downtrend:

• Price retraces to the order block highlighted with a red arrow
• On the bottom of the body of the green order block candle was the grey line signifying the strong Volume Profile level
• Price hits this level then REVERSES back into the downtrend
• This is not a coincidence!

Watch out for this alignment of strong Volume Profile levels and order blocks, they make great trade entry points.

VSA (Volume Spread Analysis)

The study of volume with price started in the early 1900s with a trader by the name Richard Wyckoff. His research, then known as Wyckoff Analysis, developed into what is known today as Volume Spread Analysis or ‘VSA’ for short. Wyckoff stared with a premise that price, volume and time could provide a picture of the supply and demand from “Smart Money” in the markets.

The VSA volume indicator is the best (time based) volume indicator bar none. It works in all markets and for all time frames, but is particularly useful for tick charts.

The VSA method works particularly well at highlighting the imbalances of supply and demand.

Volume Spread Analysis seeks to establish the cause of price movements in the markets. The cause is simply the imbalance between strength and weakness in a liquid market. This is created by the activity of “Smart Money”!

Note: I only run the VSA indicator on the lower timeframes (M1, M5, M15 and H1) because the volume levels (on the TIME axis) of the higher timeframes become irrelevant for day trading.

The VSA indicator uses a combination of bid/ask volume and price range to identify changes in the tick volume levels:

• GRAY thin bars account for much of the bars in the VSA indicator. Thin gray bars mean that nothing special is happening in the market and volumes of trades match the standard values for their time period.
• GRAY thick bars indicate very low trading volume. These bars usually have a low height. A decrease in volumes typically occurs when the current trend is close to its completion. The thick gray bar may also indicate the end of market retracement. They are also very useful confirming indicators of a change in trend direction when the market is testing a top or bottom
• WHITE bars indicate that large volumes are present in the market. When a white bar appears it usually signals a change in trend direction (that does not mean that price is going to reverse immediately and sharply though, the price reversal may happen a few candles later due to the effect of market inertia)
• GREEN bars indicate that large amounts of Buyers are entering the market and the bars are usually large in size. The beginning of a new uptrend is almost always marked by a green bar. Market tops are also characterized by green bars (signifying a last big push upwards) often followed by low volume bars and a price reversal. During a down trend, retracements are often characterized by green bars (these typically appear as traders are calling a peak low too quickly and starting to place long orders into the market). Usually, as soon as these green bars start to decline, the down trend will continue.
• RED bars indicate that large amounts of Sellers are entering the market and the bars are usually large in size. The beginning of a new down trend is almost always marked by a red bar. Market bottoms are also characterized by red bars (signifying a last big push down) often followed by low volume bars and a price reversal. During an uptrend, retracements are often characterized by red bars (these typically appear as traders are calling a peak high too quickly and starting to place short orders into the market). Usually, as soon as these red bars start to decline, the uptrend will continue.
• MAGENTA bars are RARE! They represent maximum volume entering the market (often seen on large news announcements) and they are the strongest signal. They usually indicate the formation of a strong new price reversal.

My Secret to Analysing Volume…

Ultra high volume and ultra low volume seen at THE RIGHT PLACE in the charts, are signals from the “Smart Money” of their true intentions. Always pay extra attention to ultra-high and ultra-low volume in the chart when it appears and ask yourself ‘what is the Smart Money doing here’?

Ultra high volume is very important when you see it, because it will often indicate the top or bottom of a range and give you an early warning that the “Smart Money” is setting up the trade against the ‘herd’.

• When there is higher volume bars, but PRICE is not really moving (seeming to go nowhere) this is the “Smart Money” buying or selling INTO the retail traders at a range high or low!

IE: If price has stalled at a peak high but you still see high volume bars appearing, “Smart Money” is SELLING into all the ‘buy’ orders the retail traders are offering them. (The retail traders think the price is still going long, but the “Smart Money” is SELLING into all these ‘buy’ orders to FUEL their IMPENDING move short!)

When price is going higher & breaks a previous high, but the VSA indicator on the M1 chart is starting to show low volume, you can be pretty sure that price is about to turn! (because if the strong move up were going to continue, the volume should be going UP not down!) Vice versa for a previous low…

Now do you see why learning to read ‘volume’ on your charts can assist you in not being snagged and dragged ass backwards in your trades by “Smart Money”?

 

I have included all the major currency DX charts so you are able to monitor each currency Index exactly the same way as you monitor any single currency pair.

• AUDX
• CADX
• CHFX
• EURX
• GBPX
• JPYX
• NZDX
• USDX

You may be asking ‘Isn’t that just extra work?’ Why is this a good idea?

Well you see the currency index charts are manipulated by the “Smart Money” in exactly the same way that they manipulate any other financial instrument!

Armed with this knowledge, and given the importance of the DX charts and how we trade with them, I highly recommend that you take the time to study (and mark up) the higher timeframe ‘external ranges’ exactly as you would any particular currency pair that you are looking to trade.

 

I use the same procedure to mark up the H4 chart of any DX chart exactly the same as I would for any particular currency pair. Price will usually react heavily to the extremities of any long term ‘external range’ on the DX charts, just like it does on any currency pair. So its important to be aware of these levels in the currency DX charts of any currency pair you are trading, because the reaction on the DX chart WILL spill over into that pair.

I also use the ‘Price Alert Panel’ on the DX charts to alert me of these higher timeframe ‘points of interest’ exactly as I would any other currency pair.

 

There are 2 versions of the ‘4 DX per Screen’ profiles, each containing 4 of the 8 DX (Index) charts…

• AUDX
• CADX
• CHFX
• EURX
• GBPX
• JPYX
• NZDX
• USDX

If you are a serious trader like I am, you probably have a ‘multiple monitor’ setup on your trading computer…

I don’t consider this a compulsory setup, but I think you will find (like I do) that it is very advantageous to have ALL the included DX charts of any and all currency pairs you are trading displayed on a screen at all times. I understand if you don’t have the ‘multiple monitor’ real estate available for this option, so I have included a ‘4 DX per Screen’ BUILDER profile…

You can construct your own ‘4 DX per Screen’ profile with the 4 DX charts of your choice, simply by making your own DX selections in the ‘4 x DX Builder’ profile and then saving the new profile with a name you choose.  You can quickly and easily make a DX chart that includes only the DX charts that you require…

Using the ‘MTS_Symbol changer’ installed on each chart, you can simply choose the DX charts you require at that time and save a new MT4 profile.

Not familiar with “Smart Money” concepts? Want to learn?

All of my products come with 25+ hours of Smart Money video courses (in full HD) by some of my mentors, a VERY valuable education!

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